How To Build Passive Income From Zero By InvestingMay 07, 2023
Hello Stoic Investors,
Today I want to focus on how you can build your own passive income stream.
I get it. Earning money is hard.
And it’s even harder to earn money passively.
Unless you have the right strategy.
No one will pay your bills.
The sooner you realize that, the better.
So, it’s time you block the pessimism and start building your future.
How does $35,000 per year sound?
Let me show you how to get there.
And no, this is not a “get rich quick” scheme.
Step 1: Define your goal.
Figure out how much you need in order to live peacefully. I took $30,000 for this scenario but feel free to pick a higher/lower number.
Step 2: Find some extra money.
Lowering your expenses is good. Earning extra money is great. Doing both is absolutely amazing. Here is a pro tip for you: capitalize on your knowledge.
Step 3: Open a brokerage account.
This is basically an account where you can buy and sell investments. This website will be of great help: https://brokerchooser.com/
Step 4: Pick the right investment.
This will depend on your risk tolerance and time horizon. If you’re in it for the long haul, I think equities are the best way to scale. And the easiest way to scale with equities is by buying low-cost index funds such as $VOO (Vanguard S&P500 Index Fund).
Step 5: Automate & upgrade.
Firstly, automate monthly deposits from your bank account to your brokerage account. Secondly, automate monthly purchases of your chosen investment inside your brokerage account.
Step 6: Increase your income rapidly.
The best way to allow your wealth to grow faster is to get more money invested. However, in order to do that, you need more income. Therefore, I’ll share a list of 50 awesome side hustles for 2023. Stay tuned.
Step 7: Go hard.
Find every possible way to stack your investments. You’ll thank yourself later.
Step 8: Be very patient.
Financial markets can feel like a roller coaster. That’s normal. However, in order to enjoy the long-term benefits of that, you need to stay invested.
Step 9: Retire early.
Yes, it’s possible. Once you investments grow, they’ll be able to sustain your lifestyle.
Now…are you ready?
Show me the numbers
Let’s say Jared is a 25-year-old accountant. At first, there is nothing special about him.
He’s just an ordinary guy doing an ordinary job.
But no one knows Jared is secretly stacking his investments.
At every paycheck he’s putting $550 into a simple S&P 500 ETF.
But then one day Jared doesn’t feel like working anymore.
So, he opens up his brokerage account and BAM!
$1,243,268 is sitting in his account (assuming a 10% annual return). How did he do it?
He was patient. It took him 30 years but he’s now able to retire.
Every year, he can withdraw 3% safely from the amassed portfolio.
This means +$35,000 in passive income!
Just take a look at this.
Are you ready?
Anyone can implement this strategy.
But not everyone will succeed.
Because it’s easy to stray.
Financial gurus will try to sell you complex investment you won’t understand.
You won’t be patient enough. You’ll skip the monthly payments.
Don’t be that person.
This is your future we’re talking about.
So, note down these points and start investing today:
- You don’t need complex strategies to build passive income
- Wealth grows from consistency and patience
- It’s perfectly possible for an “average Joe” to retire early