I often come across students with a chunk of savings who want to know how to create passive income with their money. For them, and for you today, I have some advice.
How to Create Passive Income: There’s No One System
In figuring out how to create passive income, I like to say that we’re setting up an FFA: a Financial Freedom Account. When looking at your money through this lens, it almost doesn’t matter what you do with a chunk of savings like that, as long as it’s money that’s going to work for you.
For instance, if you know that your book publishing is going to be a passive income structure, then go ahead and use it. If you know you’re going to open up a business that’s going to be systematized and leveraged eventually, and you’re going to have passive income coming from there, go for it. If you can create a situation where you’re investing and that works, then use some of it there.
Basically, what I’m saying is that anything you can do that creates financial freedom through passive income or capitalized investment income is fine.