IFB64: Personal Finance 105: Maximizing Passive Income

 

Welcome to Investing for Beginners podcast this is episode 64. Tonight we’re going to conclude our series on personal finance, this is episode 105 of our little series here. Andrew’s going to start us off we’re going to talk a little bit of passive income so Andrew go ahead and take it away.
Andrew: so I really wanted to talk about this because I feel like a discussion on personal finance isn’t complete especially in my own situation if we don’t talk about creating passive income.
By far creating a passive income stream has been the most if not influential is not the right word but it has had the greatest impact on my own trajectory my own path to financial freedom and that’s something that we definitely need to cover because I think it can be that way for a lot of people too if they’re willing to put in the work.
I understand like I have a very entrepreneurial mindset kind of like a workaholic type a type person so I understand that maybe this episode isn’t going to apply for everyone and that’s fine and if that’s the case for you and you want to just focus on the investing side and that’s 100% okay and we’ll get back to it like we normally do.
However we are talking about personal finance I am super passionate about creating passive income and when you’re doing investing, in general, you create a passive income that should be the goal with dividends and so obviously you need money to make money you can start small like we always talk about you grow that little income stream from dividends and your growth over time you reinvest it continues to get larger and larger and larger.
If you couldn’t add this element of passive income whether that’s picking up a side hustle, getting a second job where at whatever that entails that can also compound for you over the long term. Because now obviously you’re getting free money that you can invest for example if you have all your bills set up you have your budget set up like we talked about in the previous personal finance episode.
Then you could have a side hustle or a second job where all that money can go straight to your investments and it can really grow at a much-accelerated rate. And so the thing the things that I like about passive income and this is going to be something where I guess if you’re doing like a second job it doesn’t necessarily apply.
And I don’t want to speak to like every single type of passive income you could create because if that’s something you’re interested in I highly recommend Pat Flynn Smart Passive Income podcast. But I think there are some things I’ve seen success with that I believe both Dave and I can shed some light on today experiences is often the best teacher and I still believe like the way I found success is something that’s very early in the game so to say and there’s a lot of opportunity for people to kind of pick up that torch and continue with on.
And that might be kind of a stupid thing for me to say because I’m creating competitors as I say it but I’ve had like Porter Stanberry for example. He’s he has a podcast and I remember something he said that really stood out to me was the idea that the thing with investing I mean you can only create and I want to put words in his mouth.
But the way the way I kind of took out of it was you can only create so much from whatever capital you have so even if we were to say we’re the best investor in the world right let’s say you’re Warren Buffett and you’re able to compound it like an insane twenty-two percent a year or something like that.
If you’re broke is a joke and you’ve got five dollars to your name compounding of twenty-two percent a year isn’t going to make you a millionaire so I can make you a billionaire it won’...