TSI #41: The 5-minute strategy to create $30,000 in passive income per year
Apr 09, 2023Hello Stoic Investors,
Today I want to share a secret with you. It’s a secret that your government doesn’t want you to know. You can retire early.
Imagine waking up each day, free from the constraints of a 9 to 5 job and spending your time doing what you love most, traveling, spending time with loved ones, or pursuing hobbies.
How?
By earning money while you sleep.
As legendary investor Warren Buffett puts it:
“If you don't find a way to make money while you sleep, you will work until you die.”
So here is me showing you how to get $30,000 in passive income.
This is possible.
You don’t need complexity to make money.
Truth be told, most successful things in life are really simple.
And so is this strategy.
You only need three things. A strong desire, regular income, and a phone.
I’m pretty sure you already have all three so let’s jump right to…
The strategy.
Step 1: Find that extra money.
Each month, find a way to devote a few hundred dollars toward your future. You can do that by either lowering your expenses or making more money. I prefer the latter since there is no cap on how much you can earn.
Step 2: Open a brokerage account where you will be able to buy investments.
A brokerage account is very similar to a bank account. This website will be of great help: https://brokerchooser.com/
Step 3: Choose your preferred investment.
If your plan is to spend as little time as possible on managing your investments, I would suggest you explore index funds or exchange-traded funds. They are like baskets of investments. For example, when you buy a S&P 500 ETF like $VOO, you’re actually buying pieces of the 500 largest companies in the USA. That is a pretty popular choice.
Step 4: Automate.
Firstly automate monthly deposits from your bank account to your brokerage account. Secondly, automate monthly purchases of your chosen investment inside your brokerage account. This means you don’t have a single thing to worry about. Everything runs on autopilot now.
Step 5: Wait.
This is really the hardest part. Most people don’t have the patience to wait. But let me share a few numbers with you. If you devote $500 per month to a simple S&P 500 ETF, you’ll end up with a $1,130,244 in 30 years. Without lifting a finger.
Step 6: Enjoy passive income.
Every year, you can withdraw 3% safely from your amassed portfolio. This means +$30,000 in passive income!
It gets better. Even with your withdrawals, your investment will continue to grow!
Before you go...
A word of warning.
Many gurus on social media will try to convince you otherwise. They’ll try to sell you complex instruments. Avoid that at all costs.
Stick to this strategy and you’ll do better than 99% of highly trained professionals.
So, note down these points and start investing today:
- Find a way to earn money while you sleep
- You don’t need complexity to make money
- Look at this six-step strategy to earn $30,000 in passive income
