Here is how much you need invested to make $200 per day in passive income from real estate, index funds, and dividends – Enjoy! Add me on Instagram: GPStephan
LIMITED TIME: Get 4 FREE STOCKS ON WEBULL when you deposit $100 (Valued up to $1400): https://act.webull.com/k/Vowbik9Tm5he/main
JOIN THE WEEKLY MENTORSHIP – https://the-real-estate-agent-academy.teachable.com/p/graham-stephan-mentorship-program/
THE NEW PODCAST: https://www.youtube.com/channel/UCMSYZVlQmyG8_2MkIKzg0kw
The YouTube Creator Academy:
Learn EXACTLY how to get your first 1000 subscribers on YouTube, rank videos on the front page of searches, grow your following, and turn that into another income source: https://bit.ly/2STxofv $100 OFF WITH CODE 100OFF
My ENTIRE Camera and Recording Equipment:
The FIRST APPROACH – which is the most SIMPLE – is to follow what’s called The 4% Rule:
This is the formula that says you can spend 4% of your portfolio, each and every year, without running out of money, while maintaining your EXACT same lifestyle. Basically, the logic is that – if the market returns an AVERAGE of 7% per year adjusted for inflation, you’re safe spending about 4% of that – while still having enough left over to grow and hold you through the times where the stock market goes down for a prolonged period of time.
So, using this logic…if you wanted to replace the AVERAGE American income of $63,784…you multiply THAT by 25….and that means you would need $1,619,600 invested in the stock market to FULLY replace the average income.
The SECOND APPROACH: DIVIDEND STOCKS
Here’s how that works: when you buy a stock, what you’re REALLY buying into a small ownership share of that company. Now that you own a small piece of the company by investing in their stock – some of those companies will pay you out a “dividend,” which is a fancy word for saying: they’re going to pay you a portion of their profits, because you own a small piece of their company by buying their stock.
In my opinion, DIVIDEND STOCKS CAN be a good replacement of your income…but, I wouldn’t create your entire portfolio from it, because it’s MORE Important to look at the growth of the overall stock and the company, rather than JUST how much they pay. .
And FINALLY…the third approach, where you can speed up this process a LOT – is by investing in Real Estate.
For example, instead of investing $20,000 into buying stocks – you might be able to use $20,000 as a down payment to buy a $125,000 home that rents for $1000 per month. In this case, about $450 per month will pay your mortgage to the bank…$50 per month would go to insurance…$100 per month would to maintenance and repairs…$100 per month would to go vacancy and miscellaneous…and that would leave you with $300 PER MONTH left over as profit…from a $20,000 investment. In that scenario, you’re earning an 18% cash return on your $20,000.
To start doing this:
FIRST: TRACK YOUR SPENDING.
Just go to Mint.com or PersonalCapital.com, they’re both free, sign up – and then watch your spending for the next 30-60 days to see EXACTLY how much you spend every month. That’s all you need to do for this step.
SECOND: CUT BACK WHAT YOU DON’T NEED
Once you see how you spend your money over 30-60 days, you’re going to be able to point out some inefficiencies with where you spend and what you don’t need.
THIRD: SAVE AND INVEST THAT EXTRA MONEY
Literally WHATEVER YOU CUT BACK ON HERE – INVEST IT IMMEDIATELY. Open up a Roth IRA if you don’t already have one, throw that money into a low cost index fund, save up for a down payment on real estate, or do SOMETHING with the intention of investing it.
FOURTH: LOOK INTO GETTING ANOTHER JOB OR SWITCHING CAREERS
There are multiple studies that have shown that people who switch jobs every 2-3 years make nearly 50% more than someone who stays with the same company.
AND FIFTH: SLOWLY BUILD THIS UP OVER TIME WHILE YOU RE-INVEST YOUR PROFITS
And the OTHER good news is that, the less money you SPEND – the less money you need to REPLACE – and not everyone needs $63,000 per year in passive income.
As far as my own thoughts on this, and what I would do…honestly, I’d say it’s best to use a combination of ALL 3 OPTIONS if you want to invest enough to replace your income.
For business or one-on-one real estate investing/real estate agent consulting inquiries, you can reach me at GrahamStephanBusiness@gmail.com
*Some of the links and other products that appear on this video are from companies which Graham Stephan will earn an affiliate commission or referral bonus. Graham Stephan is part of an affiliate network and receives compensation for sending traffic to partner sites. The content in this video is accurate as of the posting date. Some of the offers mentioned may no longer be available.
How to Use ‘Voice of Customer’ Tools for Your Business
Voice of the Customer (VoC) is a research study technique that’s used by organizations to describe the requirements and also needs of their clients. This process captures every little thing that consumers are saying concerning a business, item, or solution and also plans those concepts into a total point of view of the brand name.Free Methods To Make Money Online
The net has lots of opportunities. To get in touch with close friends, to learn brand-new points and also even to generate income. All you need is a laptop or phone, a web connection and also the knowledge to begin earning money.Making Profits With Affiliate Marketing
If you want to enter into associate marketing starting currently however are stressed if it is still rewarding, it’s alright. It’s a concern a great deal of people ask. Do not stress. Affiliate advertising in 2019 is still successful.Blogging For Businesses
Blog writing, for some people, has a negative credibility. Critics think it’s simply for hipsters or digital wanderers. They believe it’s just a fad.Car Model Collecting For All Ages
The act of collecting is the capability to delight in and experience a certain product or occasion. Accumulating design cars for numerous is a great method to experience the satisfaction and delight of owning replicas of much-loved race cars, renowned autos that appeared in movies, or antique versions. When it involves design cars and trucks, enthusiasts can enter right into it at an inexpensive as well as build unique collections rapidly.