I consider myself a Passive-preneur, or passive entrepreneur. Now, passive in this sense does not mean lazy, or unworking. I haven’t retired, I haven’t given up. Passive here means that I focus my entrepreneurial skills on finding and manipulating many different passive forms of income. I’ve touched on these in the past, but for those new readers, I’m focused on things like Dividend paying stocks, niche website development, app development, and rental properties.
Are there any other types of Passive income?
One thing I’m finding is that the more money you have, the more potential for passive income there is. True passive income comes from making your money work for you, instead of working for your money. How do you do this? By investing. In stocks. In real estate. In businesses.
Now I bet you’re wondering, what? How can you invest in business and real estate while staying passive? Because, like I said, passive does not mean lazy. You put the work in up front, to collect the money passively down the road. In real estate this might mean hiring a property manager, or utilizing a property management automation software — such as the one I’m currently developing called American Village Manager — to handle the collection of your rents, and the books for you, to take away the vast majority of the work required in managing a rental property, and allowing you to put minimal hours in each week towards it.
In business it’s no different. When you have the money to invest in a working business, you should focus on those businesses that are profitable enough to hire someone to run the day-to-day operations. This way, you collect your monthly cut of the profits, and recoup your investment. Eventually profiting, without having to put any work in.
How does this tie into being a Caring Capitalist?
Well, if you consider that hiring people in businesses to do the work you don’t want to means you’re supplying a job that wouldn’t be there otherwise, and sacrificing capital to do it, that falls under the header. Now, investing in failing businesses that can profit, but aren’t profiting is another way you might do this. Put in the work up front in the company to turn it around, put someone in charge that can maintain that recovery, and keep your eye on them from afar, and you’ve not only put people to work, but you’re making money, and revitalizing a failing business, which are all good things.
Do you have any suggestions, any ideas that I might be missing? What about unique passive income streams? Post them in the comments, and give us a story about your income desires!