(Part 2) Passive Income: 5 Ways I Make $1,000 Per Month

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So let's move on… the next passive income
way or the next passive income stream is "Royalty Income." Royalty Income
basically the difference between royalty income and residual affiliate right is
an affiliate you're gonna promote a product you're gonna promote somebody
else's product right and then once you they make that sale or you make that
sale then you get a commission. In Royalty it's basically your product you
created the product but you have somebody else sell it for you
right so when they sell it then you guys share the profits and you make a royalty
fee whatever it is right now beauty about royalty payments is that all you
gotta do is put in the word to create something and then you just hand it off
to somebody else to sell it for you.

Now the System in place for this one is
called "Amazon Publishing" right. I'm pretty sure you guys all know who Jeff
Bezos is right? If you don't, I don't know what planet you from but, Amazon
Publishing is an awesome tool right. So the products I created and started
selling on Amazon are books right here are two my books so all you have to do
write is actually created you do it right on Microsoft Word you create your
your book right you rent your book it could be whatever it could be a how-to
book anything that you know you're good at and is in big demand right something
that not that people need remember at the end of the day right just you gotta
be creative right and you'd be surprised like when I know when I started I never
thought that I'd be able to write a book right but I just started thinking like
okay what am I good at and what may be something that that that can help
somebody else right and by the way the product that I use to learn about no
writing is called the "Author Academy" right.

I highly recommend it!
Yes, it costs a little bit of money but the good thing is there's a ton of
information that you'll get from them for free right so have no fear you can
learn a lot just the free guides and videos that they
provide you right it's not from Amazon right it's called "Author Academy". And
again you know… just grab my book and I got all the links in there. So if
you decide to go with an educational tool it's called the "Author Academy"
right.If you don't… no worries right. But the reason I like Author Academy is
because they taught me exactly from scratch how to set up my document right
because there's gonna be like certain measurements and margins and how you set
up the table of contents and all that because once you download it into the
Amazon publishing you can do too it's actually this three right not only will
Amazon create a digital copy of your book and promote it for you but they'll
actually do like I just showed you the physical copy right Amazon did it I
don't have to worry about publishing printing you know making the physical
copies and selling them Amazon is doing that for me they then go ahead all you
have to worry about is making sure you you know you fulfill their requirements
as far as the parameters of the actual document right and you upload it right
into their publishing I mean it's a no-brainer so we just imagine one book
right with one book I'm selling a digital copy I'm selling a physical copy
and they even have audio versions right so you could have just from one book you
got three different streams coming in so imagine if you have two three four books
right see where this is going so I mean you'll be surprised oh and
from the author Academy right like one of the guys that are teaching you in
there it's a step by step they teach you exactly how to get ready you know when
when you start creating your actual book they tell you how you start marketing it
from like a pre-launch type of marketing and then you know how you upload
everything into Amazon and then how you eventually go after you market it right
because I don't only depend on Amazon to sell my book right I promote my book
also many of you who may be already aware that you know on my social media
pages I promote the book also right but I don't have to be on top of my
the media pages everyday posting you write what did I do
I tapped into another system where I can just upload all my images my legs my
hashtags and schedule my posts throughout the year right so that's
another system that I'm using and that way I can just upload all that
information and by itself like clockwork it keeps promoting my book on all my
social media pages and then you got to get smart with your hashtags and
everything right Amazon is also going to promote it on their own website so not
only are they doing it for me right and every time they sell a book
they paid me a royalty but I'm also promoting it myself right but I'm not
physically having to do the work because I tapped into a system that's doing it
for me okay.

So let's move on… the next passive stream of income is called
"Interest Income" some of you have may have already seen it I'll put a link up
here. One of the videos I made is called "Bad Credit Loans" okay, where I'm teaching people with bad credit how to get personal loans. And the source, or the
System I'm using is called "Lending Club" right.

For those of you that are not
familiar with them just think about it like this right this is where you become
the bank so think about it like this right most of you probably you know
stashing your money away you know in the secure Savings Account, maybe a CD, and
maybe you're earning at most maybe 1 to 3 percent on your money right in
interest. And then what does the bank do? They turn around and then charge you
5 to 6 percent. But nowadays I think it's maybe like a mortgage, it's probably
around maybe like 4.75 to 5 percent… and that's if you've got
outstanding credit right. But for the rest of the people out there that don't
have perfect credit right they got to pay what six percent, 5 to 6 percent
alright. So when you think about it, the banks while they're doing is yeah sure
they're more than happy to take your money right so then what they'll pay you
maybe one to three percent and the savings account or CD and then what
do they turn around and charge you maybe five to six percent just to borrow your
whole money back well maybe not your money but you know what I mean right so
this is where you become the bank right you got to start thinking like the bank!
So basically what Lending Club does is it'll bring together a bunch of
investors that want to earn more on their money instead of trying to stash
their money away you know in the regular savings account just collecting dust
right wealthy people know they make their money work hard for them because
"If you don't inevitably, you'll have to work hard for it!"
Okay, so Lending Club again…

All they do is bring a bunch of investors that want
to lend their money and earn them a higher percentage of interest on their
money and then on the other end there's a bunch of people that need personal
loans but their credit might not be in perfect shape and can't go to the
customer means like a bank or whatever to get a loan right so this is the
perfect place right where they marry the need of people needing alone and
investors that want to earn a decent return on their money. So again remember,
I'm gonna make more videos to go into more detail of how exactly I implement
each and every strategy and system right in the upcoming videos, so don't forget to
"Subscribe" okay.

And also on the link below I put for the book, I also go into
detail exactly how I do it okay. So let's keep moving… the next passive income
stream is "Dividend Income." Many of you already familiar with this right.
Just in case you're not… it's about stocks. Some stocks actually pay
out dividends right. And what a dividend this is basically where a company shares their profit with their investors right. So some companies want
more money coming in more people investing and the way they entice people
to do that is by paying out a dividend. So this one actually I just started this
one last year I want to say like maybe around June July and but it's it's
starting to rock and roll it's already like you know you got a picture I don't
know if you guys are familiar with "Compound Interest." Picture a small
snowball at the top of the hill right, and it's starting to roll
down the hill right…

So in the beginning it's kind of small right and…
it's nice and slow rolling. But as it's going down the hill, it starts getting
bigger and bigger and bigger. And as it's going down, it's just getting faster and
faster and faster! So it's the same concept right. With Dividend Income, all
you're doing is you're buying stocks that pay out dividends and it's not just
any stock you're gonna buy stocks that are Proven to pay out dividends right!
And the System I'm talking about is called the "10-11-12 System." And
the book I read…

I actually got it here right it's called, "Get Rich With
Dividends." The author's name is Mark Lichtenfeld.
Don't kill me if I'm not pronouncing that right. But it's an awesome book! I
started reading it and I couldn't put it down.
And and what the system was basically telling you right it's the "10-11-12 System," and of course… this is an excellent excellent passive income
system and tool to have especially for Retirement! If you got time, because
the "10-11-12 System" right, it's about time! So the more time you have, the
more money you're going to make right. And you'll be surprised like a
difference in five to ten years can be a difference in millions right this
strategy alone can make you a Millionaire in Retirement! But again you
don't have to right.

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If you want to do this and you know collect income now,
you still can right. It still could be another excellent way to produce passive
income. But I'm using this one both not only am I using it you know to make
money now, but I'm also implementing this as my retirement plan in a "Roth IRA"
right. Roth IRA is basically you pay taxes now so when it comes time to pull
out the money it's all tax-free so all the interest you're making throughout
the years once you retire in the Roth IRA it's all tax-free money so I put two
and two together right not only am i using the system but I'm also adding on
top of that putting it inside a Roth IRA.

So I'm producing income now, and I'm producing income for my retirement. And the
10-11-12 System all it is is… it's basically ten years right, the ten is for
ten years eleven represents the dividend yield after ten years so after ten years
your dividend is gonna grow up to be better percent then the twelve is twelve
percent overall right because remember you're not just making interest or our
dividend yield when they pay out dividends you're also making or earning
capital gains right because hopefully you're paying or you're buying the stock
when it's kind of low and by that time it's going to increase the price so
overall when you include capital gains and you include the dividend growth it's
going to be twelve percent so as you can see more weight is put on the dividend
growth and it is on national capital gains because if you think about it yes
the stock market is going to go up and down but you want the price of the stock
to go down so you want it to go down because when it goes down guess what you
can buy more stocks right.

Part of the system is automatically reinvesting your
dividend. So if you don't want to take out the money now that's why I'm saying
this is great for retirement because if you use the system right right and you
reinvest the dividends remember like I said it's that's "Snowball." You keep
reinvesting, reinvesting, reinvesting the dividends and that thing just turns into
a monster and it has a mind of it's own right, once it picks up speed. And it
picks up speed with time! So if you're like in your 40s this is perfect for you
right if you're in like your mid-40s right because this really takes over
it's a ten-year kind of strategy but this really takes well for my year 15 or
20 and I put a chart in the book so you guys can actually see what I mean right
again smart money would be to put this in the Roth IRA so that way once this
thing becomes huge to have a minds over goal once it's time for you to retire
you have it within the Roth IRA so you could stop automatically reinvesting
it right and I use a TD Ameritrade by the way right it's a stockbroker I used
to buy the stocks and in their platform right you can automatically select to
reinvest the dividends so again right use the system I used TD Ameritrade the
charges I think is like $6.95 per trade but I used their system to automatically
reinvest the dividends for me because the beauty…it's called a "DRIP": d.r.i.p.

The
beauty of a DRIP is that you know for a stock ran let's say the stock price is
$10 you can't buy that stock until you have another $10 right to buy another
share stock the beauty about dividend reinvestment or the DRIP is that you
don't have to wait until you have the full amount in order to buy another
share so in my example of $10 if the stock costs $10 you don't have to wait
until you've accumulated enough dividends to equal $10 before you can
buy another share know with your drip you can buy fractions of shares! So you
see where this is going? So as we're slowly going downhill right my little
"Snowball," and that dividend reinvest is slowly but surely over time…

It's picking up more fractions, more
fractions of shares, more fractions of shares. Before you know it, this thing is
off and running right. And another tip, if you guys have kids this is also great
for a "College Plan!" So if you guys have kids you know this is a great great
strategy or system to use to build that College Fund for your kids because if
you start, especially when they're young right like I said, this really takes off
about year 15-20 right. And just imagine… I didn't even talk about investing more
money I'm just saying if you're smart I think in the book they give an example
if you start with $10,000 but you don't have to.

Let's say you start with $1,000.
You start with $1,000 right, and assuming you're just gonna reinvest
the dividends right.. it's gonna grow. So by year 10 you're gonna double right. By
year 10 that $1,000 you're gonna double it and not only that but
now you've got a lot more income or dividends coming in. So with
$10,000 the same thing, in year ten you're gonna double it but, in year 15
year 15 it's like five times as much! So you see it took ten years just to
double it but, by the time you get to fifteen it's almost five times as much.
If you get to twenty, twenty years…

Just check out the graph or the table in the
book, that way you guys know exactly what I'm talking about right. But again this
is an awesome strategy especially if you're young and you got time even if
you're in your mid 40s right this is the awesome tool to do so you can start
planning for your retirement. But you don't have to necessarily wait till you
retire right. You could use it now right. It's still just another form of passive
income. And the stocks were choosing are gonna be from companies that have a proven track record right. You're not just gonna pick any random company and hope that
they keep paying out dividends for another ten to fifteen years.

No! We're gonna select proven companies that have a proven track record of paying out
dividends right. The good thing about that is that there's a list already made
for us so we don't have to go crazy you know ripping our hair out trying to
research which company to get there's already a list called, "U.S. Champions," I
believe it is. And again the link is in my book. And the "U.S. Dividend Champions" it's already proven track record of companies that have 25 years or more of
paying out dividends. So think about it, we just you know we just happened to
recover from the whole housing crisis and the market crisis and all that so if
these companies made it through all that and we're still paying out dividends and
not only paying them out but also growing them right which is another part
of the strategy right so I highly recommend that you guys read the book
also right.

I'll put a link below you know so you guys can grab the book
because of course, there are other little intricacies that go into
selecting which company right. But for now, I'm just giving you you know the
overall… The "Overview" right. So again Dividend Income. This is excellent for
you Retirement as a Millionaire right
because once you hit retirement right you could stop the dividend reinvesting
and now it's just paycheck coming in right. So you can live off of, besides
all the other ways that you make you money. Again if you guys have kids, this
is an excellent strategy for you to use to start building that "Nest Egg" for
your kids… For that, "College Fund!".

As found on YouTube

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