Those who work have funds placed in Managed Super Funds.
Some of us have SMSF.
The aim is to build a nest egg that will create some form of passive income.
BUT for many it will not be enough.
Should in my view be our goal rather than accumulation of Wealth.
There is a difference to each and it can be argued that the more accumulated
wealth the more likely you will have a passive income stream or streams.
I thought Id start this thread with the view of adding to my suggestions below on
how to build or implement a passive income.
Apart from Super
We have the classics
Property both Commercial and Domestic
Share trading from Futures to Options to Equities to Commodities.
Bulk Funds in Bank accounts earning interest.
Konan started with buying a TV at a lower price and selling it at a price lower than retail (In simplistic terms)
But what about other ideas.
Like mini businesses without a great deal of input.
One a few friends have taken up from my suggestion is owning equipment they
then let out for long term hire. One friend bought a new 10 tonne excavator --- he cant operate it.
he has it within a fleet of machines with a machinery hire company. He hires it out on a long term hire basis with and without attachments. If It is required with an operator he simply supplies one from a Labor hire company.
He changes it over every 2 yrs.
I have heard of a guy who did exactly the same in China and has now a very large business more than a passive income.
Trailing Commissions for phone use mortgages and now energy and health insurances have become huge money as have normal insurances.
Another is development of an app. We have all heard the stories and would love to have started Angry Birds.
Well organised people can find people for other people and take a skim off the top.
Often done in the Cleaning field. This adds an interest as well as an income without affecting the day job.
Many do well from E-Bay!
I'm not talking $100s of 000s here but a constant flow of a few $100 to a $1000 a week or even a month.
That little extra which makes life that much easier.
People with skills can find other people with skills and take a commission.
I'm in the fortunate position where smaller works are not required by us so I sub contract the lead out to smaller operators.
They buy the materials from us and pay us 12% for the secured lead.
They charge what they want and we end up with around 25% for handing over a lead we would normally just reject. Both of us win and so does the client.
I'm sure there are many more ways of generating a passive income and look forward to the input of ASF members who have suggestions.
This is in my view the most important yet least discussed topic for Long Term Financial Security.