I hear a lot of talk about passive income, but how realistic is it for the average person to make this work
It’s very realistic.
Here’s how it works…
Take 10% of your income and invest it every month in an index ETF like VOO.
Keep this up for up to 480 months. Eventually, your savings will grow enough to generate passive income that you can live on.
It’s even better if you do this through a retirement account like a ROTH IRA or an employer-matched 401k.
@loidfinly
I agree with this. It can be tough at first because you don’t earn much and it’s slow.
I started with nothing about five years ago and now I have 200k.
Sure, I saved a lot and kept my expenses low - now my money is working for me!
I’ve set aside a little each month for about 10 years, investing in a P2P lending platform, and now I have a 100k cash flow portfolio that generates 1k a month completely passively.
Caden said:
I’ve set aside a little each month for about 10 years, investing in a P2P lending platform, and now I have a 100k cash flow portfolio that generates 1k a month completely passively.
All the ones I tried were always risky (prosper, solo funds) how did you make sure they paid back and didn’t just run off with the money
@Bao
I also invest in P2P lending, now about 200€ a month, after a year it will be 500€, and after another year 800€. It’s not easy for them to take off with the money since I invest in platforms regulated by the central bank, they can’t access my account. Sure, there is risk, like always, but the interest is quite attractive. I earn 1300€ and spend a little.
@Bao
It’s a company partly owned by my country’s biggest bank and they went public too, so there’s extra regulation there
Caden said:
@Bao
It’s a company partly owned by my country’s biggest bank and they went public too, so there’s extra regulation there
I just calculated my earnings on one of the platforms. I reinvested interest. Total money invested is 4940, now it’s worth 6010. So I calculated a 21.66% increase over 18 months. According to the calculator, that’s a 14.44% annual increase, not too shabby.
@Zane
My net yield is 9.7% annually
I think it’s achievable for anyone who can save money for it and do the research needed. A lot of people don’t realize that even if you don’t want to be super rich, you can just invest enough so that passively it could cover your house, car, or a bill. I think knowledge and discipline are the biggest missing pieces.
I’d say it’s not super realistic. People are worn out from day jobs, or lazy, or too busy. You need time, some skills, and sometimes an initial investment. Besides these things, it’s also tough to find your niche. I invest in real estate but I want to do something more hands-on since I have some free time. I don’t really have a marketable skill, so I’ve started flipping furniture, or finding things for free that I think I can sell.
It’s very realistic and possible.
I make over 25k every month in just passive income and this has nothing to do with my actual job. The hardest part is the work it takes to get started. People just expect passive income to come without any effort.
I make good money now because I put in the work when I started. It’s possible and achievable. I took five guys with basic business knowledge and helped them earn passive income, some even more than me.
It’s definitely a proven idea, I’ve personally bought, improved, and sold five businesses that are all passive and I’m always looking for more opportunities. There are many options like SaaS, KDP, POD, blogs, etc. For example, I bought one that wasn’t doing well last year, and now it’s earning around $2k a month and still growing each month thanks to my initiative and skills. Best investment I’ve ever made honestly. I think it’s less risky than starting something from scratch.
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It is entirely possible but people want to skip the parts about working, saving, and investing. Are you willing to go through that
It’s not achievable for most people, half the population of America doesn’t even have 1000 dollars in cash! But if you start early, save a lot, and invest wisely, you can do it. Crypto seems to offer the best chances for average folks with more growth and yields than the stock market, but it comes with more risk too.
Passive income isn’t really achievable for anyone because it’s not real unless you count dividends, stocks, or owning a business which, apart from inheritance, takes work to get. Things like book royalties, blog posts, or indie game sales are even less passive. At best, this is deferred income, not passive, as you are just being paid over time for your hard work.
No. Most people get a dollar and spend $1-2