Holy Guacamole! The Secret Sauce For Creating Passive Income
There’s a news story going around about some Australian millionaire who claims that millennials can’t buy houses because of their frivolous spending. According to him, $4 coffee and $15 brunch is keeping young people in the poorhouse.
Here’s my take:
No one gets rich from saving or setting a budget. But they do gain control over their money. Allowing them invest in beneficial activities.
Case in point. Way back in 2015, I’d spend $15 a day eating out and another $10 — $20 on miscellaneous entertainment (Steam games, random Amazon purchases, etc). This wasn’t hurting me (I’ve never owned a credit card, or had any debt), but it was frivolous spending.
Rather than continuing to throw money away on nothing, I decided to set a small budget and invest my “fun bucks” into hiring a ghostwriter for my eBook ventures.
This created a nice stream of truly passive income (someone else was doing all the work while I collected the checks), and cost next to nothing. It didn’t impact my lifestyle, wasn’t an added expense, and operated off money that was otherwise going to waste.
In most cases, you already have the funds to do something beneficial.
However, the majority of people mismanage their money, squandering it on useless purchases while neglecting their actual needs.
- $10 for coffee and a snack is enough to fund a small Facebook ad campaign.
- $60 for a new video game is money that could have gone into an IRA or mutual fund.
- $7,500 on a watch is a month or two of financial independence.
The next time you’re headed to the bar, waiting in line at Starbucks, or paying the cable bill, ask yourself if this is how you really want to spend your money?