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What does you being rich have to do with generating passive income?
by HiroshiSan 8y ago
What does you being rich have to do with generating passive income?
- marssaxman 8y agoHow else would you do it? Don't you need to own some asset from which you can extract rent?
- ghosterrific 8y agoBeing rich is not same as having passive income. Own 1 Share of AAPL and you will get about 12c/month in passive income.
- scott-smith_us 8y agoRoyalties from a book or patent or software?
- deleted 8y ago[deleted]
- cimmanom 8y agoYou do, but not all such assets are expensive (in money - most cost a significant investment of time up front to create). Intellectual property (apps, writing, music) is a popular one. A more concrete example with relatively low capital investment (say, within the reach of someone with a 5-figure income) might be a rural highway billboard, or a snow-blower that you rent to your neighbors after storms. I remember reading a story about someone who built a miniature vending machine empire. Often, extracting rent from such an asset takes some small amount of ongoing work (ex: marketing; app maintenance; pasting new ads onto the billboard; refilling the vending machine every couple weeks), but such work is either relatively infrequent or scales your income much better than being paid directly for your time does.