– Wow. You have to see this old picture of me. There is so much going on in this picture. At this point, I am still a
practicing financial planner, I am running that business,
which is 40 plus hours a week, I've launched my blog, and I'm spending 20 plus
hours a week with that. We just had our first child, and you can see him on my lap. I've got the Blackberry,
the old school Blackberry. I mean, this is multitasking as I'm trying to write a blog post. I can just remember how
insane I was at this point in my life. But I just thought that was the normal.
The truth is I was
connected to my computer. I was connected to my emails. Like I just felt like I had
to be plugged in all the time. Now it wasn't too long after this that I stopped focusing on how much I could make per hour, how much I could make per month. Instead, I started focusing on how much do I make when I'm not working. I started focusing on the things
that I could do for myself, for my family, for my business so that I was working
less and making more. Although I was familiar with the concept of trading time for money, I was smack dab in the middle of it, and didn't realize how much time I was actually losing. And that began a fun, but long and hard journey of understanding what
passive income really is. I had to make some really big changes in how I approached my business, how I approached investing, how I approach my time so that I could truly benefit of the value and awesomeness that
passive income offers.
Now, I don't know where you are in your passive income journey, but I wanted to share some of the ways that I'm able to make
right now, passive income, on a monthly basis. And I'm not doing this as a
flex or as a pat on the back, hey, look at me and how awesome I am, but I want to offer you encouragement and inspiration so that you can see that passive income is a reality, because I have learned the hard way.
Something that I've heard
often is knowledge is power. And in theory, that is true,
but in practice it's not. And the reason is because
knowledge is only power if you actually do something with it. So knowledge alone is not power. Taking action on that knowledge is. So today I'm gonna break down what are eight different
passive income sources that I'm making. You're gonna see the monthly amount, and I'm going to break it down so you can see how much in
passive income I make per day, just so that you can see what is possible. So if you're ready, let's begin.
(upbeat music) The way that I broke down
these passive income sources, the first four, I wanna start with these because these are ones if you are interested, if you've been talking about
starting passive income, adding passive income to your portfolio, adding it to your mix, these are four that you can
start implementing today. The first passive income
source that I receive is from dividends. Now, if you are newer to the channel, then you may not be aware of
the grow your dough challenge that I started last year. And the whole point of this challenge was I wanted to show new investors how easy it was to open
an investment account on your phone, on your
laptop, on your computer, deposit some money, and start investing
and start making money.
Initially it started with $1,000 deposited into various accounts. But then I recognize that
I've got way too much sitting in cash, making next to nothing. So I wanted to start putting
more of that money to work. And I thought it would be a fun experiment bringing you all along for the ride, showing as I build these
different portfolios. And one of the portfolios
that I wanted to construct was a dividend portfolio.
And the reason being is that most of my stock holdings up to this point have been purely growth. I don't think I have any stocks right now that pay any dividends, at least up until starting this challenge. So the platform that
I chose was Robinhood. This was the investment
app, easy to set up. And I opened a Robinhood account. Initially I put in $100,0000, then I ended up putting more, and I have to admit that I, it took me a while to
get anything invested, and I'm actually
embarrassed to admit this. I have more sitting in cash still in my Robinhood account than I should. Right now it's showing me
here that my buying power is $138,000, which basically means that I've got $138,000 sitting in cash. But I have invested some of that. And you can see some of
the holdings that I have, CRON, GoPro, American
Express, Cannon, Verizon, Starbucks, Lowe's, et cetera. So you can kind of see
some of the holdings here, but what we're talking about right now is with our dividends.
So looking at dividends, how much dividends am I actually making from my Robinhood account? Now with some of these
dividend paying stocks that I have purchased, some have been bought
in the last few months. So I haven't received a dividend
payment on all of these, but just looking here
at the recent history. So December the 10th, Target paid me $17 for their quarterly dividend. I got a dividend payment
from MRO for $0.03. Another small dividend from T-R-O-N crock. So I think these are all
free stocks that I received by those of you that have opened a free account with Robinhood, and by the way, if you want to do that, check out the link in the description. You can open up a free
account with Robinhood and also get some free stocks. Starbucks pay me a dividend of $13.50. I've got American Express here, AMP paying me a dividend of $52. Now we're talking.
We've got another, PVCT
paid a dividend of $72. Lowe's paid a dividend of $12. And then Verizon, $31. If I go back even further, I've got dividends from Footlocker. I've got dividends from
Bank of the Ozarks. Dividends from Target, also PFG. So there have definitely
been some dividends paid out over the last few quarters. And if I add all of these up, this is the amount that I get. I get about $380 a quarter, which breaks down about $127 per month. Now, obviously, if I put
more of that money to work, took it out of the cash, and put it into something
paying a dividend, that should be more. And the goal here is actually I want to build a portfolio that's paying $1,000 a month. So that is the target. So have some more work to do, but I'm still receiving some
dividends from another source.
The other account that I
opened with is M1 Finance. So with M1 Finance, the idea there was I wanted to build a portfolio
that was more growth oriented. So I chose more tech stocks like Tesla and Zoom,
PayPal, Apple, Amazon. Now the good news is that that
account has done very well, which I'll mention here in a second. But in that portfolio, some of those funds also pay dividend. Now that's just because I've got Nike, and also have Apple. And they don't pay a huge dividend, like right now Apple pay
looks like a $14.61 dividend, pay that quarterly. And then the Nike dividend
paid, check it, $13.77. But I do own a few ETFs. I've got some allocation into bonds, some short term bond funds. So that totals about $24.71 for the PGIM ultra short bond ETF. And that is a monthly, since it is an ETF.
I also own the Vanguard
intermediate term bond fund, that pays $64. On average, I'm making about $97 a month from dividends on my M1 Finance portfolio. Now I wanted to point out the M1 Finance account
shows this is how you truly make money in the stock market. You know, dividends aren't the only way. So initially the whole point
of the M1 Finance account was to invest, as I said,
more into tech stocks, more growth oriented, but I wasn't ready to put
all of my money in yet. The thought was I was going
to dollar cost average. So right now I still have 50%, half of the portfolio allocated to a Vanguard short-term bond fund and the ultra short-term bond fund. And the rest of it invested
into Amazon and Tesla and Nike, and Facebook and Google and
Dropbox and all of these, which as we, or maybe you don't know, a lot of these stocks have
crushed it over the pandemic.
So this account right now, even though half of it was
invested very conservatively, I am up $53,000 at the
time of this recording. I mean that is a good return
in a short amount of time. Now I'm not going to include
the gain from the stocks as part of this calculation, 'cause we're talking about passive income, and I'm talking about dividends. So right now with
dividends between Robinhood and M1 Finance, we're looking
at about $224 per month. All right, the second
passive income source that I make is one that
we all want to maximize. We want to make sure that we are earning as much on our cash as possible. And I almost feel like a counterfeit. saying this because I've
had a ton sitting in cash, making next to nothing,
which I've shared before. But right now I have a few
different savings accounts.
We savings accounts, we have business checking, various checking accounts, but my biggest savings account right now has just over a half a
million dollars in it. And it's with a big national bank. I'm not gonna say their
name, I'm going to be nice. And I'm sure if you have an account with a big national
bank, you feel my pain. So in this account right now, there's just over $513,000. And it paid the month of November, an interest payment of $22.43 cents. So that is just another
passive income source. $22.43, like what the hell? Are you serious? What? Now there is a reason
that we have so much cash, I'm a big proponent of what's called the barbell investing strategy, and you can check that video out where I alk more about that. But in a nutshell basically is that I like to keep a lot in cash because everything else
is much more higher risk. Another reason why I want
to do the dividend stocks was because I wanted to do something here for the YouTube channel, I thought it'd be kind of fun
that you could follow along.
But for the most part, everything else I invest
to is much more aggressive. Case in point, the next interest
account I'm gonna mention, which I mentioned in a previous video, is talking about BlockFi, which is a crypto
currency savings account. Now right now I have $25,000 deposited with BlockFi, and at the time of this recording, I just received my
second interest payment. And this really just blows me away, because once again, I deposited $25,000, I'm sorry, it was 10,000, then I added 15. I've had this account
now just for two months. So two months I've made
a total of $226.52. But the first interest
payment was just on 10,000, so the second was on 25. Right now the only thing that I own in my BlockFi account is USDC. So I don't own any Bitcoin, I don't own any Ethereum.
So the first interest payment
I received was $69.88. So right now I'm figuring that I am making about $156 a month on my BlockFi account, and this was for a $25,000 account, compared to my other savings account that has over half a million, $22.43. So do you think I need to deposit more in my BlockFi account? Now, that being said, BlockFi, there is no FDIC insurance. This is definitely much more higher risk. That's why I'm making, I think
it's 8.6% on my USDC coin. So that is why. Nonetheless, that's a lot more than my savings account. Okay, I need to move on. All right, the third passive income source that I make is from real estate. Now I am not a real estate investor, as in I don't own any condominiums, I don't own any townhouses. I don't go out and flip houses. I'm much more the real estate investor that likes to do it sitting in my chair. And there's a few different
ways that I do this. I have some private
real estate investments, one of which is a residential property. It's invested through a private REIT, a real estate investment trust.
I also have an investment
into an apartment complex, which is called, it's through
Mission Bay Capital Partners. In each of these, I was approached by a real estate investor
that was in my network. Now the second one, which is actually a
larger investment for me, I have not received any
dividend payments yet, but the first one I have a dividend that goes directly to
my Wells Fargo account.
This is where I have my
self-administered 401k plan. One of the places I have my 401k at. So each and every single month I make $116.66 from that
private real estate note. And I have been receiving this
for, it's been a long time. I don't know how many years, it's been several, several years. I think it's about a 7% yield
on my initial investment. So 116.66 there. Now for many of you, you're like, well, I don't know any private
real estate investor so how can I do this? Well, another way that you could become a real estate investor is through crowdfunding online platforms. One of the most popular
online platforms is Fundrise. Fundrise is very similar
to the Robinhoods, the M1 Finances of the world, where you could actually start
investing through an app, and that's what I started with. I can't remember how much
I opened my account with. You know, right now you can
get started with Fundrise with, I think, a minimum
of like $500 to $1,000. And it's very similar
to the REIT I mentioned. So how this works is that you put money in to a Fundrise account, and then you are letting the Fundrise team manage real estate properties for you.
And they will show you
like different listings, all the ones that your
portfolio has acquired. I'm looking at one right now. This is a new acquisition, an apartment renovation in
Charlotte, North Carolina. And it gives you the structure. It gives you a rating. It gives you a projected return. Here's saying 8.4% to 12%. It'll give you a progress report on properties that you own. Here's one, renovations complete on Jacksonville, Florida apartment. This is the one I saw here recently, back in October, where it shows a new acquisition. Rental town home community
in Nashville, Tennessee. This one's kind of cool because this is literally 30
minutes from where I live.
So if I actually wanted to
go see this property I could. Anyway, just want to give you some information about Fundrise. But let's actually talk
about the dividends, and how much I am making. So right now, total account
value here is $8,656. And we start looking at the performance, so you can see my net
returns of $1095 there. It shows me my year to date returns. I'm more interested in the dividends. Like how much dividends am I making? I can look at the transactions here. So back in October, there
was a long-term growth dividend reinvestment. There was $58.74. Looks like about it right now with the dividends on
the fund rise account. This is not including,
obviously, appreciation. You know, if any of the
properties are going up if they go to sell them, at least it gives me an idea how much I'm making in
dividends on a quarterly basis. So I went back and looked
to see how much in dividends have I made over the past year.
That's about $522 divided by 12. On average, it's about $43 a month that I'm making on dividends
from my Fundrise portfolio. So in total it's about $160 a month from my real estate investments, which is just about $5 more than what I'm making from my BlockFi. Are you serious? (laughing) Yeah, that's the truth. That is the truth. Number four is one that I'm hesitant to include here as passive income, but there definitely are elements
of this that are passive. And that is my YouTube channel and revenue that I make from YouTube. So with this number I am just
looking at my YouTube ads, all the ad revenue that most
people are familiar with. I'm not including any
affiliates, any core sales, any brand deals that come
from the YouTube channel.
Now with YouTube,
obviously, like right now, I am recording a video for YouTube, there is nothing passive about this. But there are videos
that for whatever reason YouTube likes them, they get engagement, they get traction, and they continue to get
traction for years to come. And I mentioned this in my previous video of 10 different ways
to make $1000 a month, which you need to go
check out in that video. In that video I shared
there are two videos that I recorded two years ago that I have not promoted. I don't blast them to my email list. I don't promote them on social. Either way, just those two videos alone bring in about $1,000 a month. Now, if you look at the revenue I make from my YouTube channel, I
mean it's almost embarrassing when you see all these other guys like Graham Stephan and Meet Kevin, and all these guys that
are crushing it on YouTube, making six figures a month. – We have made to date $4,790. And in this video that we
will get demonetized in…
– And you can look at my
channel over the last 90 days. Yes, I got 1.2 million
views total for 90 days. And I made a total of $17,379. So if you look at my monthly revenue, you can see in September I made just over 6,000. And right now that's what I'm averaging, five to 6,000. I know earlier on in the pandemic I was up between that 10 to $15,000 mark, and just kind of changed
the types of videos that I was publishing. Not as much stimulus check video. No judging, no judging. I mean, it pays good money, but for the sake of this calculation I'll go ahead and round down. I'll just say on average the YouTube channel is bringing
in about $5,000 passively. Moving on to number five. And I'm sure I probably said that this is my most favorite passive income source, and this is from my blog. So I have a financial blog called goodfinancialsense.com. You can go check it out.
Tons of great personal finance, investing, financial planning articles. So this blog was launched
over 12 years ago. And there definitely are
aspects of it like YouTube that aren't passive, but it is so much more passive
than my YouTube channel, just because I have published so much content over the years, and we can update the content. We can add new links, add new figures if need be. But I have a team that's in place that takes care of all of that. Now with my blog, and many other blogs, I mean, there are different ways
that we can make money. As far as the passive income streams go, most of that is through
affiliates and some banner ad. I do get brands, sponsorships and sponsored posts,
which pay a sizable sum, and I don't wanna include that here, but with the blog, mostly it's affiliates.
That is the big driving
force of the revenue. And just being a personal finance blog, those affiliates include
investing companies, have your insurance companies. You've got your big banks. I mean, all of these financial companies have deep pockets, and they are willing to pay to get in front of my audience, or any audience for that matter that is talking about personal
finance and investing. We have a few different campaigns going on the site right now, and the numbers I'm
going to share with you, just so that we are fully transparent, these are not net numbers. You know, there are costs
associated with these figures, but the beauty of having
the online businesses, that expenses here pale
in comparison to a brick and mortar business, and I can speak to that since I did have a financial planning firm. So I know what the costs were there, and it is a fraction
of the online business. All right, so that being said, one campaign, we had just
over $32,000 in revenue.
You can see a one day here we made just over $1,800 on the day. On the other campaign, we made over $281,000. As you can see on the graphic there, $12,000 was just not an average day, but one of the higher days. This is for the month of October. But we go ahead and just
round those numbers off, we're looking at $310,000 for the month. So that comes to about $10,300 per day. I don't care who you are, that's a pretty dang good day in my book. Now, the funny thing about
these numbers, I mean, it's really not that funny, but just is a reminder
of how grateful I am to have this business is that one of these campaigns, we are down.
COVID, the whole pandemic has affected this piece of the business. Either way, we have
found ways to diversify and add additional income streams. So definitely not complaining, but definitely also
looking forward to 2021 and beyond to see the
numbers where we were just earlier this year. I wanna say again I started this blog over 12 years ago, and there has been a lot
of time, blood, sweat, tears into building it
into what it is today. So this is something
that you just don't start and expect to make an extra $1,000 a month passively tomorrow. It can be done, but it
does take some time. Now, if you've been
kicking around the idea of starting a blog and you haven't taken action yet, I'm gonna give you a resource so that you can stop making excuses. You can go to make1Kchallenge.com, and this is a free email
series that we offer that shows you how to
get your blog started, get it set up, publish
your first blog post, and give you tips and strategies how to make your first $1,000.
So if you wanna sign
up for that challenge, go to make1kchallenge.com,
get on the email list, get that blog going. All right, moving on to number six. So number six is really just
an extension from the blog, extension from the online persona, and that is with online courses. I mean, you can't be an
online personal brand, an online influencer and not have a course. Now for me, the very first
course that I created was this one. This was the online
advisor growth formula. And this was a course
that was geared towards other financial advisors that
wanted to grow their practice utilizing online marketing. This is a course that I created, gosh, almost three years ago. I'm not actively involved in it. I gave it to one of my star students, and he's actually managing it now.
And I'm getting paid a royalty, a residual on all the income. Right now we actually have a launch going so we haven't really
promoted it all that much, but just in the last few
months, like I have a sale for, I think it was $2,000 last month. So the fact that I'm still
making money from this course that I haven't done anything with, haven't promoted in several
years, is a lot of fun. Now the other course that I have, this is one that is relatively new, and this is called Passive 1K. And this is one that I
am just now promoting.
It's been done for a little while. I've just been a little gun
shy actually promoting it. But this is basically
a course I show people that want to start not just an
online business with a blog, but also show you how you
can set up the systems to where you're not working
80 plus hours a week, and you start making passive income. So, once again, this is something that I haven't really
promoted all that much, but just the last month alone I think it made just over $3,000. So the grand total with these is just under five grand, ends up being about $160 a day. And that's with zero to no promotion. And it's just one of those things. I'm like why don't I promote this stuff? I don't know, that's a whole other story.
Either way, online courses, a great passive income source. Actually I have another one
that I'm working on right now that I can't wait to share. Moving on to number seven. And number seven is exciting because we're not talking about dividends or interest, what we're
talking about is royalties. So with royalties, usually that comes from music or writing a book. Speaking of my book, let me
go ahead and grab a copy. (upbeat music) All right, so here it is. This is my book, "Soldier of Finance." This was published, I
believe back in 2013, which seems like ages ago. Now with a book, if you get it published through a publishing house, they'll typically pay you up front.
That's what happened here. Now I didn't get a huge advance up front. I did get something. I was just excited that
somebody was willing to pay me to publish my book, which they did. But the other way that you
can make money with the book is through royalties. Now I'm not making a lot of money. The thing that was exciting though, is whenever I relaunched
my YouTube channel just a few years ago, I saw an uptick in book sales. But like my courses, my book is something that I don't promote a lot. One, it's seven plus years old at the time of this recording. So you can see that for a
period in the month of November I sold two.
That's right, two copies. And right now my book ranks on Amazon as the 227,000th most popular book. I mean, do I get a trophy for that? Now obviously I am not
making a lot of money, a lot of passive income
from my book sales. I think the last time
that I got a royalty check that was something worth mentioning was I think it was like 160 bucks, and that was not for a month, I think that was for the quarter. So that means on average I'm making about a $1.83
passively from my book. So if you wanna go buy my book so I can increase my
daily passive income rate, I would be very much obliged. You know, honestly, I'd rather you just smash the light button and
subscribe to the YouTube channel. – [Like Button] He likes it. He likes it. (cheering) – The last passive income sources, and this is, once again, is one of my favorite, but it's not the largest. But this one is from selling my financial planning practice. And why this is so exciting
for me is two-fold. One, you get a nice little snapshot of my unfinished pool house.
This door is actually going in tomorrow. Upstairs are going to be the new office, the new studio, can't wait for that. But that will be a another video. Why I'm excited, because I get this check, so it was $10,700, and
it varies month to month. Now that is about an
average size that I get. So the way this deal was structured, I got some money up front, and the rest of it is paid
over a seven-year period. Why this is so exciting for me is because it is the online business. It is what I set up with the blog, with everything that I have going on that allowed me to sell the
financial planning practice. Now doing what I absolutely love to do, getting paid more money, and I'm still getting
paid from the business that I haven't been involved in in two plus years or so. So yeah, $10,700 works out
to be a good chunk per month. I actually have a tally here. It comes out to be $350 a month from that.
So if we add up all the
passive income sources, we're looking at $331,000
for a month divided by 30, gives us a nice $11,043.43 cents per day. I mean, that is some good passive income. What can I say, I truly enjoy not just getting the money, but living the lifestyle
that comes along with it. I mean, don't get me wrong, there is things that I still have to do, but there are things that I
want to do, that I enjoy to do. And I've got an amazing
team that supports me, and allows me to operate
in my zone of genius. So I'm not stuck doing crap
work that I don't want to do. If this was in the summer, I
would go and jump in my pool, but right now it's a little cold. Anyway, hope you enjoyed this video. If you did, you know what to do, smash that like button, subscribe, hit that notification bell.
I've got more videos talking
about passive income, and just really how I've
structured everything. And I'm not, I'm not a unique story. There are others that have built
a similar type of business, a similar lifestyle. And my goal with the channel here is to show you more of that, give you the tools and the
resources that you need to hack your wealth and
enjoy life along the way. All right fellas, this is Jeff Rose reminding you that it's your money, it's your life, and only you can make it awesome. Until next, peace..