Dear First Mates,
Hope you are all enjoying the summer and are having a blast. I’d encourage you all to read this article that I shared. It is pretty long but well worth the read. The conventional wisdom I still support is to save at least 10% to 20% of your paycheck and invest it in the public markets. After 30 years of doing that, you know your entire retirement and draw that account until you either pass or run out (heaven forbid).
I read a great article, “31 Passive Income Ideas To Stop Trading Time for Money, ” which shows other ways to generate passive income. The gist is this: Cash flow (as opposed to cash) is king. We all have monthly income sources and monthly expenses, which will never change. People should focus on building up their monthly passive income, and investments (albeit traditional or alternative investments) are only one-quarter of the pie. The author explains that there are four types of passive income.
1) Buy cash-flowing assets
2) Build cash-flowing assets
3) Share or sell assets
4) “Reverse passive income”
While my industry has done a fairly good job of helping investors buy cash-flowing assets, I think types 2, 3, and 4 need to be considered. You are, after all, only truly financially independent if you have more passive income than actual expenses. I hope this article gives you some good ideas for increasing your income!
Dave’s Picks
Frank Ocean- Novacane (Official Video HQ)
Katee & Joshua – Hometown Glory (SYTYCD-S04E12)
The Fly (1986) Trailer #1 | Movieclips Classic Trailers