Making money work for you is one of the rules of rich people. I’m still learning exactly what this is, but the idea is that rich people don’t trade their time for money. They acquire assets that provide them with passive income.
I heard a man say that “wealthy people own stocks, then they start a business, then they get into real estate. Stocks and real estate are both forms of passive income, and a business can be passive, although not always.
I’ve been on the passive income train for a while, now, but I’ve really been looking at the big picture lately, and I’ve been trying to figure out how to make passive income through real estate. If you buy a second house, it’s just a house, right?Well, yes, but it doesn’t have to be a house. I think I finally figured it out tonight. You can buy buildings and/or businesses, and they pay you every month- either rent or profits. You mostly just sit back and watch. Maybe check up on the place weekly. This is one of the “secrets!”
I’m currently in the stock market (with Acorns, which I love because it’s so hands-off), and I’m working to get my online business up and running (which is a passive business designing coffee mugs). Once those begin giving a good return (and I expect them to in about a year), I need to continue on with real estate. And I’ve really been scratching my head on how to do this. But it finally dawned on me: buy one of the businesses in town.
I know it’s not quite that simple, but I’m not planning on this for the short-term. Wealthy people tend to play the long game. (Ever wonder why Monopoly is such a long board game?) And buying a business is certainly a long game to play. I’m thinking that in a year my family will be bringing in enough passive income that we can take a comfortable vacation. Then, I want to begin researching businesses near me. It’ll take a few more years to gain enough capital , but I want to own a business/ business building within 5 years. (Even if it’s super small. You have to start somewhere.)