Wednesday, September 05, 2007

Ideas on Income - Passive, Primary versus Side

This is how I see it....

The ideal income would be Passive Income. This is what a high percentage of retired Americans use to fuel their retired lives. A 401k or some retirement plan of that nature. A growing number of unlucky Americans that live beyond the age of retirement are forced not to depend on this but instead of Primary Income. Understand that I am lumping Portfolio Income under this umbrella as you don't have to put effort into collecting a dividend check, interest off of savings, or royalties.

Now here are some sources of Passive Income that interest me:

  • Dividends from stocks
  • Royalties from writing a book
  • Offering services that do not require your presence or interaction to complete the transaction (ie a web store that runs itself with minimal upkeep or even better upkeep that can be out-sourced to Hyderabad or Little Rock)
Primary Income is the salary that you draw for doing your daily grind and insane commute. Not much to say in that area except that some measures I am taking to increase my Passive Income in the future might increase my Primary Income in the short term like Education.

Side Income is working at WalMart to catch up on bills, tutoring after school kids in French, or anything above and beyond your regular 9-5 job.

So with this said, I am going to build my new wealth of Mobility and Adventure Time through new forms of Passive Income.

Ok now what? Where do I go? Anyone have a good story idea?

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