passive income

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pages: 290 words: 72,046

5 Day Weekend: Freedom to Make Your Life and Work Rich With Purpose by Nik Halik, Garrett B. Gunderson

Airbnb, bitcoin, Buckminster Fuller, business process, clean water, collaborative consumption, cryptocurrency, delayed gratification, diversified portfolio, do what you love, drop ship, en.wikipedia.org, estate planning, Ethereum, fear of failure, fiat currency, financial independence, gamification, glass ceiling, Grace Hopper, Home mortgage interest deduction, independent contractor, initial coin offering, Isaac Newton, Kaizen: continuous improvement, litecoin, low interest rates, Lyft, market fundamentalism, microcredit, minimum viable product, mortgage debt, mortgage tax deduction, multilevel marketing, Nelson Mandela, passive income, peer-to-peer, peer-to-peer rental, planned obsolescence, Ponzi scheme, quantitative easing, Ralph Waldo Emerson, ride hailing / ride sharing, selling pickaxes during a gold rush, sharing economy, side project, Skype, solopreneur, subscription business, TaskRabbit, TED Talk, traveling salesman, uber lyft

Here’s how I’m going to achieve it. I plan to achieve my 1:1 Passive Income Ratio by earning $______________ in passive income by ______________. I plan to achieve my 2:1 Passive Income Ratio by earning $______________ in passive income by ______________. I plan to achieve my 5:1 Passive Income Ratio and be com­pletely financially independent by earning $______________ in passive income by ______________. I plan to achieve my 10:1 Passive Income Ratio and have a sustainable amount of financial wealth by earning $_________ in passive income by ______________. To review passive income ratios, go to chapter 4. Signature: ______________________________________ Date: ______________ Go to our website to download and print this worksheet at 5DayWeekend.com.

How much net passive money are you earning? Your Goals When do you want to achieve your 1:1 Passive Income Ratio (earning enough passive income to cover your monthly expenses)? Target date? What is your goal for achieving a 2:1 Passive Income Ratio (earning twice as much passive income to cover your expenses)? Target date? What is your goal for achieving financial independence with a 5:1 Passive Income Ratio? Target date? What is your goal for achieving sustainable financial wealth with a 10:1 Passive Income Ratio? Target date? Go to our website to download and print this worksheet at 5DayWeekend.com.

See Sharelord Strategy Orman, Suze overrides owner financing, and loans for real estate investments P Palmer, Stephen partnerships, and loans for real estate investments passion, and entrepreneurial opportunities and Momentum investments passive income, Active/Passive Income Scale and entrepreneurship and freedom and Growth investments and income growth step and Information Age and investment resources and Momentum investments ongoing management requirements and Passive Income Ratio Passive Income Score Sheet and passive vs. active income streams and real estate investments and tax lien certificates and wealth creation step Passive Income Ratio (PIR) Passive Income Score Sheet Passport codes, Bank Strategy Cash Flow/ROI worksheet cryptocurrencies and 5DayWeekend.com 5 Day Weekend Passport resources Idea Optimizer Income Opportunity Score Sheet and Passive Income Ratio and Passive Income Score Sheet Rockefeller Formula Sharelord Strategy tax lien certificates Your 5 Day Weekend Plan Contract Your Debt Free Plan Your Entrepreneurial Income Plan Your Freedom Lifestyle Plan Your Investing Plan Your Power Up!


pages: 44 words: 13,346

Extreme Early Retirement: An Introduction and Guide to Financial Independence (Retirement Books) by Clayton Geoffreys

asset allocation, dividend-yielding stocks, financial independence, index fund, passive income, risk tolerance, The 4% rule

The cheap life you are trying to avoid will still get back at you in the form of debt, long hours at work, stress, and the probability that you might still be working past the age of 65. There is another method which you can live with and it is through generating passive income. Throughout the next pages, you will be learning more about passive income but the basic idea is to couple your active income with various sources of passive income. Two of the most common sources that early retirees can live with are dividend-yielding stocks and rental properties. However, every source of passive income requires an investment and nearly all kinds of investments involve risk. It is important for you to calculate your risk tolerances and consider safer options so you do not end up burning your savings. 5 Reasons You Should Consider Extreme Early Retirement You Will Have More Time Enjoying the Goodness in Life The average age when people retire is 65 or 70, and if you think about it, people spend more time working instead of living.

In conclusion, you really want to set realistic goals and start doing any of these methods in order to achieve those goals. How to Generate Passive Income Sources Being able to generate passive income from different sources is one of the strategies that everyone wishes to employ. It may take some time before you are able to generate a significant amount of cash inflow, but you have to carry on with an upward thrust and steady momentum. Generating passive income is especially great if you are aiming for extreme early retirement because the perfect time to begin creating passive income is when you are still in your mid 20’s to early 30’s or anytime in your life where you are not burdened with financial problems and obligations.

Additionally, you get bigger returns because EFTs cost much less than mutual funds. On a similar note, you can also take a look at real estate investment trusts (REITS) which make for a terrific source of passive income. People tend to forget that the money they earn from the different sources of passive income should be placed elsewhere for further investments or savings. It is vital not to withdraw any money from your passive income. The more you make that money difficult for you to reach or withdraw from, the better. Having passive income does not necessarily mean you can just sit around at a tropical beach sipping on cold beverages, and while you can opt to do that if you are in desperate need for a treat, you should be giving your cash inflow some attention and work, if any is needed.


pages: 621 words: 123,678

Financial Freedom: A Proven Path to All the Money You Will Ever Need by Grant Sabatier

8-hour work day, Airbnb, anti-work, antiwork, asset allocation, bitcoin, buy and hold, cryptocurrency, diversified portfolio, Donald Trump, drop ship, financial independence, fixed income, follow your passion, full employment, Home mortgage interest deduction, index fund, lifestyle creep, loss aversion, low interest rates, Lyft, money market fund, mortgage debt, mortgage tax deduction, passive income, remote working, ride hailing / ride sharing, risk tolerance, robo advisor, side hustle, Skype, solopreneur, stocks for the long run, stocks for the long term, TaskRabbit, the rule of 72, time value of money, uber lyft, Vanguard fund

Your net worth is the most important personal finance number for you to track on a regular basis. I track mine daily, and you should, too. Or at least once a week. Passive income—The holy grail of moneymaking, passive income sources make money that requires little to none of your time. While passive income can take a lot of time to set up, the long-term return is often worth it. Examples of passive income include rental income, blogging income, online course income, and drop-ship income. But stock investing income is the ultimate passive income, since it requires very little setup and, due to compounding, generates increasingly large returns over time.

As you’ve already learned, the connection between money and time doesn’t need to be linear—you can build a business that makes a lot of money but requires few (if any) employees and very little of your time. These are known as passive income businesses because you can make money without having to do a lot of active work. If you can find a business or investment that generates consistent reliable passive income (like rental income or stock dividends), then you can even make enough money to offset or cover your monthly expenses. Once you have reliable monthly passive income that you can live on, you’ve effectively reached financial independence. Another example of a passive income business is building online courses: you spend time creating and packaging the content, and then you sell it.

Given that you have only a limited amount of time, the most lucrative side hustles are ones that generate passive income—that is to say, money you can earn without actively having to do anything. This is why scaling your business is so lucrative; it allows you to make money in your sleep (while your employees walk dogs, babysit, or whatever else). Passive income is amazing because it completely disrupts the traditional idea that you need to trade your time for money. You can build a passive income business with or without employees. But passive income side hustles can be tough to build (there’s no such thing as free money, after all).


pages: 199 words: 57,599

Secrets of the Millionaire Mind by T. Harv Eker

Buckminster Fuller, Build a better mousetrap, Donald Trump, fear of failure, high net worth, Maui Hawaii, Parkinson's law, passive income, retail therapy

We refer to income without work as passive income. To win the money game, the goal is to earn enough passive income to pay for your desired lifestyle. In short, you become financially free when your passive income exceeds your expenses. I have identified two primary sources of passive income. The first is “money working for you.” This includes investment earnings from financial instruments such as stocks, bonds, T-bills, money markets, mutual funds, as well as owning mortgages or other assets that appreciate in value and can be liquidated for cash. The second major source of passive income is “business working for you.”

Try creating that from a regular nine-to-five job! I can’t overemphasize the importance of creating passive income structures. It’s simple. Without passive income you can never be free. But, and it’s a big but, did you know that most people have a tough time creating passive income? There are three reasons. First, conditioning. Most of us were actually programmed not to earn passive income. When you were somewhere between thirteen and sixteen years old and you needed money, what did your parents tell you? Did they say, “Well, go out there and earn some passive income?” Doubtful! Most of us heard, “Go to work,” “Go get a job,” or something to that effect.

Most of us heard, “Go to work,” “Go get a job,” or something to that effect. We were taught to “work” for money, making passive income abnormal for most of us. Second, most of us were never taught how to earn passive income. In my school, Passive Income 101 was another subject that was never offered. This time I got to take woodworking and metalworking (notice both still entailed “working”) and make the perfect candleholder for my mom. Since we didn’t learn about creating passive income structures in school, we learned it elsewhere, right? Doubtful. The end result is that most of us don’t know much about it, and therefore don’t do much about it.


pages: 202 words: 72,857

The Wealth Dragon Way: The Why, the When and the How to Become Infinitely Wealthy by John Lee

8-hour work day, Abraham Maslow, Albert Einstein, barriers to entry, Bernie Madoff, butterfly effect, buy low sell high, California gold rush, Donald Trump, financial independence, gentrification, high net worth, high-speed rail, intangible asset, Kickstarter, low interest rates, Mark Zuckerberg, Maslow's hierarchy, multilevel marketing, negative equity, passive income, payday loans, reality distortion field, self-driving car, Snapchat, Stephen Hawking, Steve Jobs, stocks for the long run, stocks for the long term, Tony Hsieh, Y2K

So step one of your plan is invest in appreciable assets, starting with the first and most important one…you! Passive Income Generation The most obvious source of passive income when you are building a property portfolio is your rental income. That is half the purpose (after the capital gains from appreciation) of owning investment property. But there are more ways to create passive income. You could start a business. If you are not ready for that step yet, you could look at trading the money markets. In Goals to Gold: Trading the Football Pitch for the Financial Markets, ex-footballer Lee Sandford shows us how he created a healthy passive income when his football career ended by learning to trade the financial markets.

It was my first introduction to the concept of passive income, and I became obsessed with it. Darren and I could not stop talking about how we were going to achieve our new goals of creating a passive income source that would allow us to keep building our wealth indefinitely. I could hardly believe that so much financial security and freedom was available to me and I became 100 percent focused on working out how I could make it happen. During the months that followed, all Darren and I did was research the topic. We attended countless seminars and trawled the Internet looking for new strategies for building passive income. Of course the one that consistently stood out was earning a rental income from a property portfolio, so we concentrated our efforts on learning everything we could about property investment.

In Without Risk There's No Reward, Bob Mayer tells many anecdotes to show how his booming property business could not have been built without taking huge risks. Step two of your plan should be to create a passive income from rental income and through trading the money markets, with a possible long-term view to creating a passive income from a business. Business Creation and Brand Building Does building a business sound like hard work? It is. But it is a highly effective way of creating passive income, as well as building a potentially appreciable asset. Remember that assets can be tangible or intangible. A brand is an intangible asset. Coca-Cola's huge worth is based on its brand, not the actual value of the contents of its products.


pages: 386 words: 116,233

The Millionaire Fastlane: Crack the Code to Wealth and Live Rich for a Lifetime by Mj Demarco

8-hour work day, Albert Einstein, AltaVista, back-to-the-land, Bernie Madoff, bounce rate, business logic, business process, butterfly effect, buy and hold, cloud computing, commoditize, dark matter, delayed gratification, demand response, do what you love, Donald Trump, drop ship, fear of failure, financial engineering, financial independence, fixed income, housing crisis, Jeff Bezos, job-hopping, Lao Tzu, Larry Ellison, low interest rates, Mark Zuckerberg, multilevel marketing, passive income, passive investing, payday loans, planned obsolescence, Ponzi scheme, price anchoring, Ronald Reagan, subscription business, upwardly mobile, wealth creators, white picket fence, World Values Survey, zero day

Whether I was watching Jerry Springer or jet skiing in Jamaica, the system was built to be its own machine-a living, breathing entity that did the dirty work for me. My system was a surrogate and traded its time. I owned my time instead of time owning me. Passive Income: The Holy Grail to Retirement The buzzword in moneymaking circles is “passive income”-earning income while not working. While retired, I receive checks every month like clockwork and I don't lift a finger. Passive income is a successful divorce from the “work for-money” equation indigenous to the Slowlane. The beauty of passive income is it doesn't care if you're 20 years old or 80. If your monthly income exceeds your lifestyle expenses including taxes, guess what?

Open your wallet and look at a dollar. One buck. It doesn't buy much but it is the embryonic start to a passive income stream. One dollar has the power to give you a nickel of passive income for life. Yes, for life. While one nickel buys squat, it unlocks the DNA implicit in money-it's fully passive. I retired in my thirties because of this simple reality. I'm a lender, and when you have a lot of money to lend, you live free because passive income arrives every month. If you had $10 million and lent it at a mere 5% interest, you'd enjoy a passive income of $41,666 every single month. At 8% your monthly income would be $66,666 per month-fully passive.

So how does all of this become a reality? I created a passive income stream via my Internet businesses (a business money tree seedling), which funded my passive income system from lending. While my Internet business was 85% passive (yes, I had to work several hours per week), my lending passivity is 99.5%. I do virtually nothing and the checks arrive. Instead of trading my time for dollars, I invested my time into an autonomous system simultaneously capable of passivity and capable of funding my money system. It was a dual-flanked attack where passive income was both the short and long term goal. Amass Your Army of Freedom Fighters Every dollar saved is another freedom fighter in your army.


pages: 2,045 words: 566,714

J.K. Lasser's Your Income Tax by J K Lasser Institute

accelerated depreciation, Affordable Care Act / Obamacare, airline deregulation, asset allocation, book value, business cycle, collective bargaining, distributed generation, employer provided health coverage, estate planning, Home mortgage interest deduction, independent contractor, intangible asset, medical malpractice, medical residency, money market fund, mortgage debt, mortgage tax deduction, passive income, Ponzi scheme, profit motive, rent control, Right to Buy, telemarketer, transaction costs, urban renewal, zero-coupon bond

Hillman’s plight is lamentable, but as the Fourth Circuit ruled, relief can only come from Congress if the IRS does not liberalize its regulation on self-charged expenses. 10.9 Passive Income Recharacterized as Nonpassive Income There is an advantage in treating income as passive income when you have passive losses that may offset the income. However, the law may prevent you from treating certain income as passive income. The conversion of passive income to nonpassive income is technically called “recharacterization.” This may occur when you do not materially participate in the business activity, but are sufficiently active for the IRS to consider your participation as significant.

Losses disallowed by the passive activity rules are suspended and carried forward to later taxable years and become deductible only when passive income is realized or substantially all of the activity is sold. Casualty and theft losses are not passive losses unless they are of the type usually occurring in a business, such as shoplifting theft losses. On your tax return, passive income items and allowable deductible items are reported as regular income and deductions. For example, rental income and allowable deductions are reported on Schedule E. However, before you make these entries, you may have to prepare Form 8582, which identifies your passive income and losses and helps you to determine whether passive loss items are deductible.

Passive losses are losses from business activities in which you do not materially participate (10.6) or losses from rental activities that are not deductible under the $25,000 allowance (10.2) or which do not qualify you as a real estate professional (10.3). In some cases passive income may be recharacterized as nonpassive income (10.9). Where you do not materially participate in a business activity, passive income or loss is determined by matching income and expenses of that activity. Portfolio income (see below) earned by the activity or any pay that you earn is not included to determine passive income or loss. Portfolio income. Portfolio income is nonpassive income and broadly defined as income that is not derived in the ordinary course of business of the activity.


pages: 1,845 words: 567,850

J.K. Lasser's Your Income Tax 2014 by J. K. Lasser

accelerated depreciation, Affordable Care Act / Obamacare, airline deregulation, asset allocation, book value, business cycle, collective bargaining, distributed generation, employer provided health coverage, estate planning, Home mortgage interest deduction, independent contractor, intangible asset, medical malpractice, medical residency, mortgage debt, mortgage tax deduction, obamacare, passive income, Ponzi scheme, profit motive, rent control, Right to Buy, telemarketer, transaction costs, urban renewal, zero-coupon bond

Hillman’s plight is lamentable, but as the Fourth Circuit ruled, relief can only come from Congress if the IRS does not liberalize its regulation on self-charged expenses. 10.9 Passive Income Recharacterized as Nonpassive Income There is an advantage in treating income as passive income when you have passive losses that may offset the income. However, the law may prevent you from treating certain income as passive income. The conversion of passive income to nonpassive income is technically called “recharacterization.” This may occur when you do not materially participate in the business activity, but are sufficiently active for the IRS to consider your participation as significant.

Losses disallowed by the passive activity rules are suspended and carried forward to later taxable years and become deductible only when passive income is realized or substantially all of the activity is sold. Casualty and theft losses are not passive losses unless they are of the type usually occurring in a business, such as shoplifting theft losses. On your tax return, passive income items and allowable deductible items are reported as regular income and deductions. For example, rental income and allowable deductions are reported on Schedule E. However, before you make these entries, you may have to prepare, which identifies your passive income and losses and helps you to determine whether passive loss items are deductible.

Passive losses are losses from business activities in which you do not materially participate (10.6) or losses from rental activities that are not deductible under the $25,000 allowance (10.2) or which do not qualify you as a real estate professional (10.3). In some cases passive income may be recharacterized as nonpassive income (10.9). Where you do not materially participate in a business activity, passive income or loss is determined by matching income and expenses of that activity. Portfolio income (see below) earned by the activity or any pay that you earn is not included to determine passive income or loss. Portfolio income Portfolio income is nonpassive income and broadly defined as income that is not derived in the ordinary course of business of the activity.


J.K. Lasser's Your Income Tax 2016: For Preparing Your 2015 Tax Return by J. K. Lasser Institute

accelerated depreciation, Affordable Care Act / Obamacare, airline deregulation, asset allocation, book value, business cycle, collective bargaining, distributed generation, employer provided health coverage, estate planning, Home mortgage interest deduction, independent contractor, intangible asset, medical malpractice, medical residency, mortgage debt, mortgage tax deduction, passive income, Ponzi scheme, profit motive, rent control, Right to Buy, transaction costs, urban renewal, zero-coupon bond

Hillman’s plight is lamentable, but as the Fourth Circuit ruled, relief can only come from Congress if the IRS does not liberalize its regulation on self-charged expenses. 10.9 Passive Income Recharacterized as Nonpassive Income There is an advantage in treating income as passive income when you have passive losses that may offset the income. However, the law may prevent you from treating certain income as passive income. The conversion of passive income to nonpassive income is technically called “recharacterization.” This may occur when you do not materially participate in the business activity, but are sufficiently active for the IRS to consider your participation as significant.

Losses disallowed by the passive activity rules are suspended and carried forward to later taxable years and become deductible only when passive income is realized or substantially all of the activity is sold. Casualty and theft losses are not passive losses unless they are of the type usually occurring in a business, such as shoplifting theft losses. On your tax return, passive income items and allowable deductible items are reported as regular income and deductions. For example, rental income and allowable deductions are reported on Schedule E. However, before you make these entries, you may have to prepare Form 8582, which identifies your passive income and losses and helps you to determine whether passive loss items are deductible.

Passive losses are losses from business activities in which you do not materially participate (10.6) or losses from rental activities that are not deductible under the $25,000 allowance (10.2) or which do not qualify you as a real estate professional (10.3). In some cases passive income may be recharacterized as nonpassive income (10.9). Where you do not materially participate in a business activity, passive income or loss is determined by matching income and expenses of that activity. Portfolio income (see below) earned by the activity or any pay that you earn is not included to determine passive income or loss. Portfolio income. Portfolio income is nonpassive income and broadly defined as income that is not derived in the ordinary course of business of the activity.


J.K. Lasser's Your Income Tax 2022: For Preparing Your 2021 Tax Return by J. K. Lasser Institute

accelerated depreciation, Affordable Care Act / Obamacare, airline deregulation, anti-communist, asset allocation, bike sharing, bitcoin, business cycle, call centre, carried interest, collective bargaining, coronavirus, COVID-19, cryptocurrency, distributed generation, distributed ledger, diversification, employer provided health coverage, estate planning, Home mortgage interest deduction, independent contractor, intangible asset, medical malpractice, medical residency, mortgage debt, mortgage tax deduction, passive income, Ponzi scheme, profit motive, rent control, ride hailing / ride sharing, Right to Buy, sharing economy, TaskRabbit, Tax Reform Act of 1986, transaction costs, zero-coupon bond

Hillman's plight is lamentable, but as the Fourth Circuit ruled, relief can only come from Congress if the IRS does not liberalize its regulation on self-charged expenses. 10.9 Passive Income Recharacterized as Nonpassive Income There is an advantage in treating income as passive income when you have passive losses that may offset the income. However, the law may prevent you from treating certain income as passive income. The conversion of passive income to nonpassive income is technically called “recharacterization.” This may occur when you do not materially participate in the business activity, but are sufficiently active for the IRS to consider your participation as significant.

Losses disallowed by the passive activity rules are suspended and carried forward to later taxable years and become deductible only when passive income is realized or substantially all of the activity is sold. Casualty and theft losses are not passive losses unless they are of the type usually occurring in a business, such as shoplifting theft losses. On your tax return, passive income items and allowable deductible items are reported as regular income and deductions. For example, rental income and allowable deductions are reported on Schedule E. However, before you make these entries, you may have to prepare Form 8582, which identifies your passive income and losses and helps you to determine whether passive loss items are deductible.

Passive losses are losses from business activities in which you do not materially participate (10.6) or losses from rental activities that are not deductible under the $25,000 allowance (10.2) or which do not qualify you as a real estate professional (10.3). In some cases passive income may be recharacterized as nonpassive income (10.9). Where you do not materially participate in a business activity, passive income or loss is determined on Form 8582 by matching income and expenses of that activity. Portfolio income (see below) earned by the activity or any pay that you earn is not included to determine passive income or loss. Portfolio income. Portfolio income is nonpassive income and broadly defined as income that is not derived in the ordinary course of business of the activity.


pages: 389 words: 81,596

Quit Like a Millionaire: No Gimmicks, Luck, or Trust Fund Required by Kristy Shen, Bryce Leung

Affordable Care Act / Obamacare, Airbnb, Apollo 13, asset allocation, barriers to entry, buy low sell high, call centre, car-free, Columbine, cuban missile crisis, Deng Xiaoping, digital nomad, do what you love, Elon Musk, fear of failure, financial independence, fixed income, follow your passion, Great Leap Forward, hedonic treadmill, income inequality, index fund, John Bogle, junk bonds, longitudinal study, low cost airline, Mark Zuckerberg, mortgage debt, Mr. Money Mustache, obamacare, offshore financial centre, passive income, Ponzi scheme, risk tolerance, risk/return, side hustle, Silicon Valley, single-payer health, Snapchat, Steve Jobs, subprime mortgage crisis, supply-chain management, the rule of 72, working poor, Y2K, Zipcar

Five thousand to $10,000 per year sounds like chump change if you’re trying to live on it, but if you have achieved SideFIRE and this is your supplemental income, it becomes significant. That’s $5,000 of passive income you don’t have to generate. According to the 4 Percent Rule, that means you can decrease the portfolio you need to escape from your job by a whopping $125,000. Think about how much time it would take for you to save that much money. This is why side hustles, by themselves, are not super useful for your financial freedom, but coupled with a portfolio spinning off passive income, they can make all the difference in the world. And if your side hustle has to do with your passion, it’s a triple win, because it decreases the size of the portfolio you need, lets you follow that passion, and generates additional income.

By developing a side hustle while you’re working, you essentially kill three birds with one stone: you increase your savings rate by making more money, develop a new skill, and reduce the size of the portfolio needed to escape your nine-to-five. Returning to the example of the couple earning a median family income of $62,175 per year before taxes, if they manage to earn $20,000 a year with a part-time job or side hustle after leaving their jobs, they would only need $40,000 − $20,000 = $20,000 per year in passive income from their portfolio. Using the 4 Percent Rule, that means they would only need $20,000 × 25 = $500,000 to achieve SideFIRE. If they save 24 percent of their after-tax income, here’s what the math looks like: Year Starting Balance Annual Contribution Return (6%) Total 1 $0.00 $12,724.00 $0.00 $12,724.00 2 $12,724.00 $12,724.00 $763.44 $26,211.44 3 $26,211.44 $12,724.00 $1,572.69 $40,508.13 4 $40,508.13 $12,724.00 $2,430.49 $55,662.62 5 $55,662.62 $12,724.00 $3,339.76 $71,726.38 6 $71,726.38 $12,724.00 $4,303.58 $88,753.96 7 $88,753.96 $12,724.00 $5,325.24 $106,803.20 8 $106,803.20 $12,724.00 $6,408.19 $125,935.39 9 $125,935.39 $12,724.00 $7,556.12 $146,215.51 10 $146,215.51 $12,724.00 $8,772.93 $167,712.44 11 $167,712.44 $12,724.00 $10,062.75 $190,499.19 12 $190,499.19 $12,724.00 $11,429.95 $214,653.14 13 $214,653.14 $12,724.00 $12,879.19 $240,256.33 14 $240,256.33 $12,724.00 $14,415.38 $267,395.71 15 $267,395.71 $12,724.00 $16,043.74 $296,163.45 16 $296,163.45 $12,724.00 $17,769.81 $326,657.26 17 $326,657.26 $12,724.00 $19,599.44 $358,980.70 18 $358,980.70 $12,724.00 $21,538.84 $393,243.54 19 $393,243.54 $12,724.00 $23,594.61 $429,562.15 20 $429,562.15 $12,724.00 $25,773.73 $468,059.88 21 $468,059.88 $12,724.00 $28,083.59 $508,867.47 By working on a side hustle to generate $20,000 a year, the couple can shave nine years off their time to financial independence.

Check out Grant Sabatier’s book Financial Freedom and Chris Guillebeau’s The $100 Startup for ideas on how to make money on side hustles. PARTIAL FI What if you’re not interested in a side hustle? What if you actually enjoy your job but just need more flexibility? What if you just want more time to spend time with family and friends? Say hello to Partial FI! When you are fully FI, the passive income from your portfolio must be enough to cover your expenses. But if you have the option to decrease your hours to part-time or become a contractor with the option to take mini-retirements or sabbaticals, Partial FI will allow you that flexibility and freedom. Some careers that require a certain number of hours to maintain your license, like nursing, are especially well suited to this path.


pages: 169 words: 43,906

The Website Investor: The Guide to Buying an Online Website Business for Passive Income by Jeff Hunt

buy low sell high, content marketing, deal flow, Donald Trump, drop ship, frictionless, frictionless market, intangible asset, medical malpractice, Michael Milken, passive income, Ralph Waldo Emerson, Skype, software as a service

The Website Investor The Guide to Buying an Online Website Business for Passive Income Jeff Hunt NEW YORK The Website Investor The Guide to Buying an Online Website Business for Passive Income © 2015 Jeff Hunt. All rights reserved. No portion of this book may be reproduced, stored in a retrieval system, or transmitted in any form or by any means—electronic, mechanical, photocopy, recording, scanning, or other,—except for brief quotations in critical reviews or articles, without the prior written permission of the publisher. Published in New York, New York, by Morgan James Publishing.

And, if you are willing to put in a lot of effort, you can make a lot of money. “Anyone who is not investing now is missing a tremendous opportunity.” —Carlos Slim Is Website Investing Truly Passive? As I said, one reason I love website investments is because there is the potential to have a passive income stream. There are some kinds of websites, like the healthcare website I mentioned, that are content websites. You put good information on the pages, and people visit to read the information. You make money when the visitors click on ads or when the advertisers pay you. Other websites require more activity on your part.

In the per-impression model, a company might pay $10 for every thousand times its ad is displayed on a website. Google might keep $4 of that and pass $6 along to the website owner. In effect, Google and other sophisticated ad networks have made it extremely easy for website owners to earn money from their content websites. Content websites produce very passive income streams, provided there is a steady stream of traffic. I own content websites that get a steady stream of visitors from articles I published long ago on sites that I have not updated in years. However, traffic is a fickle beast, and as many stories as there are about steady, long-term traffic, there are just as many about traffic that was there one day and dried up the next.


pages: 135 words: 26,407

How to DeFi by Coingecko, Darren Lau, Sze Jin Teh, Kristian Kho, Erina Azmi, Tm Lee, Bobby Ong

algorithmic trading, asset allocation, Bernie Madoff, bitcoin, blockchain, buy and hold, capital controls, collapse of Lehman Brothers, cryptocurrency, distributed ledger, diversification, Ethereum, ethereum blockchain, fiat currency, Firefox, information retrieval, litecoin, margin call, new economy, passive income, payday loans, peer-to-peer, prediction markets, QR code, reserve currency, robo advisor, smart contracts, tulip mania, two-sided market

~ Recommended Readings The DeFi Series – An overview of the ecosystem and major protocols (Alethio) https://medium.com/alethio/the-defi-series-an-overview-of-the-ecosystem-and-major-protocols-da27d7b11191 Compound FAQ (Robert Leshner) https://medium.com/compound-finance/faq-1a2636713b69 DeFi Series #1 - Decentralized Cryptoasset Lending & Borrowing (Binance Research) https://research.binance.com/analysis/decentralized-finance-lending-borrowing Zero to DeFi – A beginner’s guide to earning passive income via Compound Finance (Defi Pulse) https://defipulse.com/blog/zero-to-defi-cdai/ I took out a loan with cryptocurrency and didn’t sign a thing (Stan Schroeder) https://mashable.com/article/defi-guide-ethereum-decentralized-finance.amp Earn passive income with Compound. (DefiZap) https://defitutorials.substack.com/p/earn-passive-income-with-compound Chapter Seven: Decentralized Exchanges (DEX) While Centralized Exchanges (CEXs) allow for large trades to happen with plenty of liquidity, it still carries a lot of risks because users do not have ownership of their assets in exchanges.

At first glance, dYdX appears to have some similarities to Compound - users can supply assets (lend) to earn interest and also loan assets (borrow) after depositing collateral. However, dYdX takes it one step further by incorporating a margin and leveraged exchange with ETH margin trading up to 5X leverage using either DAI or USDC. ~ Lending If you are a crypto holder who would like to generate some passive income on your otherwise unproductive cryptoassets, you may consider lending it out on dYdX for some yield. It is relatively low risk and by depositing it into dYdX, interest accrues every second without any additional maintenance or management needed. As a lender on dYdX, you only need to be mindful of the earned Interest Rate (APR) - this represents how much you will earn from lending out your assets


pages: 229 words: 61,482

The Gig Economy: The Complete Guide to Getting Better Work, Taking More Time Off, and Financing the Life You Want by Diane Mulcahy

Affordable Care Act / Obamacare, Airbnb, Amazon Mechanical Turk, basic income, Clayton Christensen, cognitive bias, collective bargaining, creative destruction, David Brooks, deliberate practice, digital nomad, diversification, diversified portfolio, fear of failure, financial independence, future of work, gig economy, helicopter parent, Home mortgage interest deduction, housing crisis, independent contractor, job satisfaction, Kickstarter, loss aversion, low interest rates, low skilled workers, Lyft, mass immigration, mental accounting, minimum wage unemployment, mortgage tax deduction, negative equity, passive income, Paul Graham, remote working, risk tolerance, Robert Shiller, seminal paper, Silicon Valley, Snapchat, social contagion, TaskRabbit, TED Talk, the strength of weak ties, Uber and Lyft, uber lyft, universal basic income, wage slave, WeWork, Y Combinator, Zipcar

Passive income is produced by renting our homes or owning a piece of a business through direct ownership or through stock options or employee stock that many companies grant their employees. We can generate passive income from investing our retirement and savings account in the stock market. Looking for work at a company that offers equity compensation is another way to increase passive income, as is renting out any real estate you own or rent. As you consider options for making more money, consider ways you can earn more from your labor as well as generating passive income. Increase Financial Flexibility by Stashing the Cash Savings give us flexibility, create options in our life, and cushion the blow of unexpected financial setbacks like a job loss or unanticipated expense.

Analysis from the Urban-Brookings Tax Policy Center shows that 64 percent of Americans earn their income from a paycheck.2 It’s possible to achieve financial security and comfort through earned income, but it’s difficult to become wealthy because our earned income is limited by the finite hours of our labor we can sell. Passive income, or unearned income, comes from our investments—in real estate, the stock market, and businesses. It’s this investment income that most often creates wealth. The Urban-Brookings study found that the top 1 percent of Americans earn the majority (53 percent) of their income from passive sources rather than from a paycheck. It’s more volatile, and higher risk, than earned income but offers potentially higher reward. Passive income is produced by renting our homes or owning a piece of a business through direct ownership or through stock options or employee stock that many companies grant their employees.

life insurance Limited Liability Corporation (LLC) loss aversion Maker’s Schedule Manager’s Schedule marketing, for new jobs Marsh, Nigel Mastermind Dinners (Gaignard) material wealth, vs. personal fulfillment MBA students, planning by McDonald’s mental tasks, combining with physical Merchant, Nilofer MetLife, Study of the American Dream Microsoft middle class impact of home ownership middle managers Mihalic, Joe Mint.com Moment money, perspective on mortgage mortgage calculator National Labor Relations Act National Labor Relations Board (NLRB) negative cash flow net worth, in principal residence networks maintaining 99designs Obituary exercise offer in connecting 168 Hours (Vanderkam) opportunity, income security from opportunity mindset outbound connecting Outliers (Gladwell) overconfidence ownership, vs. access paid leave part-time side gigs passion, pursuing in time off passive income Peers.org pension plans personal branding personal burn rate personal fulfillment, vs. material wealth perspective, time off to change Pew Research Center physical tasks, combining with mental pilot tests planning for best-case scenario in financial flexibility for time off playtime portfolio of gigs building for experiments learning by doing opportunity for connections Postmates power, and expanding time predictors of future feelings priorities checkbook diagnostic exercise on extended family as of others, impact of private sector, job creation decline pro-bono legal adviser Proctor & Gamble Profiting from Uncertainty (Schoemaker) public assistance, eliminating public speaking purchases, time cost of Qapital QuickBooks quitting job, exit strategy for Rae, Amber rates of return, for housing Raw Deal (Hill) referrals, asking for regret, risk of Reich, Robert Reinventing You (Clark) rejuvenation, time off for relationships, impact on success renting growth in households vs. ownership reputation RescueTime resources, allocating to short-term activities vs. long-term goals resume, gaps for time off resume virtues retail workers retirement healthcare costs in new vision of plans to work longer before saving to finance traditional savings plans supplemental income in rewards, time for longer-term risk assessment of of boring life debt and of diploma debt facing fear by identifying size of risk reduction by acceptance by eliminating exercise for facing fear by assessing options with insurance by mitigating risk by shifting risk risk taker, learning to be Rohn, Jim Rolf, David Roth IRA Rowing the Atlantic (Savage) S Corporation S&P 500 companies, average life sabbaticals safety net, creating Sagmeister, Stefan Savage, Roz, Rowing the Atlantic saving for retirement traditional plan savings, financial plan and increase ScheduleOnce Schoemaker, Paul, Profiting from Uncertainty Schrager, Allison security creating from diversifying for income for job self-employment income tax form for risk assessment SEP IRA service workers Shared Security Account Shell, Richard Simmons, Gail skill-based economy, vs. credentials-based economy skill-based employment system, vs. tenure-based employment system skilled workers skills, income security from building Slaughter, Anne-Marie Snapchat social capital, of introducer social contagion social media Social Security Social Security Administration Society for Human Resources Management sole proprietor, independent worker as South by Southwest (SXSW) speaking inbound connecting through skills for specialization spending, auditing Stand Out (Clark) Star Plates start dates, negotiating startup exit strategy for Strayed, Cheryl Stride Health strong ties in network student loans success as contagious defining vision of external versions new American dream as definition refining vision of surrogation sweat equity bucket Target TaskRabbit tax data analysis Tax Policy Center taxes deductions for mortgage interest Schedule C withholding teaching technology for delegating outbound connecting by leveraging technology companies tenure-based employment system, vs. skill-based employment system time age-related difference in perception calculating use employees’ learned helplessness about expanding horizon for savings plan for longer-term rewards management mindfulness about and purchase cost reaction to wasting reclaiming tracking investments time frame, for goals time off benefits developing ideas for exercise financing friends and family reaction gaps in resume from between gigs, vs. paid time off planning for Toastmaster tolerance of risk Ton, Zeynep The Good Jobs Strategy Top Chef Topcoder total cost of home travel Twitter Uber drivers uncertainty, cognitive biases about unearned income unemployment insurance unemployment protection, for self-employed universal basic income (UBI) universality of benefits universities, faculty members Upwork Urban-Brookings Tax Policy Center vacation. see also time off Vanderkam, Laura, 168 Hours Vanguard, online calculator Virtues exercise volunteer positions during time off wage insurance Walmart Ware, Bronnie weak ties in network wealth gap WeWork withholding taxes Wolff, Edward work flexibility full-time job disappearance future of workers eliminating categorization of last resort workers’ compensation working lives, end of worst case, facing fear by starting with writing skills inbound connecting through Xero YouCanBook.me ABOUT THE AUTHOR Diane created and teaches The Gig Economy, which was named by Forbes as one of the Top 10 Most Innovative Business School Classes in the country.


pages: 237 words: 66,545

The Money Tree: A Story About Finding the Fortune in Your Own Backyard by Chris Guillebeau

Bernie Madoff, drop ship, Ethereum, fail fast, financial independence, global village, hiring and firing, housing crisis, independent contractor, messenger bag, passive income, race to the bottom, rent-seeking, ride hailing / ride sharing, side hustle, Steve Jobs, telemarketer

Clarence had taken a short break to respond to a message on his phone. Now he looked back up. “Alright, enough with the grandparent test—you get it. There’s another very important reason why you need to go beyond reselling. Right now you don’t really have any sort of passive income.” Jake had never heard of retail arbitrage, the phrase that Preena had mentioned the other day, but he was familiar with the promise of passive income. The phrase had become a bit of a cliché. Once, while browsing at a bookstore, he’d spent an hour leafing through a whole shelf of books that promised such a thing. Most of them seemed to suggest that readers buy the author’s course on acquiring real estate properties.

Most of them seemed to suggest that readers buy the author’s course on acquiring real estate properties. When he mentioned this, Clarence immediately became animated. “I’m glad you brought that up! Buying rental properties is one small field of passive income,” he said, “and it’s not realistic for most people. Here’s another test, and this one’s easier. Do you have enough money for a down payment on a bunch of old houses or apartments?” “Nope.” That was an easy question. “And do you have enough time to wait years, maybe even a decade or longer, to ‘build your portfolio’ like those guys talk about?” “Definitely not.” Also easy. “Last but not least, do you even want to be a landlord?”

“Last but not least, do you even want to be a landlord?” Jake thought about his recent experience dealing with the burst pipe. “It doesn’t sound very attractive.” “Right. Buying rental properties works for a small number of people—and good for them—but most folks should look elsewhere. I should put this on a bumper sticker. Passive income: it’s not just about real estate. “Here’s what’s far more obtainable. Imagine waking up to a notification that says there is more money in your bank account than there was when you went to sleep. Anything that gets you closer to that point is your goal.” That sounded good to Jake. What sounded even better, at least at the moment, was the idea of sneaking away somewhere to take a nap.


pages: 403 words: 110,492

Nomad Capitalist: How to Reclaim Your Freedom With Offshore Bank Accounts, Dual Citizenship, Foreign Companies, and Overseas Investments by Andrew Henderson

Affordable Care Act / Obamacare, Airbnb, airport security, Albert Einstein, Asian financial crisis, asset allocation, bank run, barriers to entry, birth tourism , bitcoin, blockchain, business process, call centre, capital controls, car-free, content marketing, cryptocurrency, currency risk, digital nomad, diversification, diversified portfolio, Donald Trump, Double Irish / Dutch Sandwich, Elon Musk, failed state, fiat currency, Fractional reserve banking, gentrification, intangible asset, land reform, low interest rates, medical malpractice, new economy, obamacare, offshore financial centre, passive income, peer-to-peer lending, Pepsi Challenge, place-making, risk tolerance, side hustle, Silicon Valley, Skype, too big to fail, white picket fence, work culture , working-age population

There is a fine line between traveling in comfort to increase productivity and blowing your $100,000 of yearly tax savings on overpriced flights with lackluster Thai Airways flight attendants. Why not save that money to spend on champagne and a private bungalow next to a breathtaking beach? Or, even better, invest it in real estate that will increase your lifestyle options or passive income. I would far rather invest the $30,000 or more each year I save ‘cheaping out’ in business class into procuring a better view or location when upgrading one of my residences. This, of course, is my personal preference that I have distilled over many years of travel. Your preferences may be different.

As a US citizen, after certain exemptions that we will discuss later in the tax section of this book, it is possible you would still pay as much as $60,000 in various taxes on your salary, even if you never set foot back in the United States. That’s $60,000 this year, next year, and the year after that. After ten years, you would have paid $600,000, not to mention the opportunity cost of not being able to reinvest that money. The same goes for investors. Passive income, such as that from real estate investments, is only exempted if you pay tax overseas, meaning your entire rental portfolio or stock trading activity could be taxed from the first dollar. Now here is the news you may not want to hear: the only way to get around all of these restrictions – the taxes, the bank account reporting, the FCPA, OFAC, etc. – is to renounce your US citizenship.

The difference is that most entrepreneurs can get out of this trap with much more ease than a salaried employee tied to one location. In Tim’s case, his Amazon business was growing so quickly that every $1 he invested quickly became at least $3 as products launched and created new (almost somewhat passive) income for him. I explained that, based on those numbers, his real tax costs were actually $129,000 rather than the actual $43,000 he paid. The reasoning was that, had he been able to use that $43,000 to grow his business, it would have been able to grow into something much bigger. He was losing the return on his investment.


pages: 231 words: 76,283

Work Optional: Retire Early the Non-Penny-Pinching Way by Tanja Hester

Affordable Care Act / Obamacare, Airbnb, anti-work, antiwork, asset allocation, barriers to entry, buy and hold, crowdsourcing, diversification, estate planning, financial independence, full employment, General Magic , gig economy, hedonic treadmill, high net worth, independent contractor, index fund, labor-force participation, lifestyle creep, longitudinal study, low interest rates, medical bankruptcy, mortgage debt, Mr. Money Mustache, multilevel marketing, obamacare, passive income, post-work, remote working, rent control, ride hailing / ride sharing, risk tolerance, robo advisor, side hustle, stocks for the long run, tech worker, Vanguard fund, work culture

You may also hear this money called passive income, but I prefer to call it magic money. There’s no actual magic involved, of course, but when you watch money you’ve invested grow and multiply over time, without you doing a thing, it sure feels like magic. The “magic” is really just the compounding of interest, capital gains, and asset appreciation earned on money you’ve invested, meaning that what you earn each year is multiplied on top of prior years’ growth, not just added, making the growth happen much faster. If you can invest enough, eventually you have enough magic money or passive income spinning off of your invested assets that it covers all of your living costs, meaning you don’t need to work anymore, or you can work much less.

And then use the HSA to your advantage if you can—and don’t neglect your preventive care. Rental Real Estate Investing in rental real estate—whether that’s condos, apartment buildings, or single-family homes—can be one of the fastest routes to a work-optional life because you need far less cash saved to generate enough magic money or passive income to live off of. The flip side, of course, is that that’s made possible by leverage, a fancy word for debt. Most real estate investors take out a mortgage on a property they wish to buy to rent it out. They do the math on the purchase price and local rental market to ensure that the rent they collect will cover the mortgage payments, taxes, insurance, income tax they’ll owe, and upkeep costs and still net some magic money at the end, what’s often called positive cash flow.

And even though you’ll have earnings in retirement from your magic money sources, most of that does not count as earned income, and thus does not earn you Social Security credits. Unearned income that doesn’t increase your Social Security benefits includes capital gains, rental income, interest on savings, IRA or 401(k) withdrawals, private pensions, payouts for vacation or sick leave, bonuses, and deferred compensation. In other words, just about every possible passive income source. Though it’s possible that Social Security benefits could decrease, especially for higher earners, to keep the system solvent longer, it’s helpful to know the ballpark ranges you might be looking at. While there is no minimum benefit, and those who have paid very little into the system will receive very little in return, the average monthly benefit for someone who reached full retirement age in 2016 was $1,340, while the maximum benefit for the highest earners was $2,640, a total of less than $32,000 per year before taxes.


pages: 206 words: 60,587

Side Hustle: From Idea to Income in 27 Days by Chris Guillebeau

Airbnb, buy low sell high, content marketing, inventory management, Lyft, passive income, ride hailing / ride sharing, Salesforce, sharing economy, side hustle, side project, Silicon Valley, Silicon Valley startup, subscription business, TaskRabbit, the scientific method, Uber for X, uber lyft

Once she came to this realization, she began to focus her time on courses and products geared toward people just like her. By the end of the first year of her hustle, she earned more than $20,000. By midpoint of year two, she had already crossed $30,000, all while reducing the actual design work she did in order to focus on more passive income. She was still working her day job but found her side hustle so fulfilling that her life suddenly didn’t look as beige anymore. START WITH ONE Every side hustle has a target customer, a specific type of person that its product or service is designed for. Sometimes these target customers are called “avatars,” but you can also just think of them as your people.

Now that you’re an experienced side hustler, you probably have no shortage of ideas and should have no trouble getting one of them off the ground. With his unconventional résumé service turned product, Tim had effectively built a treehouse in his backyard—the project had fulfilled its goal and was now working hard to earn passive income for him. He could have kept working on it in hopes of growing it further, but instead he looked to the future and decided to pursue one of his many other ideas. That’s the great thing about side hustles: once you get started making money, it’s hard to stop! * * * *1 In the long term, it’s good to know your approximate “hourly wage” for what you earn on your hustle.

WHY: People want to learn, and they’ll pay for the right materials. AVERAGE STARTUP COST: Low. EASE OF STARTUP: Low. LONG-TERM POTENTIAL: Variable. SKILLS REQUIRED: Teaching, logical thinking, and marketing (once it’s written, you’ll need to get the word out!). BENEFITS: Potential for truly passive income. DOWNSIDES: Potential consumer resistance; may be hard to compete against free resources. WORKFLOW: 1. Identify a topic for your blueprint. The more specific, the better. 2. Write down the major challenges that others experience when trying to tackle this topic on their own. 3. Write down each step that people need to complete to follow the blueprint to success. 4.


Trade Your Way to Financial Freedom by van K. Tharp

asset allocation, backtesting, book value, Bretton Woods, buy and hold, buy the rumour, sell the news, capital asset pricing model, commodity trading advisor, compound rate of return, computer age, distributed generation, diversification, dogs of the Dow, Elliott wave, high net worth, index fund, locking in a profit, margin call, market fundamentalism, Market Wizards by Jack D. Schwager, passive income, prediction markets, price stability, proprietary trading, random walk, Reminiscences of a Stock Operator, reserve currency, risk tolerance, Ronald Reagan, Savings and loan crisis, Sharpe ratio, short selling, Tax Reform Act of 1986, transaction costs

My solution to this is to adopt new rules. Financial freedom occurs when your passive income (income that comes in when your money works for you) is greater than your monthly expenses. Thus, if you need $5,000 per month to live on, you become financially free when your passive income is greater than $5,000 per month. It’s that easy, and anyone with enough desire and commitment can do it. I’ve described the procedures in detail in my third book, Safe Strategies for Financial Freedom.9 In this book, I want to focus more on trading as a method of developing passive income. If you can generate enough income through trading or investing to meet your monthly expenses, and if the process requires only a few hours of your time each day, then I’m willing to call that income “passive income.”

Call 919-466-0043 for details, or go to www.iitm.com. 9. Van K. Tharp, Safe Strategies for Financial Freedom (New York: McGraw-Hill, 2004). 10. This must be a consistent return for you to count it as passive income. For example, if you are up 30 percent one month, 20 percent the next, down 25 percent the next, down 15 percent the next, and up 60 percent the next, I’d be reluctant to count any of it as passive income because it is not consistent and you cannot rely upon it. CHAPTER 2 Judgmental Biases: Why Mastering the Markets Is So Difficult for Most People We typically trade our beliefs about the market, and once we’ve made up our minds about those beliefs, we’re not likely to change them.

If you can generate enough income through trading or investing to meet your monthly expenses, and if the process requires only a few hours of your time each day, then I’m willing to call that income “passive income.” And through this process you can be financially free.10 Although you may have to spend several years learning the business of trading and developing a business plan and systems that fit your plan, once that is complete, you could be financially free by my definition. I’ve seen many people do it, and if you have the commitment and the desire to work on yourself as the key ingredient in your success, then you can do it too. I have divided this book into three primary parts: Part One is about self-discovery and moving yourself to a point where it’s possible for you to do market research.


Playing With FIRE (Financial Independence Retire Early): How Far Would You Go for Financial Freedom? by Scott Rieckens, Mr. Money Mustache

Airbnb, An Inconvenient Truth, cryptocurrency, do what you love, effective altruism, financial independence, index fund, job satisfaction, lifestyle creep, low interest rates, McMansion, Mr. Money Mustache, passive income, remote working, sunk-cost fallacy, The 4% rule, Vanguard fund

FIRE is a growing community of people of all types and income levels committed to lives of aggressive savings and low-cost investments in order to take control of their finances and buy back their most precious resource, time. The end goal is to achieve “FIRE,” the state of having INTRODUCTION TO FIRE enough passive income that you don’t need to work to pay your living expenses. Many people who reach FIRE keep working out of their passion for their fields, but plenty of others quit to travel the world, start nonprofits, pursue creative projects, or just live simply. In fact, despite the term “retire early” in the movement’s name, I’ve found the people in the FIRE community often reject the word retire and its implications; financial independence is about having the freedom and flexibility to pursue your true calling, whether or not it makes any money.

Over the years, he had saved a total of between twenty-five and twenty-eight times his annual spending and invested that money in Vanguard index funds (which wouldn’t be the last time I’d hear that recommendation!). Then, at thirty years old, Pete and his wife quit their cubicle jobs when their baby boy was born, since their investments were now creating enough passive income to recover their living expenses. He went on to say that this same basic formula works for most people. So 19 PLAYING WITH FIRE 20 all Taylor and I needed to do to retire was save twenty-five times our annual expenses? At the time, we were spending around $10,000 a month, which totaled about $120,000 a year, so that meant we needed to save a total of $3 million.

We knew our path to FI had to include all those things, so along the way, we took four mini-retirements, ranging from one month up to a year, traveled to twenty-seven countries, lived abroad, adopted four kids, and had two biological kids. PLAYING WITH FIRE In a Nutshell 46 ✓ It took us thirteen years to reach FI with an average annual income of $60,000. ✓ We took four mini-retirements along the way to travel, adopt our children, and build passive income with rentals. ✓ We live off Adam’s army pension, our rental income, and our investments. ✓ Early retirement has given us the resources and ability to adopt four foster kids. ✓ We paid cash for a $50,000 fixer house and did most of the renovating ourselves. The Hardest Part Retiring in our thirties has put a strain on some of our friendships.


pages: 80 words: 21,077

Stake Hodler Capitalism: Blockchain and DeFi by Amr Hazem Wahba Metwaly

altcoin, Amazon Web Services, bitcoin, blockchain, business process, congestion charging, COVID-19, crowdsourcing, cryptocurrency, Ethereum, ethereum blockchain, fiat currency, information security, Internet of things, Network effects, non-fungible token, passive income, prediction markets, price stability, Satoshi Nakamoto, seigniorage, Skype, smart contracts, underbanked, Vitalik Buterin

As the exciting new financial sector's progress continues, consumers' trend to participate in protocol growth has increased. Whether it's as simple as introducing a cryptocurrency to Compound for something more complex, like participating in Maker's liquidation auction, DeFi is opening up exciting new passive income opportunities. The yield farming technique is evolving and experimental, but the implications are amazing. On the general internet, you can't buy a product unless you give the website owner enough data required to activate the transaction, but with DeFi, you can borrow money without even disclosing your name or any personal information.

However, unreliable liquidity protocols and other DeFi products are at the forefront of economics, crypto-economics, and computer science. DeFi's money market can undoubtedly help create a more open and accessible financial system that anyone with an internet connection can access, which will bridge the gap between our lives on earth and rely on the human factor to potentially reach living on Mars. At the same time, we generate passive income from yield farming on earth-based securities. In future parts of the “Stake Hodler Capitalism” book series we intend to cover many applications of blockchain in depth including, smart contracts, Internet of Things, Retail, Agriculture, and Manufacturing.


pages: 268 words: 64,786

Cashing Out: Win the Wealth Game by Walking Away by Julien Saunders, Kiersten Saunders

barriers to entry, basic income, Big Tech, Black Monday: stock market crash in 1987, blockchain, COVID-19, cryptocurrency, death from overwork, digital divide, diversification, do what you love, Donald Trump, estate planning, financial independence, follow your passion, future of work, gig economy, glass ceiling, global pandemic, index fund, job automation, job-hopping, karōshi / gwarosa / guolaosi, lifestyle creep, Lyft, microaggression, multilevel marketing, non-fungible token, off-the-grid, passive income, passive investing, performance metric, ride hailing / ride sharing, risk tolerance, Salesforce, side hustle, TaskRabbit, TED Talk, Uber and Lyft, uber lyft, universal basic income, upwardly mobile, Vanguard fund, work culture , young professional

The movement can be defined as a group of savvy, unconventional, and mostly self-taught people who were managing their money in a way that allowed them to leave their jobs with little concern about ever running out of money. Many of the people we followed had built massive property portfolios or businesses and were generating more than enough passive income to live comfortably. By also reducing expenses and investing wisely, they were able to amass significant wealth and achieve the freedom we were looking for and in some cases retire early. This FIRE community had somehow found a way to cash out. Reading their blogs and listening to their podcasts was like watching financial X Games: it was different, shocking, and predominantly white.

If you choose otherwise, that’s your decision, and everyone should respect it. We certainly do. 3 | Independence The third purpose of income is to achieve independence. At this point, going to work to earn more money is completely optional. You will have already saved and invested enough money or built enough passive income to support your lifestyle. It’s easy to assume this stage of life is reserved only for the super-rich, but with the growth of the financial independence movement online and a historic bull market beginning in 2009, more working- and middle-class people are achieving this feat every single day.

., 198 O opportunities, evaluating, 129–30, 129 oppression, exposure to, 210 optimism blind, 62–63, 158 as motivator for difficult tasks, 194 options trading, 114 Orman, Suze, 155 ourrichjourney.com, 215 P parenthood and childcare costs, 30 uncertainty experienced in, 115 and work-life balance, 30 parents, supporting aging, 10, 70 passive income, 22, 65 paycheck to paycheck, living, 47, 77–78 paying yourself first, 118 PDFs, selling, 136 personality types, financial, 46–52 Fast Spenders type, 48–50, 51, 52, 61, 69 Financially Insecure type, 46–48, 50, 51, 52, 69, 233 the Middle type, 50–52 Pew Research Center, 36, 172–73 phones, faux connectedness from, 25 Playing with FIRE (documentary), 47 The Plug (Dorsey), 133 podcasts and Jannese’s success story, 124 learning about FI through, 217–18 and preferences of audiences, 145 thepointsguy.com, 131 Popcorn Finance (Browning), 218 poshmark.com, 135 positivity, pressure to sustain, 43 poverty and automation threat to employment, 126 cycle of, 47, 234 principles of cashing out, 36–41 embracing stealth wealth, 37–39 prioritizing purpose and community, 40–41 recognizing the Black tax, 39–40 “progress trap,” 64 public.com, 131 public health, negative impacts of work on, 31–32 purchasing power, impact of inflation on, 173 Purple, 91–94, 95 purpose(s) of income, 44–73 asking better questions about, 120 and Black buying power, 52–55 and breaking the consumerism cycle, 45 and financial personality types, 46–52 flexibility, 56, 60–65 freedom, 56, 56, 68–71 independence, 56, 65–68 lack of, 51–52 and retirement, 54–55 rules and richuals for, 72–73 security, 56–60, 56 and sinking funds, 119 Q quality of life, financial components of, 9 questions, asking better, 119–20 R racism, 39–40 “Raising a Family Index” (RAFI), 30 Ramsey, Dave, 155 Ray, Ola, 101–2 real estate agents, 61 real estate investing of authors, 6, 11, 87–88, 142, 143 income from, 22, 86 Kendra’s success story, 85, 86–87 1 percent rule in, 87 “Reality Check: Paycheck-to-Paycheck,” 77 reasons for cashing out freedom from burnout, 31–33 prioritizing family life, 29–30 safety from corporate change, 27–28 success on your terms, 28–29 time to do what you love, 25–26 regret/sacrifice, moments of, 100, 200–201 religious faith, 36–37 restaurants, dining in, 57 retirement difficulty saving for, 59 income’s role in preparing for, 55 lack of successful examples of, 22 and Middle personality type, 51 and pending crisis, 210 See also retirement accounts retirement accounts IRAs (individual retirement accounts), 94, 114 and matching by employers, 156, 176 maxing out, 94, 168 procrastinating on, 154–55 of self-employed, 176 See also 401(k)s; index funds rewarding yourself, 81–82 Rice, Bradley, 212 “richuals” (term), 17 ride-sharing companies, 131 risk managing feelings of, 116 and the myth of full confidence, 113–14 and uncertainty, 116 Rock, Chris, 33 role models, lack of relatable, 68 rounding-up programs at banks, 118–19 S S&P 500 index fund, 161, 163, 173, 230 sacrifice/regret, moments of, 100, 200–201 saving money/savings authors’ rate of, 11 conventional approach to, 226–27 conversations about, 193–94 and labeling people as “savers,” 191 lessons passed to children on, 226–27 low levels of, 4, 45 and Middle personality type, 50 reframing practice of, 193–94 sacrifices made for, 200–201 security as first purpose of income, 56–60, 56 self-care, 32 self-defeatist language, 15 self-doubt, overcoming, 18, 111 self-employment and retirement accounts, 176 self-reliance, 64–65 selling, 137–40 shame/shaming for buying preferences, 61 and defensiveness, 195 overcoming, 18 sharing, 213–14 Shopify, 137 short-term wants/needs, 63 sinking funds, 119 skills, cultivating marketable, 83, 87, 94, 99, 147 Skillshare, 137 slavery, legacy of, 3 snowball method to paying off debt, 80–81, 81 social issues, ability to engage with, 35 social media platforms and content creators, 141–45 FI community on, 216–17, 220–21 gurus/celebrity advisers on, 223 sharing strengths/wins on, 90 Souffrant, Jamila, 217 spending.


pages: 139 words: 33,246

Money Moments: Simple Steps to Financial Well-Being by Jason Butler

Albert Einstein, asset allocation, behavioural economics, buy and hold, Cass Sunstein, Cornelius Vanderbilt, diversified portfolio, estate planning, financial independence, fixed income, happiness index / gross national happiness, index fund, intangible asset, John Bogle, longitudinal study, loss aversion, Lyft, Mark Zuckerberg, mortgage debt, Mr. Money Mustache, passive income, placebo effect, Richard Thaler, ride hailing / ride sharing, Steve Jobs, time value of money, traffic fines, Travis Kalanick, Uber and Lyft, uber lyft, Vanguard fund, Yogi Berra

The old rule of thumb I was taught was to have at least six months’ worth of expenditure in a cash reserve, adjusted up or down depending on the situation and preferences. For example, if you are wholly reliant on your income from working, and your employer doesn’t offer more than basic state disability benefits, you’d probably want to hold nearer to six months’ expenses. However, if you have passive income (dividends, rental, royalties etc.) and a partner who also works, then you might feel fine holding just two or three months’ worth of expenses. But there is now a more robust and effective way to calculate and work towards building an adequate emergency cash reserve. HelloWallet is an independent, online and mobile financial wellness software application provided by US companies that employ over 2.5 million workers.

TABLE 1: TYPES OF EMERGENCY RECOMMENDATIONS AND HOW HELLOWALLET CALCULATE THEM TYPE OF EMERGENCY Minor emergency Minor Car Repair + Minor Home Repair + Healthcare Deductible Major emergency Maximum of: Major Car Repair; Major Home Repair; Out-of-pocket Healthcare Costs Job loss 1 Year of Expenses – Secondary Income for Year – Unemployment Benefits/passive income Source: HelloWallet Minor expenses are the most common but tend to be fleeting and have less impact and the researchers recommend people start saving for these expenses to build confidence and self-discipline The average suggested amounts, based on US data, are shown in table 2. TABLE 2: EXAMPLE OF MINOR EMERGENCY FUND RECOMMENDATION CALCULATION Source: HelloWallet Major expenses are less common but can have a big impact on family finances.


How to Form Your Own California Corporation by Anthony Mancuso

book value, business cycle, corporate governance, corporate raider, distributed generation, estate planning, independent contractor, information retrieval, intangible asset, passive income, passive investing, Silicon Valley

Most small business corporations don’t need to worry about being classified as PHCs and having to pay this tax, even if they have five or fewer shareholders. It’s usually easy to avoid by having a tax adviser tell you how to use a corporate services contract that won’t be classified as a personal services contract, and because most small corporations do not have significant passive income. Also, the PHC rules state that rental income and software royalties—two of the categories of passive income most likely to be earned by small corpor­ations—won’t be counted to determine if a corpor­ation is a PHC. Even if the IRS finds that a corporation is a PHC and assesses the surtax, the corporation can usually avoid the tax by making dividend payments (direct payments out of current earnings) and profits to shareholders.

Even if the IRS finds that a corporation is a PHC and assesses the surtax, the corporation can usually avoid the tax by making dividend payments (direct payments out of current earnings) and profits to shareholders. In other words, you can pay your profits to your shareholders, not to the IRS in the form of a PHC tax. The PHC rules are too complicated to fully explain. If your corporation has five or fewer shareholders and performs services or earns passive income, check with a tax advisor to make sure you avoid the PHC surtax. chapter 4 | corporate taxation | 75 Comparing Individual and Corporate Tax Rates and Payments for Owners of Smaller Corporations Incorporating and paying taxes as a corporate entity can result in business owners paying less tax on busi­ness income than they would pay as an individual.


pages: 197 words: 60,477

So Good They Can't Ignore You: Why Skills Trump Passion in the Quest for Work You Love by Cal Newport

adjacent possible, Apple II, bounce rate, business cycle, Byte Shop, Cal Newport, capital controls, clean tech, Community Supported Agriculture, deal flow, deliberate practice, do what you love, financial independence, follow your passion, Frank Gehry, information asymmetry, job satisfaction, job-hopping, knowledge worker, Mason jar, medical residency, new economy, passive income, Paul Terrell, popular electronics, renewable energy credits, Results Only Work Environment, Richard Bolles, Richard Feynman, rolodex, Sand Hill Road, side project, Silicon Valley, Skype, Steve Jobs, Steve Wozniak, Stuart Kauffman, TED Talk, web application, winner-take-all economy

Remember Jane from earlier in Rule #3: She dropped out of college with the vague idea that some sort of online business would support a lifestyle of adventure. If she had met Derek Sivers, she would have delayed this move until she had real evidence that she could make money online. In this case, the law would have served its purpose well, as a simple experiment would have likely revealed that passive-income websites are more myth than reality, and thus prevented her rash abandonment of her education. This doesn’t mean that Jane would have had to resign herself to a life of boring work. On the contrary, the law could have provided her structure to keep exploring variations on her adventurous life vision until she could find one to pursue that would actually yield results.

The first trap was having too little career capital. If you go after more control in your working life without a rare and valuable skill to offer in return, you’re likely pursuing a mirage. This was the trap tripped, for example, by the many fans of lifestyle design, who left their traditional jobs to try to make a living on passive income-generating websites. Many of these contrarians quickly discovered that the income-generating piece of that plan doesn’t work well if you don’t have something valuable to offer in exchange for people’s money. This trap might not seem relevant to my job hunt, as the academic-search process usually demands large stores of career capital—in the form of peer-reviewed publications and strong recommendation letters—before a candidate has a possibility of earning an offer.


pages: 396 words: 113,613

Chokepoint Capitalism by Rebecca Giblin, Cory Doctorow

Aaron Swartz, AltaVista, barriers to entry, Berlin Wall, Bernie Sanders, Big Tech, big-box store, Black Lives Matter, book value, collective bargaining, commoditize, coronavirus, corporate personhood, corporate raider, COVID-19, disintermediation, distributed generation, Fairchild Semiconductor, fake news, Filter Bubble, financial engineering, Firefox, forensic accounting, full employment, gender pay gap, George Akerlof, George Floyd, gig economy, Golden age of television, Google bus, greed is good, green new deal, high-speed rail, Hush-A-Phone, independent contractor, index fund, information asymmetry, Jeff Bezos, John Gruber, Kickstarter, laissez-faire capitalism, low interest rates, Lyft, Mark Zuckerberg, means of production, microplastics / micro fibres, Modern Monetary Theory, moral hazard, multi-sided market, Naomi Klein, Network effects, New Journalism, passive income, peak TV, Peter Thiel, precision agriculture, regulatory arbitrage, remote working, rent-seeking, ride hailing / ride sharing, Robert Bork, Saturday Night Live, shareholder value, sharing economy, Silicon Valley, SoftBank, sovereign wealth fund, Steve Jobs, Steven Levy, stock buybacks, surveillance capitalism, Susan Wojcicki, tech bro, tech worker, The Chicago School, The Wealth of Nations by Adam Smith, TikTok, time value of money, transaction costs, trickle-down economics, Turing complete, Uber and Lyft, uber lyft, union organizing, Vanguard fund, vertical integration, WeWork

It’s the majors’ oligopsony status, the report finds, that is enabling them to “disproportionately benefit” from music streaming relative to the creators they purport to represent: “This has resulted in record high levels of income and profit growth and historic levels of profitability for the major labels whilst performers’ incomes average less than the median wage.”15 Jake Beaumont-Nesbitt, policy advisor to the International Music Managers Forum, says these copyright reservoirs disadvantage newer labels who have less back catalog to supply them with passive income. “Building an audience for a new artist in the distraction economy takes a rolling campaign of content and communication over many months,” he told us. “It’s all high risk in an immensely competitive and unpredictable market; losses are normal. Established labels with evergreen catalogues can offset that R&D risk against established income, new self-releasing artists or labels cannot.”16 Control over catalog doesn’t just enable the majors to vacuum up the value of the music of the past—it also allows them to charge rent to today’s new artists.

The ability to take rights for the entire copyright also gives the biggest players compounding advantages over smaller rivals. As we’ve seen, three record companies, three music publishers (owned by those same record companies), and five book publishers have industrially aggregated the copyrights of most of the world’s most valuable sound recordings, songs, and books. All that backlist generates passive income, which translates into bigger margins than their independent rivals. They use it to lobby for more advantageous regulatory treatment and to outbid competitors on the most lucrative new projects. It also gives them the muscle to negotiate the best deals with distributors. Though all book publishers and record labels have been ground down by Amazon and YouTube, it’s the independents that have lost the most: they’re the gazelles targeted to bleed out bigger and bigger discounts.

The EU’s 2019 Copyright Directive requires member states to implement laws giving authors and performers the right to revoke their transfers of rights where there has been a lack of exploitation.28 Countries elsewhere should consider following suit. You can readily imagine how much more hospitable a world with time-limited contracts would be to creative workers. The biggest buyers wouldn’t be able to count on forever having passive income from their backlists or catalog, because if they didn’t treat their creators well, they’d risk losing them to competitors. New business models would find it easier to emerge. There would be less freedom to strong-arm creators into unfair deals, and less freedom to avoid fixing outdated or unfair terms.


Early Retirement Guide: 40 is the new 65 by Manish Thakur

Airbnb, diversified portfolio, financial independence, hedonic treadmill, index fund, lifestyle creep, Lyft, passive income, passive investing, risk tolerance, Robert Shiller, side hustle, time value of money, uber lyft, Vanguard fund, William Bengen, Zipcar

A different way to handle the risk of a bad economy is to have more saved up in your investment egg than the 25x suggested amount that most people go with. It's still good to adjust your withdrawal rate a little but it won't have to be a significantly smaller nest egg. The third option to fight this risk is to diversify your income streams. Instead of just investing in stocks and bonds, you could also own a rental property, create passive income streams, and develop skills that you can use to quickly use to make money in a pinch, such as developing websites for small businesses. What if I lose my job and can't find work? The good news is that being unemployed isn't as bad as people make it out to be. It's a rare opportunity to reflect, search for a job that better fits our goals, and of course spend more time with our loved ones.


pages: 156 words: 15,746

Personal Finance with Python by Max Humber

asset allocation, backtesting, bitcoin, cryptocurrency, data science, Dogecoin, en.wikipedia.org, Ethereum, passive income, web application

But when the numbers are reversed—that is to say that the IRR exceeds the cost of borrowing—you should invest! =IRR() At this point in our imaginary example we’re in for $3,000. But instead of doubling our money, let’s bring things ever so slightly back to Earth and pretend that our Dogecoin rig generates $1,000 in passive income each year over the next four years. date income expenses 0 2017-01-01 0 -3000 1 2018-01-01 1000 0 2 2019-01-01 1000 0 3 2020-01-01 1000 0 4 2021-01-01 1000 0 To calculate the IRR for this example, we can fire up Excel, total up the inflows and outflows, and use the built-in =IRR() formula to get what we need. date income expenses total 0 2017-01-01 0 -3000 -3000 1 2018-01-01 1000 0 1000 2 2019-01-01 1000 0 1000 3 2020-01-01 1000 0 1000 4 2021-01-01 1000 0 1000 If total is in Excel column D, then applying the formula =IRR(D0:D4) will get us something close to 13 percent.


pages: 282 words: 81,873

Live Work Work Work Die: A Journey Into the Savage Heart of Silicon Valley by Corey Pein

"World Economic Forum" Davos, 23andMe, 4chan, affirmative action, Affordable Care Act / Obamacare, Airbnb, Amazon Mechanical Turk, Anne Wojcicki, artificial general intelligence, bank run, barriers to entry, Benevolent Dictator For Life (BDFL), Bernie Sanders, Big Tech, bitcoin, Bitcoin Ponzi scheme, Build a better mousetrap, California gold rush, cashless society, colonial rule, computer age, cryptocurrency, data is the new oil, deep learning, digital nomad, disruptive innovation, Donald Trump, Douglas Hofstadter, driverless car, Elon Musk, Evgeny Morozov, Extropian, fail fast, fake it until you make it, fake news, gamification, gentrification, gig economy, Google bus, Google Glasses, Google X / Alphabet X, Greyball, growth hacking, hacker house, Hacker News, hive mind, illegal immigration, immigration reform, independent contractor, intentional community, Internet of things, invisible hand, Isaac Newton, Jeff Bezos, job automation, Kevin Kelly, Khan Academy, Larry Ellison, Law of Accelerating Returns, Lean Startup, life extension, Lyft, Mahatma Gandhi, Marc Andreessen, Mark Zuckerberg, Menlo Park, minimum viable product, move fast and break things, mutually assured destruction, Neal Stephenson, obamacare, Parker Conrad, passive income, patent troll, Patri Friedman, Paul Graham, peer-to-peer lending, Peter H. Diamandis: Planetary Resources, Peter Thiel, platform as a service, plutocrats, Ponzi scheme, post-work, public intellectual, Ray Kurzweil, regulatory arbitrage, rent control, RFID, Robert Mercer, rolodex, Ronald Reagan, Ross Ulbricht, Ruby on Rails, Sam Altman, Sand Hill Road, Scientific racism, self-driving car, selling pickaxes during a gold rush, sharing economy, side project, Silicon Valley, Silicon Valley billionaire, Silicon Valley startup, Singularitarianism, Skype, Snapchat, Social Justice Warrior, social software, software as a service, source of truth, South of Market, San Francisco, Startup school, stealth mode startup, Steve Bannon, Steve Jobs, Steve Wozniak, TaskRabbit, tech billionaire, tech bro, tech worker, TechCrunch disrupt, technological singularity, technoutopianism, telepresence, too big to fail, Travis Kalanick, tulip mania, Tyler Cowen, Uber for X, uber lyft, ubercab, unit 8200, upwardly mobile, Vernor Vinge, vertical integration, Virgin Galactic, X Prize, Y Combinator, Zenefits

The book also marked a transition for Corey, as he spent less time doing the labor-intensive Web design and more time searching for the cold fusion of internet marketing: “passive income.” This was shorthand for a variety of techniques whereby one could generate wealth while sitting around doing nothing. Some were proven yet not easily attainable, such as living off the compound interest from one’s investments and savings. Others—unlike Corey’s methods—were elaborate, unworkable, or illegal, such as pyramid schemes and spambot-powered credit card fraud. Compared to more reliable methods of generating passive income, like inheriting a trust fund, these scams had a relatively low barrier to entry.


Crushing It! EPB by Gary Vaynerchuk

augmented reality, driverless car, fear of failure, follow your passion, imposter syndrome, Mark Zuckerberg, passive income, ride hailing / ride sharing, rolodex, Rubik’s Cube, Saturday Night Live, side hustle, Silicon Valley, Skype, Snapchat, TED Talk

If I can bring awareness to them and get more of the brands that I work with to have a better representation of the entire sewing community, not just a part of the community, then I’ve done my job. 5 The Only Thing You Need to Give Yourself to Crush It PERMISSION www.garyvaynerchuk.com/permission How I’m Crushing It Pat Flynn, Smart Passive Income IG: @patflynn Pat Flynn had planned to be an architect since the days when he was a straight-A high school student. After graduating magna cum laude from UC-Berkeley, he quickly landed a job with a renowned architectural firm in the Bay Area, where he became one of the youngest people ever to become job captain.

was the sole reason why I was able to grow my income to what it is now, but I went bigger, that’s for sure. I started to produce more things instead of being just a blogger. I started to look for other ways to expand beyond my realm of comfort.” And expand he did. He started a YouTube channel in 2009. In 2010, he launched the Smart Passive Income podcast, which has seen more than forty million downloads. In 2011, he started accepting offers to speak. To provide a space to answer the deluge of questions he gets from his followers, he then created a daily Ask Pat podcast, as well as a few others to address niche subjects. His self-published book was a Wall Street Journal best seller.


pages: 1,239 words: 163,625

The Joys of Compounding: The Passionate Pursuit of Lifelong Learning, Revised and Updated by Gautam Baid

Abraham Maslow, activist fund / activist shareholder / activist investor, Airbnb, Alan Greenspan, Albert Einstein, Alvin Toffler, Andrei Shleifer, asset allocation, Atul Gawande, availability heuristic, backtesting, barriers to entry, beat the dealer, Benoit Mandelbrot, Bernie Madoff, bitcoin, Black Swan, book value, business process, buy and hold, Cal Newport, Cass Sunstein, Checklist Manifesto, Clayton Christensen, cognitive dissonance, collapse of Lehman Brothers, commoditize, corporate governance, correlation does not imply causation, creative destruction, cryptocurrency, Daniel Kahneman / Amos Tversky, deep learning, delayed gratification, deliberate practice, discounted cash flows, disintermediation, disruptive innovation, Dissolution of the Soviet Union, diversification, diversified portfolio, dividend-yielding stocks, do what you love, Dunning–Kruger effect, Edward Thorp, Elon Musk, equity risk premium, Everything should be made as simple as possible, fear index, financial independence, financial innovation, fixed income, follow your passion, framing effect, George Santayana, Hans Rosling, hedonic treadmill, Henry Singleton, hindsight bias, Hyman Minsky, index fund, intangible asset, invention of the wheel, invisible hand, Isaac Newton, it is difficult to get a man to understand something, when his salary depends on his not understanding it, Jeff Bezos, John Bogle, Joseph Schumpeter, junk bonds, Kaizen: continuous improvement, Kickstarter, knowledge economy, Lao Tzu, Long Term Capital Management, loss aversion, Louis Pasteur, low interest rates, Mahatma Gandhi, mandelbrot fractal, margin call, Mark Zuckerberg, Market Wizards by Jack D. Schwager, Masayoshi Son, mental accounting, Milgram experiment, moral hazard, Nate Silver, Network effects, Nicholas Carr, offshore financial centre, oil shock, passive income, passive investing, pattern recognition, Peter Thiel, Ponzi scheme, power law, price anchoring, quantitative trading / quantitative finance, Ralph Waldo Emerson, Ray Kurzweil, Reminiscences of a Stock Operator, reserve currency, Richard Feynman, Richard Thaler, risk free rate, risk-adjusted returns, Robert Shiller, Savings and loan crisis, search costs, shareholder value, six sigma, software as a service, software is eating the world, South Sea Bubble, special economic zone, Stanford marshmallow experiment, Steve Jobs, Steven Levy, Steven Pinker, stocks for the long run, subscription business, sunk-cost fallacy, systems thinking, tail risk, Teledyne, the market place, The Signal and the Noise by Nate Silver, The Wisdom of Crowds, time value of money, transaction costs, tulip mania, Upton Sinclair, Walter Mischel, wealth creators, Yogi Berra, zero-sum game

As Steve Jobs once remarked, “You can’t connect the dots looking forward; you can only connect them looking backwards. So you have to trust that the dots will somehow connect in your future. You have to trust in something—your gut, destiny, life, karma, whatever.” In short, you need to have faith. • At some point, your investments will earn enough passive income to support your living expenses. This is when you achieve financial independence. It doesn’t matter what you do during the day, because you earn enough money while you are sleeping. Many people choose to continue along one of the paths above: (1) employee-based career, (2) active business management, or (3) actively managing their investments.4 Munger’s life teaches us that just showing up every day and chipping away at it, one small block at a time, eventually yields great dividends.

These costs do not show up in profit-and-loss (P&L) statements because a P&L does not reflect what they could have done but did not do. Investors need to regularly review their estimate of the expected long-term return from a stock based on the current market price. If it falls below the return available on existing passive income instruments, then it is time to replace that stock with a superior one. Many investors fall in love with their existing holdings (especially if they have identified it after a lot of hard work) and subsequently engage in lazy thinking and do not conduct a rigorous opportunity cost analysis on a regular basis.

Robert Maurer and Darren Hardy enlightened me on the incredible power of compounding small, consistent, positive actions over a long period of time. Gillian Zoe Segal and Scott Adams showed me how one can fail repeatedly and still win big. Guy Spier, Vishal Khandelwal, and Morgan Housel inspired me to become a better human being. Robert Kiyosaki taught me how to make money work for me by building assets to generate regular passive income. George Clason taught me the fundamental first rule of building wealth: pay yourself first. Thomas Stanley, William Danko, David Bach, and Harv Eker taught me the virtues of frugality. Shane Parrish and Professor Sanjay Bakshi taught me how goodwill compounds when we generously share knowledge with others.


pages: 346 words: 102,625

Early Retirement Extreme by Jacob Lund Fisker

8-hour work day, active transport: walking or cycling, barriers to entry, book value, buy and hold, caloric restriction, caloric restriction, clean water, Community Supported Agriculture, delayed gratification, discounted cash flows, diversification, dogs of the Dow, don't be evil, dumpster diving, Easter island, fake it until you make it, financial engineering, financial independence, game design, index fund, invention of the steam engine, inventory management, junk bonds, lateral thinking, lifestyle creep, loose coupling, low interest rates, market bubble, McMansion, passive income, peak oil, place-making, planned obsolescence, Plato's cave, Ponzi scheme, power law, psychological pricing, retail therapy, risk free rate, sunk-cost fallacy, systems thinking, tacit knowledge, the scientific method, time value of money, Tragedy of the Commons, transaction costs, wage slave, working poor

In particular, they become increasingly important for anyone who accumulates more and more assets. It's strange how specialists gladly spend a great deal of time perfecting their skills to pursue a five percent raise, while at the same time there is a fatalistic tendency to accept whatever investment strategies are currently fashionable on Wall Street when it comes to generating passive income.30 When investments become fashionable (a result of emergent behavior of a system), by definition they no longer offer good returns, even though they have historically when only used by a few people. Handing over responsibility for one's savings does not make sense, especially for anyone whose investment income is comparable to one's expenses or worse, one's job income.31 Such a person is not just an employee, but an asset manager as well.

It would thus be possible to literally run small errands, like picking up small items from the supermarket, and anyone who does this on a regular basis is bound to end up with sustained low-intensity endurance and a resting pulse lower than 50 beats per minute. If you managed to arrange your residence to be less than three miles from anything, you wouldn't even need a bicycle. In that case, I would walk to work, which would take 60 minutes that could be used for meditation, brainstorming or calculating your passive income from your savings in as many ways as you can think of, and then run home, which would take about 20 minutes. When shopping, I'd run with an empty backpack and then walk a full backpack home. It is a more minimalist approach than the bicycle option. Cycling Statistically, cycling is about as dangerous as driving a standard-sized car--SUVs are a little bit more dangerous because of rollovers and the increased difficulty of swerving out of the way in a bigger vehicle.97 However, many bike riders are killed because they ride in the wrong direction or on the sidewalk.


pages: 572 words: 94,002

Reset: How to Restart Your Life and Get F.U. Money: The Unconventional Early Retirement Plan for Midlife Careerists Who Want to Be Happy by David Sawyer

"World Economic Forum" Davos, Abraham Maslow, Airbnb, Albert Einstein, asset allocation, beat the dealer, bitcoin, Black Monday: stock market crash in 1987, Cal Newport, cloud computing, cognitive dissonance, content marketing, crowdsourcing, cryptocurrency, currency risk, David Attenborough, David Heinemeier Hansson, Desert Island Discs, diversification, diversified portfolio, Edward Thorp, Elon Musk, fake it until you make it, fake news, financial independence, follow your passion, gig economy, Great Leap Forward, hiring and firing, imposter syndrome, index card, index fund, invention of the wheel, John Bogle, knowledge worker, loadsamoney, low skilled workers, Mahatma Gandhi, Mark Zuckerberg, meta-analysis, mortgage debt, Mr. Money Mustache, passive income, passive investing, Paul Samuelson, pension reform, risk tolerance, Robert Shiller, Ronald Reagan, Silicon Valley, Skype, smart meter, Snapchat, stakhanovite, Steve Jobs, sunk-cost fallacy, TED Talk, The 4% rule, Tim Cook: Apple, Vanguard fund, William Bengen, work culture , Y Combinator

Take succour from Gary Vaynerchuk’s observation that: “you’re always one great piece of content away from changing your life. Everyone you know started off as an unknown until they did the thing that made them known[149].” If you do prove interesting, and people dig your worldview, consider making money from it[150]. It’s hardly passive income (blogging is hard work), but money earned from limited display adverts or affiliate marketing on your blog is not to be sneered at. Trust me, financial independence bloggers are funding their early retirement, without touching their capital, by following this route[151]. Last, try different tactics.

Let’s start with 12 essential disciplines for those who want to achieve financial independence: It’s your net worth that matters, not your salary. Know the difference between assets and liabilities. Build your assets[248]. Minimise your taxes. Make money while you sleep by maximising your passive income. Avoid debt, apart from your mortgage. Understand consumerism. Learn the difference between needs and wants. Wants are insatiable. Take care of every pound. Keep expenses low and save as much as you can every month. In your career, seek knowledge. Take jobs for what you can learn, not what they pay.


pages: 484 words: 104,873

Rise of the Robots: Technology and the Threat of a Jobless Future by Martin Ford

3D printing, additive manufacturing, Affordable Care Act / Obamacare, AI winter, algorithmic management, algorithmic trading, Amazon Mechanical Turk, artificial general intelligence, assortative mating, autonomous vehicles, banking crisis, basic income, Baxter: Rethink Robotics, Bernie Madoff, Bill Joy: nanobots, bond market vigilante , business cycle, call centre, Capital in the Twenty-First Century by Thomas Piketty, carbon tax, Charles Babbage, Chris Urmson, Clayton Christensen, clean water, cloud computing, collateralized debt obligation, commoditize, computer age, creative destruction, data science, debt deflation, deep learning, deskilling, digital divide, disruptive innovation, diversified portfolio, driverless car, Erik Brynjolfsson, factory automation, financial innovation, Flash crash, Ford Model T, Fractional reserve banking, Freestyle chess, full employment, general purpose technology, Geoffrey Hinton, Goldman Sachs: Vampire Squid, Gunnar Myrdal, High speed trading, income inequality, indoor plumbing, industrial robot, informal economy, iterative process, Jaron Lanier, job automation, John Markoff, John Maynard Keynes: technological unemployment, John von Neumann, Kenneth Arrow, Khan Academy, Kiva Systems, knowledge worker, labor-force participation, large language model, liquidity trap, low interest rates, low skilled workers, low-wage service sector, Lyft, machine readable, machine translation, manufacturing employment, Marc Andreessen, McJob, moral hazard, Narrative Science, Network effects, new economy, Nicholas Carr, Norbert Wiener, obamacare, optical character recognition, passive income, Paul Samuelson, performance metric, Peter Thiel, plutocrats, post scarcity, precision agriculture, price mechanism, public intellectual, Ray Kurzweil, rent control, rent-seeking, reshoring, RFID, Richard Feynman, Robert Solow, Rodney Brooks, Salesforce, Sam Peltzman, secular stagnation, self-driving car, Silicon Valley, Silicon Valley billionaire, Silicon Valley startup, single-payer health, software is eating the world, sovereign wealth fund, speech recognition, Spread Networks laid a new fibre optics cable between New York and Chicago, stealth mode startup, stem cell, Stephen Hawking, Steve Jobs, Steven Levy, Steven Pinker, strong AI, Stuxnet, technological singularity, telepresence, telepresence robot, The Bell Curve by Richard Herrnstein and Charles Murray, The Coming Technological Singularity, The Future of Employment, the long tail, Thomas L Friedman, too big to fail, Tragedy of the Commons, Tyler Cowen, Tyler Cowen: Great Stagnation, uber lyft, union organizing, Vernor Vinge, very high income, warehouse automation, warehouse robotics, Watson beat the top human players on Jeopardy!, women in the workforce

Clearly, if a guaranteed income is means-tested, then this should happen at a relatively high level, preferably well into middle-class territory. A person who decides to forego other earning opportunities then faces a long fall. Another good idea would be to discriminate between active and passive income. A guaranteed income might be means-tested aggressively against passive income such as a pension, investment income, or Social Security. Active income like wages from a job, self-employment income, or earnings from a small business either would not be means-tested at all or would occur at a much higher level. This should ensure a consistent incentive for everyone to work as hard as possible, given the opportunities available.


pages: 179 words: 42,081

DeFi and the Future of Finance by Campbell R. Harvey, Ashwin Ramachandran, Joey Santoro, Vitalik Buterin, Fred Ehrsam

activist fund / activist shareholder / activist investor, bank run, barriers to entry, bitcoin, blockchain, collateralized debt obligation, crowdsourcing, cryptocurrency, David Graeber, Ethereum, ethereum blockchain, fault tolerance, fiat currency, fixed income, Future Shock, initial coin offering, Jane Street, margin call, money: store of value / unit of account / medium of exchange, Network effects, non-fungible token, passive income, peer-to-peer, prediction markets, rent-seeking, RFID, risk tolerance, Robinhood: mobile stock trading app, Satoshi Nakamoto, seigniorage, smart contracts, transaction costs, Vitalik Buterin, yield curve, zero-coupon bond

Liquidity providers earn these fees based on their pro rata contribution to the liquidity pool and therefore prefer high-volume markets. This mechanism of earning fees is identical to the cToken model of Compound. The ownership stake is represented by a similar token called a UNI token. For example, the token representing ownership in the DAI/ETH pool is UNI DAI/ETH. Liquidity providers in Uniswap essentially earn passive income in proportion to the volume on the market they are supplying. On withdrawal, however, the exchange rate of the underlying assets will almost certainly have changed. This shift creates an opportunity–cost dynamic (impermanent loss) that arises because the liquidity provider could simply hold the underlying assets and profit from the price movement.


pages: 170 words: 46,126

The 1% Rule: How to Fall in Love With the Process and Achieve Your Wildest Dreams by Tommy Baker

Cal Newport, delayed gratification, deliberate practice, Elon Musk, Kaizen: continuous improvement, knowledge worker, Paradox of Choice, Parkinson's law, passive income, side hustle, solopreneur, Steve Jobs

You won’t be spiritually on fire after three meditation sessions. You won’t have a six pack after hiking your local mountain once. Hate to break it to you, but this is real life. I can’t tell you how many times someone has told me about their latest venture and how it’s guaranteed to bring in $20,000 a month in passive income. A few weeks later, I’ll go to the site they created and it no longer exists. Their expectations were a level 10, yet they didn’t have the courage to go through the ugly, intense, and sometimes excruciating process of creation. Sure, there are unicorns in life, but I’m not putting my life on the line for a mystical creature — even a cute one.


pages: 168 words: 50,647

The End of Jobs: Money, Meaning and Freedom Without the 9-To-5 by Taylor Pearson

Airbnb, barriers to entry, Ben Horowitz, Black Swan, call centre, cloud computing, commoditize, content marketing, creative destruction, David Heinemeier Hansson, drop ship, Elon Musk, en.wikipedia.org, Frederick Winslow Taylor, future of work, Google Hangouts, Hacker Conference 1984, Kaizen: continuous improvement, Kevin Kelly, Kickstarter, knowledge economy, knowledge worker, loss aversion, low skilled workers, Lyft, Marc Andreessen, Mark Zuckerberg, market fragmentation, means of production, Oculus Rift, passive income, passive investing, Peter Thiel, power law, remote working, Ronald Reagan: Tear down this wall, scientific management, sharing economy, side hustle, side project, Silicon Valley, Skype, software as a service, software is eating the world, Startup school, Steve Jobs, Steve Wozniak, Stewart Brand, systems thinking, TED Talk, telemarketer, the long tail, Thomas Malthus, Uber and Lyft, uber lyft, unpaid internship, Watson beat the top human players on Jeopardy!, web application, Whole Earth Catalog

Compound interest on “float” (the money currently in their insurance businesses from paid premiums until claims are paid it out) is powerful for them because they are compounding billions of dollars. If you have $10 million and lend it out at a 5% interest rate then you’d be getting $41,666 in passive income every month. That’s without ever touching the principal $10 million sitting in the bank. Not bad. If you build a company and sell it for a few million dollars, then compound interest is powerful. While the math and logic behind the Fast Lane vs. Slow Lane has always been true, the internet and economic changes we’ve discussed have made the entrepreneurial path more accessible and the potential gains larger.


pages: 186 words: 49,251

The Automatic Customer: Creating a Subscription Business in Any Industry by John Warrillow

Airbnb, airport security, Amazon Web Services, asset allocation, barriers to entry, call centre, cloud computing, commoditize, David Heinemeier Hansson, discounted cash flows, Hacker Conference 1984, high net worth, Jeff Bezos, Network effects, passive income, rolodex, Salesforce, sharing economy, side project, Silicon Valley, Silicon Valley startup, software as a service, statistical model, Steve Jobs, Stewart Brand, subscription business, telemarketer, the long tail, time value of money, zero-sum game, Zipcar

We’ll discuss why automatic customers buy more than one-shot customers and why subscription revenue is stickier than a one-time purchase. Part Two is divided into minichapters on the nine subscription business models. As you’ll see, you have a variety of choices when it comes to building a recurring revenue stream for your business. Whether you want to transform your entire business or just pick up a few thousand dollars of passive income, you’ll get a ton of new ideas for applying the subscription model to your company. The third and final section of The Automatic Customer gives you the blueprint for building your subscription business. We’ll discuss a handful of key statistics that will define the viability of your subscription and highlight one ratio you must achieve in order to scale up.


pages: 198 words: 59,351

The Internet Is Not What You Think It Is: A History, a Philosophy, a Warning by Justin E. H. Smith

3D printing, Ada Lovelace, Adrian Hon, agricultural Revolution, algorithmic management, artificial general intelligence, Big Tech, Charles Babbage, clean water, coronavirus, COVID-19, cryptocurrency, dark matter, disinformation, Donald Trump, drone strike, Elon Musk, game design, gamification, global pandemic, GPT-3, Internet of things, Isaac Newton, Jacquard loom, Jacques de Vaucanson, Jaron Lanier, jimmy wales, Joseph-Marie Jacquard, Kuiper Belt, Mark Zuckerberg, Marshall McLuhan, meme stock, new economy, Nick Bostrom, Norbert Wiener, packet switching, passive income, Potemkin village, printed gun, QAnon, Ray Kurzweil, Republic of Letters, Silicon Valley, Skype, strong AI, technological determinism, theory of mind, TikTok, Tragedy of the Commons, trolley problem, Turing machine, Turing test, you are the product

In time, we might expect that the moral character, or perhaps merely the coolness or popularity, of people will be judged not on anything they actually say, but on the character of the bots that shadow them. In 2040, we might check in on how our digital personae are doing in the same way we periodically check our stocks: just as we now monitor our passive income, we may someday soon do the same for our passive selves; perhaps these selves, too, will be assigned a social-credit rating, whether called by that or some other name, to which we can appeal, or that we will seek to conceal, when we are maneuvering for elite university entry, or a new job or a first date.


pages: 864 words: 272,918

Palo Alto: A History of California, Capitalism, and the World by Malcolm Harris

2021 United States Capitol attack, Aaron Swartz, affirmative action, air traffic controllers' union, Airbnb, Alan Greenspan, Alvin Toffler, Amazon Mechanical Turk, Amazon Web Services, Apple II, Apple's 1984 Super Bowl advert, back-to-the-land, bank run, Bear Stearns, Big Tech, Bill Gates: Altair 8800, Black Lives Matter, Bob Noyce, book scanning, British Empire, business climate, California gold rush, Cambridge Analytica, capital controls, Charles Lindbergh, classic study, cloud computing, collective bargaining, colonial exploitation, colonial rule, Colonization of Mars, commoditize, company town, computer age, conceptual framework, coronavirus, corporate personhood, COVID-19, cuban missile crisis, deindustrialization, Deng Xiaoping, desegregation, deskilling, digital map, double helix, Douglas Engelbart, Edward Snowden, Elon Musk, Erlich Bachman, estate planning, European colonialism, Fairchild Semiconductor, financial engineering, financial innovation, fixed income, Frederick Winslow Taylor, fulfillment center, future of work, Garrett Hardin, gentrification, George Floyd, ghettoisation, global value chain, Golden Gate Park, Google bus, Google Glasses, greed is good, hiring and firing, housing crisis, hydraulic fracturing, if you build it, they will come, illegal immigration, immigration reform, invisible hand, It's morning again in America, iterative process, Jeff Bezos, Joan Didion, John Markoff, joint-stock company, Jony Ive, Kevin Kelly, Kickstarter, knowledge worker, land reform, Larry Ellison, Lean Startup, legacy carrier, life extension, longitudinal study, low-wage service sector, Lyft, manufacturing employment, Marc Andreessen, Marc Benioff, Mark Zuckerberg, Marshall McLuhan, Max Levchin, means of production, Menlo Park, Metcalfe’s law, microdosing, Mikhail Gorbachev, military-industrial complex, Monroe Doctrine, Mont Pelerin Society, moral panic, mortgage tax deduction, Mother of all demos, move fast and break things, mutually assured destruction, new economy, Oculus Rift, off grid, oil shale / tar sands, PageRank, PalmPilot, passive income, Paul Graham, paypal mafia, Peter Thiel, pets.com, phenotype, pill mill, platform as a service, Ponzi scheme, popular electronics, power law, profit motive, race to the bottom, radical life extension, RAND corporation, Recombinant DNA, refrigerator car, Richard Florida, ride hailing / ride sharing, rising living standards, risk tolerance, Robert Bork, Robert Mercer, Robert Metcalfe, Ronald Reagan, Salesforce, San Francisco homelessness, Sand Hill Road, scientific management, semantic web, sexual politics, Sheryl Sandberg, Silicon Valley, Silicon Valley ideology, Silicon Valley startup, social web, SoftBank, software as a service, sovereign wealth fund, special economic zone, Stanford marshmallow experiment, Stanford prison experiment, stem cell, Steve Bannon, Steve Jobs, Steve Wozniak, Steven Levy, Stewart Brand, stock buybacks, strikebreaker, Suez canal 1869, super pumped, TaskRabbit, tech worker, Teledyne, telemarketer, the long tail, the new new thing, thinkpad, Thorstein Veblen, Tim Cook: Apple, Tony Fadell, too big to fail, Toyota Production System, Tragedy of the Commons, transcontinental railway, traumatic brain injury, Travis Kalanick, TSMC, Uber and Lyft, Uber for X, uber lyft, ubercab, union organizing, Upton Sinclair, upwardly mobile, urban decay, urban renewal, value engineering, Vannevar Bush, vertical integration, Vision Fund, W. E. B. Du Bois, War on Poverty, warehouse robotics, Wargames Reagan, Washington Consensus, white picket fence, William Shockley: the traitorous eight, women in the workforce, Y Combinator, Y2K, Yogi Berra, éminence grise

In the first volume of his memoir, he recounts failing only one class (German), but getting zero As. He had, as he put it, too many “other yens and occupations in noncurricular activities.”1 These included a paper route and a laundry service that he established and then subcontracted to other students for streams of passive income. After an unspectacular stretch as a shortstop on the baseball team, he found a niche where he fit better, as the team’s manager. What Hoover was really good at was organizing. He had a talent for handling situations in a dignified manner, and at a time when Anglo California was still establishing its social structure, that talent was in high demand.

of the Hoover Dam power output, before criticism forced him to reduce it to 9 percent.16 Harry Chandler—conservative publisher of the Los Angeles Times, Stanford dad, and Hoover’s confederate on the university board—became the city’s most important capitalist by riding the Hoover real estate and manufacturing boom into the 1930s. These men poured the concrete foundation for what was shaping up to be California’s century. In his last full-time job before committing to public service and passive income, Hoover went around reviving “sick” mines with a rationalized approach—or at least convincing investors that’s what he was doing. As a national leader, he endeavored to perform the same function but for whole industries. America was supposed to be the land of dynamism, but a number of the country’s advanced economic sectors were languishing, especially compared to how quickly Germany and Japan were developing under neo-imperial systems.

His plan was to build skyward, creating “steeples of excellence”—specific exceptional competencies in growing ACE subfields that made Stanford an irresistible lure for federal and private research funds. Terman began with the technology that had produced Stanford’s biggest prewar invention, the Varian klystron (which remained a source of passive income for the university), and in January of 1945 he talked the new president, Donald Tresidder, out of $25,000 to found the (not “a” or “Stanford,” “the”) Microwave Lab. It was a drop in the bucket, but Fred knew where to find the spigot: He nabbed an Office of Naval Research–led government grant for $225,000—annually.5 Terman’s relationship with the ONR was downright cozy, and his timing was great.


pages: 179 words: 59,704

Meet the Frugalwoods: Achieving Financial Independence Through Simple Living by Elizabeth Willard Thames

Airbnb, asset allocation, barriers to entry, basic income, behavioural economics, buy and hold, carbon footprint, delayed gratification, dumpster diving, East Village, financial independence, food desert, hedonic treadmill, IKEA effect, index fund, indoor plumbing, lifestyle creep, loss aversion, low interest rates, McMansion, mortgage debt, passive income, payday loans, risk tolerance, side hustle, Stanford marshmallow experiment, universal basic income, working poor

I think it’s telling that, despite a capacity to own more rental properties, Nate and I choose to stick with just this one. In many cases, there’s a lot of risk and volatility involved with serving as a landlord, although it’s also true that the return can be much greater than what one would experience in the stock market. All that is to say, it’s another avenue for investing and generating passive income, but one that should be exhaustively researched. A donor advised fund. Nate and I have a donor advised fund (DAF), which is a tax-advantaged vehicle through which we contribute to charities every year. DAFs allow donors to take a tax deduction for the full amount of their contribution to their fund in the calendar year that the contribution was made.


pages: 194 words: 59,336

The Simple Path to Wealth: Your Road Map to Financial Independence and a Rich, Free Life by J L Collins

asset allocation, Bernie Madoff, Black Monday: stock market crash in 1987, buy and hold, compound rate of return, currency risk, diversification, financial independence, full employment, German hyperinflation, index fund, inverted yield curve, John Bogle, lifestyle creep, low interest rates, money market fund, Mr. Money Mustache, nuclear winter, passive income, payday loans, risk tolerance, side hustle, The 4% rule, Vanguard fund, yield curve

Most importantly, I know I’m well under the 6-7% level that requires close attention. Given the above, going forward my guess is it will drop to under 4%. Within that 3-7% range, the key to choosing your own rate has less to do with the numbers than with your personal flexibility. If as needed you can readily adjust your living expenses, find work to supplement your passive income and/or are willing and able to comfortably relocate to less expensive places, you will have a far more secure retirement no matter what rate you choose. Happier too I’d guess. If you are locked into certain income needs, unwilling or unable to ever work again and your roots go too deep to ever seek out greener pastures, you’ll need to be much more careful.


pages: 201 words: 60,431

Long Game: How Long-Term Thinker Shorthb by Dorie Clark

3D printing, autonomous vehicles, Big Tech, Blue Ocean Strategy, buy low sell high, cognitive load, corporate social responsibility, COVID-19, crowdsourcing, delayed gratification, digital nomad, driverless car, Elon Musk, fail fast, Google X / Alphabet X, hedonic treadmill, Jeff Bezos, knowledge worker, lake wobegon effect, Lean Startup, lockdown, minimum viable product, passive income, pre–internet, rolodex, self-driving car, side project, Silicon Valley, Silicon Valley ideology, Silicon Valley startup, Skype, solopreneur, Stanford marshmallow experiment, Steven Levy, the strength of weak ties, Walter Mischel, zero-sum game

It’s also useful for corporate employees who are interested in launching a side gig. If you enjoyed the discussion in The Long Game about how to develop strategic, low-risk career experiments with large potential upsides, Entrepreneurial You is worth checking out. I lay out strategies to help you learn how to start coaching or consulting on the side, and how to create passive income streams. Learn more at https://dorieclark.com/entrepreneurialyou. Recognized Expert. If you’re a professional—either self-employed or working inside a company—that wants to make a bigger impact and become a recognized expert in your field, this course is for you. Recognized Expert is both an intensive course (with more than fifty hours of high-quality content) and an active online community of more than six hundred smart and generous professionals.


pages: 192 words: 72,822

Freedom Without Borders by Hoyt L. Barber

accounting loophole / creative accounting, Affordable Care Act / Obamacare, Albert Einstein, banking crisis, diversification, El Camino Real, estate planning, fiat currency, financial engineering, financial independence, fixed income, high net worth, illegal immigration, interest rate swap, money market fund, obamacare, offshore financial centre, passive income, quantitative easing, reserve currency, road to serfdom, selective serotonin reuptake inhibitor (SSRI), subprime mortgage crisis, too big to fail

Website: www.brasilemb.org. Costa Rica Tourist Stay: Visa required for stays up to 90 days. Passport/Residency: Two types of residency programs: (1) Retired persons who bring in more than US $600 a month from an established retirement plan for at least five years; (2) a person with a guaranteed passive income from a recognized source of at least US $1,000 a month for the same period. These sums must be converted into the local currency at the official exchange rate. Dual citizenship is acceptable. The new resident is required to at least spend four months of the year in the country. Taxes: Foreign-source income is tax exempt, but if you earn income within Costa Rica, you will be subject to its income tax law and taxed on income and profits accordingly.


pages: 200 words: 63,266

Die With Zero: Getting All You Can From Your Money and Your Life by Bill Perkins

delayed gratification, Downton Abbey, financial independence, follow your passion, Google Earth, Gordon Gekko, Kickstarter, lateral thinking, Own Your Own Home, passive income, rent control, Richard Thaler, risk tolerance, Stanford marshmallow experiment, time value of money, Walter Mischel

When you buy stock in, say, IBM, you are hoping that you will be able to sell the stock later for more than you bought it for or at least be able to earn dividends that IBM issues to shareholders, a teeny-tiny fraction of the company’s profits every year. Are you with me so far? The same with real estate: You buy a house that you think you can resell for a profit in a few years, and in the meantime you can rent it out and generate passive income every month, as long as your tenants pay the rent. If you own a business that makes widgets, and you buy a new machine that will crank out widgets twice as fast, with fewer defects, then the new machine is an investment in your business. Standard, right? Now think about how to extend this idea, which we do all the time without necessarily thinking about it in terms of investment.


pages: 230 words: 76,655

Choose Yourself! by James Altucher

Airbnb, Albert Einstein, Bernie Madoff, bitcoin, cashless society, cognitive bias, dark matter, digital rights, do what you love, Elon Musk, estate planning, John Bogle, junk bonds, Mark Zuckerberg, mirror neurons, money market fund, Network effects, new economy, PageRank, passive income, pattern recognition, payday loans, Peter Thiel, Ponzi scheme, Rodney Brooks, rolodex, Salesforce, Saturday Night Live, sharing economy, short selling, side project, Silicon Valley, Skype, software as a service, Steve Jobs, superconnector, Uber for X, Vanguard fund, Virgin Galactic, Y2K, Zipcar

Find something people want and start posting information about it on a blog and then upsell your services on the blog. Or write 1000 small books about different topics and publish them on Amazon. You can do this on the side while you learn and have a full time job and then when you are ready, you can jump to your other passive streams of income. Note: It takes a lot of work to find “passive” income but when it happens, it’s worth it. These are some ideas. There are many others. 2. Invest in experiences rather than possessions. Figure out interesting and unique experiences you can have or places you can go to (but they don’t always have to be places). Experiences pay much higher dividends than an extra TV or a nicer car. 3.


pages: 300 words: 76,638

The War on Normal People: The Truth About America's Disappearing Jobs and Why Universal Basic Income Is Our Future by Andrew Yang

3D printing, Airbnb, assortative mating, augmented reality, autonomous vehicles, basic income, Bear Stearns, behavioural economics, Ben Horowitz, Bernie Sanders, call centre, corporate governance, cryptocurrency, data science, David Brooks, DeepMind, Donald Trump, Elon Musk, falling living standards, financial deregulation, financial engineering, full employment, future of work, global reserve currency, income inequality, Internet of things, invisible hand, Jeff Bezos, job automation, John Maynard Keynes: technological unemployment, Khan Academy, labor-force participation, longitudinal study, low skilled workers, Lyft, manufacturing employment, Mark Zuckerberg, megacity, meritocracy, Narrative Science, new economy, passive income, performance metric, post-work, quantitative easing, reserve currency, Richard Florida, ride hailing / ride sharing, risk tolerance, robo advisor, Ronald Reagan, Rutger Bregman, Sam Altman, San Francisco homelessness, self-driving car, shareholder value, Silicon Valley, Simon Kuznets, single-payer health, Stephen Hawking, Steve Ballmer, supercomputer in your pocket, tech worker, technoutopianism, telemarketer, The future is already here, The Wealth of Nations by Adam Smith, traumatic brain injury, Tyler Cowen, Tyler Cowen: Great Stagnation, Uber and Lyft, uber lyft, unemployed young men, universal basic income, urban renewal, warehouse robotics, white flight, winner-take-all economy, Y Combinator

Setting a Freedom Dividend of $12,000 a year would enable one to barely scrape by. Anyone who wants to accomplish anything, buy something nice, or build a better life for their children will still have to work. Twelve thousand dollars a year is the equivalent of having $300,000 in savings and then living off the passive income at 4 percent a year. Have you ever heard of someone who gathered $300,000 and then just stopped working? I haven’t. I have seen many people who saved some money and then wanted to save more. Andy Stern jokes that most of the upper-middle-class children he knows have something called “parental basic income”: their lives are partially subsidized by their parents.


pages: 256 words: 15,765

The New Elite: Inside the Minds of the Truly Wealthy by Dr. Jim Taylor

Alan Greenspan, Alvin Toffler, British Empire, business cycle, call centre, Cornelius Vanderbilt, dark matter, Donald Trump, estate planning, full employment, glass ceiling, income inequality, Jeff Bezos, Larry Ellison, longitudinal study, Louis Pasteur, Maui Hawaii, McMansion, means of production, passive income, performance metric, plutocrats, Plutonomy: Buying Luxury, Explaining Global Imbalances, Ronald Reagan, stealth mode startup, Steve Jobs, Thorstein Veblen, trickle-down economics, vertical integration, women in the workforce, zero-sum game

Less well known, but with almost an equal impact, have been changes in the financial markets and government regulation. Set aside your political preconceptions: Much of it started with the ‘‘Reagan Revolution.’’ On August 23, 1981, the Reagan administra- The Wealth of the Nation 37 tion changed the American tax code in a way that fostered capital markets. Essentially, the top tax rate for unearned income (passive income from investments) was reduced from a little over 70 percent to either the top tax rate for earned income if the investor is a ‘‘partner’’ in a company, or to the top tax rate for capital gains if the investor is ‘‘passive’’—that is, plays no management role in a company. These changes, seemingly obscure, shifted the risks of investing.


pages: 237 words: 74,109

Uncanny Valley: A Memoir by Anna Wiener

autonomous vehicles, back-to-the-land, basic income, behavioural economics, Blitzscaling, blockchain, blood diamond, Burning Man, call centre, charter city, cloud computing, cognitive bias, cognitive dissonance, commoditize, crowdsourcing, cryptocurrency, dark triade / dark tetrad, data science, digital divide, digital nomad, digital rights, end-to-end encryption, Extropian, functional programming, future of work, gentrification, Golden Gate Park, growth hacking, guns versus butter model, housing crisis, Jane Jacobs, job automation, knowledge worker, Lean Startup, means of production, medical residency, microaggression, microapartment, microdosing, new economy, New Urbanism, Overton Window, passive income, Plato's cave, pull request, rent control, ride hailing / ride sharing, San Francisco homelessness, Sand Hill Road, self-driving car, sharing economy, Shenzhen special economic zone , side project, Silicon Valley, Silicon Valley startup, Social Justice Warrior, social web, South of Market, San Francisco, special economic zone, subprime mortgage crisis, systems thinking, tech bro, tech worker, technoutopianism, telepresence, telepresence robot, union organizing, universal basic income, unpaid internship, urban planning, urban renewal, warehouse robotics, women in the workforce, work culture , Y2K, young professional

Four of the six apartments in my rent-controlled building were occupied by middle-aged couples, some of whom had been there since at least the last boom; they were familiar with the rhetoric of community and revolution, had heard it all before. The recent flood of euphoric young people in pursuit of professional adventure, and the flood of cash that followed, was stressful, not impressive. I suspected no one in our building was in the market for a passive-income property, or a million-dollar condo. I suspected they all just wanted to stay. The real estate brochures came hard and fast. They began to address the building’s owner, who did not live there, and offered enticements to flip. Hi neighbor! they chirped. I wanted to share the big news about recently sold homes in your area.


pages: 292 words: 76,185

Pivot: The Only Move That Matters Is Your Next One by Jenny Blake

Airbnb, Albert Einstein, Cal Newport, cloud computing, content marketing, data is the new oil, diversified portfolio, do what you love, East Village, en.wikipedia.org, Erik Brynjolfsson, fear of failure, future of work, high net worth, Jeff Bezos, job-hopping, Kevin Kelly, Khan Academy, knowledge worker, Lao Tzu, Lean Startup, minimum viable product, Nate Silver, passive income, Ralph Waldo Emerson, risk tolerance, Second Machine Age, sharing economy, side hustle, side project, Silicon Valley, Silicon Valley startup, Skype, Snapchat, software as a service, solopreneur, Startup school, stem cell, TED Talk, too big to fail, Tyler Cowen, white picket fence, young professional, zero-sum game

Figuring out a source of bridge income and steady cash flow, either part time or on the side, puts the power in your hands and will make you more confident and agile when you do make a change, or if change chooses you. In identifying bridge income, we are going for consistent cash flow, not a Hail Mary, a long shot with much greater risk. Now is not the time to bet big on a passive income play to build a business that earns money while you sleep. Something like that is fine for a longer-term move, but only if you can offset it with more reliable income in the meantime, or are willing to burn through your savings runway to build it. Trading time for money often gets a bad rap.


pages: 244 words: 73,700

Cultish: The Language of Fanaticism by Amanda Montell

barriers to entry, behavioural economics, BIPOC, Black Lives Matter, classic study, cognitive dissonance, coronavirus, COVID-19, Donald Trump, en.wikipedia.org, epigenetics, fake news, financial independence, Girl Boss, growth hacking, hive mind, Jeff Bezos, Jeffrey Epstein, Keith Raniere, Kickstarter, late capitalism, lockdown, loss aversion, LuLaRoe, Lyft, multilevel marketing, off-the-grid, passive income, Peoples Temple, Phoebe Waller-Bridge, Ponzi scheme, prosperity theology / prosperity gospel / gospel of success, QAnon, Ronald Reagan, Russell Brand, Sapir-Whorf hypothesis, Search for Extraterrestrial Intelligence, side hustle, Silicon Valley, Skype, Social Justice Warrior, Stanford prison experiment, Steve Jobs, sunk-cost fallacy, tech bro, the scientific method, TikTok, uber lyft, women in the workforce, Y2K

Creeping along the influence continuum toward Scientology, these figures will cajole you into buying their e-book, then their meditation playlist, then their online hypnosis course, and by that point, your spiritual journey would be worthless if you didn’t sign up for a workshop or retreat. For you, it might feel like the quest for self-actualization, but for them, it’s a profitable, scalable, passive-income-generating cash cow. Ghafari points out that when an online guru uses too much “absolutist language,” that’s New Age scammer red flag number one. “Anyone who talks about the concept of feeling our past, our inner trauma, in a universal, oversimplified way,” she clarifies. “For example, statements like, ‘All of us are traumatized as kids, which is why we need to x, y, z,’ or, ‘All of us are from the cosmos and we’re just floating in a quantum field, blah blah blah.’”


pages: 305 words: 79,303

The Four: How Amazon, Apple, Facebook, and Google Divided and Conquered the World by Scott Galloway

"Susan Fowler" uber, activist fund / activist shareholder / activist investor, additive manufacturing, Affordable Care Act / Obamacare, Airbnb, Amazon Robotics, Amazon Web Services, Apple II, autonomous vehicles, barriers to entry, Ben Horowitz, Bernie Sanders, Big Tech, big-box store, Bob Noyce, Brewster Kahle, business intelligence, California gold rush, Cambridge Analytica, cloud computing, Comet Ping Pong, commoditize, cuban missile crisis, David Brooks, Didi Chuxing, digital divide, disintermediation, don't be evil, Donald Trump, Elon Musk, fake news, follow your passion, fulfillment center, future of journalism, future of work, global supply chain, Google Earth, Google Glasses, Google X / Alphabet X, Hacker Conference 1984, Internet Archive, invisible hand, Jeff Bezos, Jony Ive, Khan Academy, Kiva Systems, longitudinal study, Lyft, Mark Zuckerberg, meta-analysis, Network effects, new economy, obamacare, Oculus Rift, offshore financial centre, passive income, Peter Thiel, profit motive, race to the bottom, RAND corporation, ride hailing / ride sharing, risk tolerance, Robert Mercer, Robert Shiller, Search for Extraterrestrial Intelligence, self-driving car, sentiment analysis, shareholder value, Sheryl Sandberg, Silicon Valley, Snapchat, software is eating the world, speech recognition, Stephen Hawking, Steve Ballmer, Steve Bannon, Steve Jobs, Steve Wozniak, Stewart Brand, supercomputer in your pocket, Tesla Model S, the long tail, Tim Cook: Apple, Travis Kalanick, Uber and Lyft, Uber for X, uber lyft, undersea cable, vertical integration, warehouse automation, warehouse robotics, Wayback Machine, Whole Earth Catalog, winner-take-all economy, working poor, you are the product, young professional

Cash compensation will improve your lifestyle, but not your wealth—it isn’t enough, and saving is counterintuitive and just plain hard. High-income individuals tend to flock together, and what we see, we covet. It’s surprisingly easy to get used to business class. The definition of rich is when your passive income exceeds your nut (what you need to live). My dad, collecting $45,000 in social security and cash flow from investments, is rich, as he spends $40,000/year. I have several friends in finance who make seven figures who are not rich, as the moment they stop working, they are shit out of luck. The path to rich(es) is a path of living below your means and investing in income-producing assets.


Green Economics: An Introduction to Theory, Policy and Practice by Molly Scott Cato

Albert Einstein, back-to-the-land, banking crisis, banks create money, basic income, Bretton Woods, Buy land – they’re not making it any more, carbon footprint, carbon tax, central bank independence, clean water, Community Supported Agriculture, congestion charging, corporate social responsibility, David Ricardo: comparative advantage, degrowth, deskilling, energy security, food miles, Food sovereignty, Fractional reserve banking, full employment, gender pay gap, green new deal, income inequality, informal economy, intentional community, Intergovernmental Panel on Climate Change (IPCC), job satisfaction, land bank, land reform, land value tax, Mahatma Gandhi, market fundamentalism, Money creation, mortgage debt, Multi Fibre Arrangement, passive income, peak oil, price stability, profit maximization, profit motive, purchasing power parity, race to the bottom, reserve currency, Rupert Read, seminal paper, the built environment, The Spirit Level, Tobin tax, tontine, University of East Anglia, wikimedia commons

When apparently logical man-made systems create obviously unnecessary suffering, humans can sometimes take a step back, spot the defect and correct it, starting at local level. So it is with the money system. Currently it is clearly cruel and dangerous, leaving millions of people out while trillions of money is hoarded and unstable bubbles of ‘derived’ money, debt and ‘passive income’ streams abound. South Africa has one of the most sophisticated systems of trading through complementary currencies in the world, including widespread LETS systems. A nationwide alternative currency, based in Cape Town, is the Talent Exchange. Talents are traded in Cape Town between some 2000 members.


pages: 286 words: 87,168

Less Is More: How Degrowth Will Save the World by Jason Hickel

air freight, Airbnb, Anthropocene, basic income, Bernie Sanders, Big bang: deregulation of the City of London, biodiversity loss, Boris Johnson, Bretton Woods, British Empire, capital controls, circular economy, cognitive dissonance, coronavirus, corporate governance, corporate personhood, cotton gin, COVID-19, David Graeber, decarbonisation, declining real wages, degrowth, deindustrialization, dematerialisation, disinformation, Elon Musk, energy transition, Extinction Rebellion, extractivism, Fairphone, Fellow of the Royal Society, flying shuttle, Fractional reserve banking, Francis Fukuyama: the end of history, full employment, gender pay gap, green new deal, Greta Thunberg, income inequality, Intergovernmental Panel on Climate Change (IPCC), invention of the steam engine, James Watt: steam engine, Jeff Bezos, Jevons paradox, John Maynard Keynes: Economic Possibilities for our Grandchildren, land reform, liberal capitalism, lockdown, longitudinal study, low interest rates, Mahatma Gandhi, Mark Zuckerberg, McMansion, means of production, meta-analysis, microbiome, Money creation, moral hazard, mortgage debt, Murray Bookchin, Naomi Klein, negative emissions, new economy, ocean acidification, offshore financial centre, oil shale / tar sands, opioid epidemic / opioid crisis, out of africa, passive income, planetary scale, planned obsolescence, plutocrats, Post-Keynesian economics, quantitative easing, rent control, rent-seeking, retail therapy, Ronald Reagan, Rupert Read, Scramble for Africa, secular stagnation, shareholder value, sharing economy, Simon Kuznets, structural adjustment programs, the scientific method, The Spirit Level, transatlantic slave trade, trickle-down economics, universal basic income

The problem with this kind of inequality is that the rich become extractive rentiers. As they accumulate money and property far beyond what they could ever use, they rent it out (be it residential or commercial properties, patent licences, loans, whatever). And because they have a monopoly on these things, everyone else is forced to pay them rents and debts. This is called ‘passive income’, because it accrues automatically to people who hold capital without any labour on their part. But from the perspective of everyone else it is anything but passive: people have to scramble to work and earn above and beyond what they would otherwise need, simply in order to pay rents and debts to the rich.


pages: 295 words: 87,204

The Capitalist Manifesto by Johan Norberg

AltaVista, anti-communist, barriers to entry, Berlin Wall, Bernie Sanders, Big Tech, Boris Johnson, business climate, business cycle, capital controls, Capital in the Twenty-First Century by Thomas Piketty, carbon footprint, carbon tax, Charles Babbage, computer age, coronavirus, COVID-19, creative destruction, crony capitalism, data is not the new oil, data is the new oil, David Graeber, DeepMind, degrowth, deindustrialization, Deng Xiaoping, digital map, disinformation, Donald Trump, Elon Musk, energy transition, Erik Brynjolfsson, export processing zone, failed state, Filter Bubble, gig economy, Gini coefficient, global supply chain, Google Glasses, Greta Thunberg, Gunnar Myrdal, Hans Rosling, Hernando de Soto, Howard Zinn, income inequality, independent contractor, index fund, Indoor air pollution, industrial robot, Intergovernmental Panel on Climate Change (IPCC), invention of the printing press, invisible hand, Jeff Bezos, Jeremy Corbyn, job automation, job satisfaction, Joseph Schumpeter, land reform, liberal capitalism, lockdown, low cost airline, low interest rates, low skilled workers, Lyft, manufacturing employment, Mark Zuckerberg, means of production, meta-analysis, Minecraft, multiplanetary species, Naomi Klein, Neal Stephenson, Nelson Mandela, Network effects, open economy, passive income, Paul Graham, Paul Samuelson, payday loans, planned obsolescence, precariat, profit motive, Ralph Nader, RAND corporation, rent control, rewilding, ride hailing / ride sharing, Ronald Coase, Rosa Parks, Salesforce, Sam Bankman-Fried, Shenzhen was a fishing village, Silicon Valley, Simon Kuznets, Snapchat, social distancing, social intelligence, South China Sea, Stephen Fry, Steve Jobs, tech billionaire, The Spirit Level, The Wealth of Nations by Adam Smith, TikTok, Tim Cook: Apple, total factor productivity, trade liberalization, transatlantic slave trade, Tyler Cowen, Uber and Lyft, uber lyft, ultimatum game, Virgin Galactic, Washington Consensus, working-age population, World Values Survey, X Prize, you are the product, zero-sum game

They have got lots of zeros after the dollar sign in their bank account, but the rest of us got a better, simpler, more comfortable life that would have made grandpa’s grandma’s grandpa’s grandma faint from rapture. The 1 per cent But how many of the super-rich are like Gates and Kamprad? Aren’t they more often people who sit on large inheritances and passive incomes? The French economist Thomas Piketty has shown that income from interest and gains on capital grow faster than growth (r > g) and that inherited properties just grow and grow until a small elite has almost everything. In the acclaimed Capital in the Twenty-First Century, Piketty therefore advocates what he himself calls ‘confiscatory taxes’ to squeeze the rich.


pages: 288 words: 86,995

Rule of the Robots: How Artificial Intelligence Will Transform Everything by Martin Ford

AI winter, Airbnb, algorithmic bias, algorithmic trading, Alignment Problem, AlphaGo, Amazon Mechanical Turk, Amazon Web Services, artificial general intelligence, Automated Insights, autonomous vehicles, backpropagation, basic income, Big Tech, big-box store, call centre, carbon footprint, Chris Urmson, Claude Shannon: information theory, clean water, cloud computing, commoditize, computer age, computer vision, Computing Machinery and Intelligence, coronavirus, correlation does not imply causation, COVID-19, crowdsourcing, data is the new oil, data science, deep learning, deepfake, DeepMind, Demis Hassabis, deskilling, disruptive innovation, Donald Trump, Elon Musk, factory automation, fake news, fulfillment center, full employment, future of work, general purpose technology, Geoffrey Hinton, George Floyd, gig economy, Gini coefficient, global pandemic, Googley, GPT-3, high-speed rail, hype cycle, ImageNet competition, income inequality, independent contractor, industrial robot, informal economy, information retrieval, Intergovernmental Panel on Climate Change (IPCC), Internet of things, Jeff Bezos, job automation, John Markoff, Kiva Systems, knowledge worker, labor-force participation, Law of Accelerating Returns, license plate recognition, low interest rates, low-wage service sector, Lyft, machine readable, machine translation, Mark Zuckerberg, Mitch Kapor, natural language processing, Nick Bostrom, Northpointe / Correctional Offender Management Profiling for Alternative Sanctions, Ocado, OpenAI, opioid epidemic / opioid crisis, passive income, pattern recognition, Peter Thiel, Phillips curve, post scarcity, public intellectual, Ray Kurzweil, recommendation engine, remote working, RFID, ride hailing / ride sharing, Robert Gordon, Rodney Brooks, Rubik’s Cube, Sam Altman, self-driving car, Silicon Valley, Silicon Valley startup, social distancing, SoftBank, South of Market, San Francisco, special economic zone, speech recognition, stealth mode startup, Stephen Hawking, superintelligent machines, TED Talk, The Future of Employment, The Rise and Fall of American Growth, the scientific method, Turing machine, Turing test, Tyler Cowen, Tyler Cowen: Great Stagnation, Uber and Lyft, uber lyft, universal basic income, very high income, warehouse automation, warehouse robotics, Watson beat the top human players on Jeopardy!, WikiLeaks, women in the workforce, Y Combinator

Distributing income unconditionally to every adult American will cost trillions, and voters are likely to recoil at the idea of sending monthly checks to the already well-off. I think there may be opportunities to effectively phase out the UBI at higher incomes, without impacting the incentive to work. The best way to do this might be to means-test a UBI against only “passive income.” If you already have significant income that comes to you automatically, without any need for work or action on your part—if you receive a pension, Social Security or substantial investment income—then I think it would be reasonable to phase out or eliminate a UBI payment accordingly. Active income that results from work or direct management of a business would not affect the UBI, except perhaps at a very high income level.


pages: 669 words: 210,153

Tools of Titans: The Tactics, Routines, and Habits of Billionaires, Icons, and World-Class Performers by Timothy Ferriss

Abraham Maslow, Adam Curtis, Airbnb, Alexander Shulgin, Alvin Toffler, An Inconvenient Truth, artificial general intelligence, asset allocation, Atul Gawande, augmented reality, back-to-the-land, Ben Horowitz, Bernie Madoff, Bertrand Russell: In Praise of Idleness, Beryl Markham, billion-dollar mistake, Black Swan, Blue Bottle Coffee, Blue Ocean Strategy, blue-collar work, book value, Boris Johnson, Buckminster Fuller, business process, Cal Newport, call centre, caloric restriction, caloric restriction, Carl Icahn, Charles Lindbergh, Checklist Manifesto, cognitive bias, cognitive dissonance, Colonization of Mars, Columbine, commoditize, correlation does not imply causation, CRISPR, David Brooks, David Graeber, deal flow, digital rights, diversification, diversified portfolio, do what you love, Donald Trump, effective altruism, Elon Musk, fail fast, fake it until you make it, fault tolerance, fear of failure, Firefox, follow your passion, fulfillment center, future of work, Future Shock, Girl Boss, Google X / Alphabet X, growth hacking, Howard Zinn, Hugh Fearnley-Whittingstall, Jeff Bezos, job satisfaction, Johann Wolfgang von Goethe, John Markoff, Kevin Kelly, Kickstarter, Lao Tzu, lateral thinking, life extension, lifelogging, Mahatma Gandhi, Marc Andreessen, Mark Zuckerberg, Mason jar, Menlo Park, microdosing, Mikhail Gorbachev, MITM: man-in-the-middle, Neal Stephenson, Nelson Mandela, Nicholas Carr, Nick Bostrom, off-the-grid, optical character recognition, PageRank, Paradox of Choice, passive income, pattern recognition, Paul Graham, peer-to-peer, Peter H. Diamandis: Planetary Resources, Peter Singer: altruism, Peter Thiel, phenotype, PIHKAL and TIHKAL, post scarcity, post-work, power law, premature optimization, private spaceflight, QWERTY keyboard, Ralph Waldo Emerson, Ray Kurzweil, recommendation engine, rent-seeking, Richard Feynman, risk tolerance, Ronald Reagan, Salesforce, selection bias, sharing economy, side project, Silicon Valley, skunkworks, Skype, Snapchat, Snow Crash, social graph, software as a service, software is eating the world, stem cell, Stephen Hawking, Steve Jobs, Stewart Brand, superintelligent machines, TED Talk, Tesla Model S, The future is already here, the long tail, The Wisdom of Crowds, Thomas L Friedman, traumatic brain injury, trolley problem, vertical integration, Wall-E, Washington Consensus, We are as Gods, Whole Earth Catalog, Y Combinator, zero-sum game

.* Took my daily caffeine intake (read: self-medication) so high that my “resting” pulse was 120+ beats per minute. 8 to 10 cups of coffee per day at minimum. Wore the same pair of jeans for a week straight just to have a much-needed constant during weeks of chaos. Seems pretty dysfunctional, right? But, in the last 8 weeks of that same period, I also: Increased my passive income 20%+. Bought my dream house. Meditated twice per day for 20 minutes per session, without fail. That marked the first time I’d been able to meditate consistently. Ended up cutting my caffeine intake to next-to-nothing (in the last 4 weeks): usually pu-erh tea in the morning and green tea in the afternoon.

Listed in alphabetical order by first name (and if I forgot anyone, please let me know): Jason DeFillippo of Grumpy Old Geeks John Lee Dumas of Entrepreneur on Fire Jordan Harbinger of The Art of Charm Lewis Howes of The School of Greatness Matt Lieber and Alex Blumberg of Gimlet Media Pat Flynn of Smart Passive Income and Rob Walch of Libsyn Last but not least, this book is dedicated to my parents, who have guided, encouraged, loved, and consoled me through it all. I love you more than words can express. About the Author TIM FERRISS is one of Fast Company’s “Most Innovative Business People” and one of Forbes’s “Names You Need to Know.”


pages: 327 words: 90,542

The Age of Stagnation: Why Perpetual Growth Is Unattainable and the Global Economy Is in Peril by Satyajit Das

"there is no alternative" (TINA), "World Economic Forum" Davos, 9 dash line, accounting loophole / creative accounting, additive manufacturing, Airbnb, Alan Greenspan, Albert Einstein, Alfred Russel Wallace, Anthropocene, Anton Chekhov, Asian financial crisis, banking crisis, Bear Stearns, Berlin Wall, bitcoin, bond market vigilante , Bretton Woods, BRICs, British Empire, business cycle, business process, business process outsourcing, call centre, capital controls, Capital in the Twenty-First Century by Thomas Piketty, carbon tax, Carmen Reinhart, Clayton Christensen, cloud computing, collaborative economy, colonial exploitation, computer age, creative destruction, cryptocurrency, currency manipulation / currency intervention, David Ricardo: comparative advantage, declining real wages, Deng Xiaoping, deskilling, digital divide, disintermediation, disruptive innovation, Downton Abbey, Emanuel Derman, energy security, energy transition, eurozone crisis, financial engineering, financial innovation, financial repression, forward guidance, Francis Fukuyama: the end of history, full employment, geopolitical risk, gig economy, Gini coefficient, global reserve currency, global supply chain, Goldman Sachs: Vampire Squid, Great Leap Forward, Greenspan put, happiness index / gross national happiness, high-speed rail, Honoré de Balzac, hydraulic fracturing, Hyman Minsky, illegal immigration, income inequality, income per capita, indoor plumbing, informal economy, Innovator's Dilemma, intangible asset, Intergovernmental Panel on Climate Change (IPCC), it is difficult to get a man to understand something, when his salary depends on his not understanding it, It's morning again in America, Jane Jacobs, John Maynard Keynes: technological unemployment, junk bonds, Kenneth Rogoff, Kevin Roose, knowledge economy, knowledge worker, Les Trente Glorieuses, light touch regulation, liquidity trap, Long Term Capital Management, low interest rates, low skilled workers, Lyft, Mahatma Gandhi, margin call, market design, Marshall McLuhan, Martin Wolf, middle-income trap, Mikhail Gorbachev, military-industrial complex, Minsky moment, mortgage debt, mortgage tax deduction, new economy, New Urbanism, offshore financial centre, oil shale / tar sands, oil shock, old age dependency ratio, open economy, PalmPilot, passive income, peak oil, peer-to-peer lending, pension reform, planned obsolescence, plutocrats, Ponzi scheme, Potemkin village, precariat, price stability, profit maximization, pushing on a string, quantitative easing, race to the bottom, Ralph Nader, Rana Plaza, rent control, rent-seeking, reserve currency, ride hailing / ride sharing, rising living standards, risk/return, Robert Gordon, Robert Solow, Ronald Reagan, Russell Brand, Satyajit Das, savings glut, secular stagnation, seigniorage, sharing economy, Silicon Valley, Simon Kuznets, Slavoj Žižek, South China Sea, sovereign wealth fund, Stephen Fry, systems thinking, TaskRabbit, The Chicago School, The Great Moderation, The inhabitant of London could order by telephone, sipping his morning tea in bed, the various products of the whole earth, the market place, the payments system, The Spirit Level, Thorstein Veblen, Tim Cook: Apple, too big to fail, total factor productivity, trade route, transaction costs, uber lyft, unpaid internship, Unsafe at Any Speed, Upton Sinclair, Washington Consensus, We are the 99%, WikiLeaks, Y2K, Yom Kippur War, zero-coupon bond, zero-sum game

In 2012, among developed economies, the US had the highest share of relatively low-paying jobs, primarily in leisure, healthcare, and hospitality. Over recent decades, these forces, combined with the decline in unionization and the power of organized labor, increased income inequality. The concentrated ownership of property, financial assets, and investments is linked to inequality. The share of passive income, such as interest, dividends, rents, and profits, while volatile, has increased over time, relative to income from labor. In 2010, the wealthiest 10 percent of US households owned 70 percent of all wealth, while the top 1 percent owned 35 percent. The bottom 50 percent of households owned 5 percent.


pages: 350 words: 90,898

A World Without Email: Reimagining Work in an Age of Communication Overload by Cal Newport

Cal Newport, call centre, Claude Shannon: information theory, cognitive dissonance, collaborative editing, Compatible Time-Sharing System, computer age, COVID-19, creative destruction, data science, David Heinemeier Hansson, fault tolerance, Ford Model T, Frederick Winslow Taylor, future of work, Garrett Hardin, hive mind, Inbox Zero, interchangeable parts, it's over 9,000, James Watt: steam engine, Jaron Lanier, John Markoff, John Nash: game theory, Joseph Schumpeter, Kanban, Kickstarter, knowledge worker, Marshall McLuhan, Nash equilibrium, passive income, Paul Graham, place-making, pneumatic tube, remote work: asynchronous communication, remote working, Richard Feynman, rolodex, Salesforce, Saturday Night Live, scientific management, Silicon Valley, Silicon Valley startup, Skype, social graph, stealth mode startup, Steve Jobs, supply-chain management, technological determinism, the medium is the message, the scientific method, Tragedy of the Commons, web application, work culture , Y Combinator

Cal Newport, Deep Work: Rules for Focused Success in a Distracted World (New York: Grand Central Publishing, 2016). 7. Anne Lamott, “Time Lost and Found,” Sunset, April 5, 2010, www.sunset.com/travel/anne-lamott-how-to-find-time. 8. Pat Flynn, “SPI 115: 9000 Unread Emails to Inbox Zero: My Executive Assistant Shares How We Did It (and How You Can Too!),” June 28, 2014, in Smart Passive Income Podcast with Pat Flynn, 35:22, www.smartpassiveincome.com/podcasts/email-management/. 9. Laura Vanderkam, “Can You Really Spend Just 20 Hours a Week on Core Production?,” LauraVanderkam.com, October 15, 2015, https://lauravanderkam.com/2015/10/can-you-really-spend-just-20-hours-a-week-on-core-production/. 10.


pages: 339 words: 95,270

Trade Wars Are Class Wars: How Rising Inequality Distorts the Global Economy and Threatens International Peace by Matthew C. Klein

Alan Greenspan, Albert Einstein, Asian financial crisis, asset allocation, asset-backed security, Berlin Wall, Bernie Sanders, Branko Milanovic, Bretton Woods, British Empire, business climate, business cycle, capital controls, centre right, collective bargaining, currency manipulation / currency intervention, currency peg, David Ricardo: comparative advantage, deglobalization, deindustrialization, Deng Xiaoping, Donald Trump, Double Irish / Dutch Sandwich, Fall of the Berlin Wall, falling living standards, financial innovation, financial repression, fixed income, full employment, George Akerlof, global supply chain, global value chain, Great Leap Forward, high-speed rail, illegal immigration, income inequality, intangible asset, invention of the telegraph, joint-stock company, land reform, Long Term Capital Management, low interest rates, Malcom McLean invented shipping containers, manufacturing employment, Martin Wolf, mass immigration, Mikhail Gorbachev, Money creation, money market fund, mortgage debt, New Urbanism, Nixon triggered the end of the Bretton Woods system, offshore financial centre, oil shock, open economy, paradox of thrift, passive income, reserve currency, rising living standards, Robert Shiller, Ronald Reagan, savings glut, Scramble for Africa, sovereign wealth fund, stock buybacks, subprime mortgage crisis, The Nature of the Firm, The Wealth of Nations by Adam Smith, Tim Cook: Apple, trade liberalization, Wolfgang Streeck

Profits earned from selling goods made in factories located abroad would not be taxed by the U.S. government as long as those profits were reinvested in the foreign operation. American companies would have to pay taxes only on profits sent home via dividends, debt buybacks, or mergers and acquisitions. The resulting subpart F of the Internal Revenue Code penalized so-called passive income. Dividends and interest earned from investment portfolios would be taxed at U.S. rates by the federal government regardless of whether those profits were reinvested abroad or repatriated immediately to American investors. Crucially, income from royalties and licenses was considered passive. American companies would pay the full U.S. corporate tax rate on any income earned from their patents regardless of where they claimed those patents were located in their corporate structure.27 Everything changed in 1996 with Treasury Decision 8697.


Work Less, Live More: The Way to Semi-Retirement by Robert Clyatt

asset allocation, backtesting, buy and hold, currency risk, death from overwork, delayed gratification, diversification, diversified portfolio, do what you love, eat what you kill, employer provided health coverage, estate planning, Eugene Fama: efficient market hypothesis, financial independence, fixed income, future of work, independent contractor, index arbitrage, index fund, John Bogle, junk bonds, karōshi / gwarosa / guolaosi, lateral thinking, Mahatma Gandhi, McMansion, merger arbitrage, money market fund, mortgage tax deduction, passive income, rising living standards, risk/return, Silicon Valley, The 4% rule, The Theory of the Leisure Class by Thorstein Veblen, Thorstein Veblen, transaction costs, unpaid internship, upwardly mobile, Vanguard fund, work culture , working poor, zero-sum game

And finally, by simply operating at lower dollar levels, you qualify for the lowest tax brackets and rates. chapter 5 | Stop Worrying About Taxes | 243 Receive Less Salary or Earned Income Most semi-retirees, even those who continue to work part time, have left their high salary-earning days behind and rely instead on interest, dividends, and capital gains for much of their income. These types of passive income all come with a lower tax bite than does salary income. Those earning salary, wages, or other income not only have state and federal income taxes to pay, which can be at combined marginal rates over 40%, but also have growing Medicare and Social Security taxes taken directly out of their paychecks.


All About Asset Allocation, Second Edition by Richard Ferri

activist fund / activist shareholder / activist investor, Alan Greenspan, asset allocation, asset-backed security, barriers to entry, Bear Stearns, Bernie Madoff, Black Monday: stock market crash in 1987, book value, buy and hold, capital controls, commoditize, commodity trading advisor, correlation coefficient, currency risk, Daniel Kahneman / Amos Tversky, diversification, diversified portfolio, equity premium, equity risk premium, estate planning, financial independence, fixed income, full employment, high net worth, Home mortgage interest deduction, implied volatility, index fund, intangible asset, inverted yield curve, John Bogle, junk bonds, Long Term Capital Management, low interest rates, managed futures, Mason jar, money market fund, mortgage tax deduction, passive income, pattern recognition, random walk, Richard Thaler, risk free rate, risk tolerance, risk-adjusted returns, risk/return, Robert Shiller, selection bias, Sharpe ratio, stock buybacks, stocks for the long run, survivorship bias, too big to fail, transaction costs, Vanguard fund, yield curve

The couple’s 50-year commingled allocation age is quite different from their chronological age; however, it may be more appropriate for their situation. Another example: assume the case of two 55-year-old female investors. How do we differentiate the special needs of each person? The questions to ask cover a wide range of issues, such as income needs, retirement needs, pensions, current and forecasted living expenses, bequeathing goals, passive income sources, the degree of detachment (i.e., risk tolerance), and so on. These real-life variables will dramatically affect each woman’s asset allocation. The chronological age-based allocation of 55 percent in bonds may be a good starting point or baseline allocation model. There are a number of life variables that will ultimately determine the allocation age of the investor.


pages: 305 words: 98,072

How to Own the World: A Plain English Guide to Thinking Globally and Investing Wisely by Andrew Craig

Airbnb, Alan Greenspan, Albert Einstein, asset allocation, Berlin Wall, bitcoin, Black Swan, bonus culture, book value, BRICs, business cycle, collaborative consumption, diversification, endowment effect, eurozone crisis, failed state, Fall of the Berlin Wall, financial deregulation, financial innovation, Future Shock, index fund, information asymmetry, joint-stock company, Joseph Schumpeter, Long Term Capital Management, low cost airline, low interest rates, Market Wizards by Jack D. Schwager, mortgage debt, negative equity, Northern Rock, offshore financial centre, oil shale / tar sands, oil shock, passive income, pensions crisis, quantitative easing, Reminiscences of a Stock Operator, road to serfdom, Robert Shiller, Russell Brand, Silicon Valley, smart cities, stocks for the long run, the new new thing, The Wealth of Nations by Adam Smith, Yogi Berra, Zipcar

First, as we saw in the section on compound interest, with a long-term commitment to doing the best with your money you really can aspire to turn relatively small amounts of money into large amounts. All you need is time (I would say at least ten years), a modicum of knowledge and a bit of effort in terms of taking care of the necessary administration. Second, and to link to the first point, the example above is looking only at passive income – that is to say the “perfect world” scenario of you being able to live your life entirely funded by the money you make from your money. In reality, we will all likely spend several decades of our life working in some shape or form. This is important because your active income (the money you are paid for your work) can obviously make up a huge component of the costs of your dream lifestyle during the decades you work.


pages: 349 words: 98,309

Hustle and Gig: Struggling and Surviving in the Sharing Economy by Alexandrea J. Ravenelle

active transport: walking or cycling, Affordable Care Act / Obamacare, air traffic controllers' union, Airbnb, Amazon Mechanical Turk, barriers to entry, basic income, Broken windows theory, call centre, Capital in the Twenty-First Century by Thomas Piketty, cashless society, Clayton Christensen, clean water, collaborative consumption, collective bargaining, company town, creative destruction, crowdsourcing, digital divide, disruptive innovation, Downton Abbey, East Village, Erik Brynjolfsson, full employment, future of work, gentrification, gig economy, Howard Zinn, income inequality, independent contractor, informal economy, job automation, John Zimmer (Lyft cofounder), low skilled workers, Lyft, minimum wage unemployment, Mitch Kapor, Network effects, new economy, New Urbanism, obamacare, Panopticon Jeremy Bentham, passive income, peer-to-peer, peer-to-peer model, performance metric, precariat, rent control, rent stabilization, ride hailing / ride sharing, Ronald Reagan, scientific management, sharing economy, side hustle, Silicon Valley, strikebreaker, TaskRabbit, TED Talk, telemarketer, the payments system, The Theory of the Leisure Class by Thorstein Veblen, Tim Cook: Apple, transaction costs, Travis Kalanick, Triangle Shirtwaist Factory, Uber and Lyft, Uber for X, uber lyft, ubercab, universal basic income, Upton Sinclair, urban planning, vertical integration, very high income, white flight, working poor, Zipcar

Joshua would probably never consider cleaning houses for a living or working as a hotel’s front desk clerk, but as a short-term side hustle it has its appeal. At the end of our interview, he noted that he was moving cross-country and hiring his fiancée’s undocumented immigrant mother to manage the key distribution and cleaning. As he put it, he and his business partner “want to do as little manual labor as possible, turn [Airbnb listings] into passive income.” RACE OR CLASS? Is this brushing off of the social contract an issue of socioeconomic or racial inequities? As noted previously, discrimination has been documented among sharing economy services such as Airbnb, Craigslist, and eBay.75 However, when it comes to the treatment of workers, it’s not certain to what extent the issue is race-based or class-based.


pages: 346 words: 97,330

Ghost Work: How to Stop Silicon Valley From Building a New Global Underclass by Mary L. Gray, Siddharth Suri

"World Economic Forum" Davos, Affordable Care Act / Obamacare, AlphaGo, Amazon Mechanical Turk, Apollo 13, augmented reality, autonomous vehicles, barriers to entry, basic income, benefit corporation, Big Tech, big-box store, bitcoin, blue-collar work, business process, business process outsourcing, call centre, Capital in the Twenty-First Century by Thomas Piketty, cloud computing, cognitive load, collaborative consumption, collective bargaining, computer vision, corporate social responsibility, cotton gin, crowdsourcing, data is the new oil, data science, deep learning, DeepMind, deindustrialization, deskilling, digital divide, do well by doing good, do what you love, don't be evil, Donald Trump, Elon Musk, employer provided health coverage, en.wikipedia.org, equal pay for equal work, Erik Brynjolfsson, fake news, financial independence, Frank Levy and Richard Murnane: The New Division of Labor, fulfillment center, future of work, gig economy, glass ceiling, global supply chain, hiring and firing, ImageNet competition, independent contractor, industrial robot, informal economy, information asymmetry, Jeff Bezos, job automation, knowledge economy, low skilled workers, low-wage service sector, machine translation, market friction, Mars Rover, natural language processing, new economy, operational security, passive income, pattern recognition, post-materialism, post-work, power law, race to the bottom, Rana Plaza, recommendation engine, ride hailing / ride sharing, Ronald Coase, scientific management, search costs, Second Machine Age, sentiment analysis, sharing economy, Shoshana Zuboff, side project, Silicon Valley, Silicon Valley startup, Skype, software as a service, speech recognition, spinning jenny, Stephen Hawking, TED Talk, The Future of Employment, The Nature of the Firm, Tragedy of the Commons, transaction costs, two-sided market, union organizing, universal basic income, Vilfredo Pareto, Wayback Machine, women in the workforce, work culture , Works Progress Administration, Y Combinator, Yochai Benkler

Workers on LeadGenius had even higher rates of referrals, suggesting that word-of-mouth employer recommendations cut across platforms.4 Workers share tips about tasks via phone, forums, chat, Facebook, and even in person, especially if they pay well. Likewise, names of requesters (aka employers) who are fair and reliable often circulate among on-demand workers. Sanjeev, 22, is a student in Kerala who makes money by working on MTurk and maintaining several blogs on love and friendship that generate passive income through Google AdWords.5 He first learned about MTurk from a friend in his computer applications course. He likes MTurk because he can do it part-time. He often keeps an eye out for late-night tasks, something he can do while he studies. When he sees a promising job pop up, he shares the news with his friend.


pages: 331 words: 95,582

Golden Gates: Fighting for Housing in America by Conor Dougherty

Airbnb, bank run, basic income, Bay Area Rapid Transit, Bernie Sanders, Big Tech, big-box store, business logic, California gold rush, carbon footprint, commoditize, death of newspapers, desegregation, do-ocracy, don't be evil, Donald Trump, edge city, Edward Glaeser, El Camino Real, emotional labour, fixed income, fixed-gear, gentrification, Golden Gate Park, Google bus, Haight Ashbury, Home mortgage interest deduction, housing crisis, illegal immigration, income inequality, Joan Didion, Marc Andreessen, Marc Benioff, mass immigration, new economy, New Urbanism, passive income, Paul Buchheit, Peter Thiel, rent control, rent-seeking, Richard Florida, Ronald Reagan, Salesforce, San Francisco homelessness, self-driving car, sharing economy, side hustle, side project, Silicon Valley, single-payer health, software is eating the world, South of Market, San Francisco, The Rise and Fall of American Growth, universal basic income, urban planning, urban renewal, vertical integration, white flight, winner-take-all economy, working poor, Y Combinator, Yom Kippur War, young professional

Trion’s website had a fill-in form where anyone professing to be worth at least $1 million could sign up and view investment opportunities, while crowdfunding sites like RealCrowd acted as middlemen, allowing doctors, lawyers, and other ordinary rich people to buy shares in about-to-be-flipped buildings for as little as $10,000. Real estate celebrities recruit fans through blogs and social media and invite them to invest in new projects, where they are promised a stream of passive income without ever having to see more than the returns, project timelines, and milestones that are spelled out in neat infographics. One of the investors Trion found through RealCrowd was an anesthesiologist who gave Sharkansky’s wife an epidural when she was in labor with their first son. RealCrowd operates like the high-end-landlord version of online shopping.


pages: 426 words: 105,423

The 4-Hour Workweek: Escape 9-5, Live Anywhere, and Join the New Rich by Timothy Ferriss

Abraham Maslow, Albert Einstein, Amazon Mechanical Turk, Apollo 13, call centre, clean water, digital nomad, Donald Trump, drop ship, en.wikipedia.org, Firefox, fixed income, follow your passion, Ford Model T, fulfillment center, game design, global village, Iridium satellite, knowledge worker, language acquisition, late fees, lateral thinking, Maui Hawaii, oil shock, paper trading, Paradox of Choice, Parkinson's law, passive income, peer-to-peer, pre–internet, Ralph Waldo Emerson, remote working, risk tolerance, Ronald Reagan, side project, Silicon Valley, Silicon Valley startup, Skype, Steve Jobs, Vilfredo Pareto, wage slave, William of Occam

-midnight in a campsite with no other distractions, (c) outsourcing everything that I would find difficult or time consuming (like the tricky programming stuff and the illustrations for my book). After about four weeks I had an automated informational website that had replaced ½ of my full-time income—requiring > four hours per week to maintain. The original plan was to arrive in Adelaide and get a J.O.B. But with my passive income, I decided to simply grow my new business and am currently very close to replacing 100% of my previous income. It feels f&*#ing brilliant. Now we plan to travel the world slowly until the kids are ready for primary school… Who says kids hold you back?! —FINN WORKING REMOTELY One month and one year ago, I read 4HWW on the recommendation of my sister’s boyfriend after I had been talking for months about changing my life drastically and moving to Argentina to learn Castellano.


pages: 371 words: 107,141

You've Been Played: How Corporations, Governments, and Schools Use Games to Control Us All by Adrian Hon

"hyperreality Baudrillard"~20 OR "Baudrillard hyperreality", 4chan, Adam Curtis, Adrian Hon, Airbnb, Amazon Mechanical Turk, Amazon Web Services, Astronomia nova, augmented reality, barriers to entry, Bellingcat, Big Tech, bitcoin, bread and circuses, British Empire, buy and hold, call centre, computer vision, conceptual framework, contact tracing, coronavirus, corporate governance, COVID-19, crowdsourcing, cryptocurrency, David Graeber, David Sedaris, deep learning, delayed gratification, democratizing finance, deplatforming, disinformation, disintermediation, Dogecoin, electronic logging device, Elon Musk, en.wikipedia.org, Ethereum, fake news, fiat currency, Filter Bubble, Frederick Winslow Taylor, fulfillment center, Galaxy Zoo, game design, gamification, George Floyd, gig economy, GitHub removed activity streaks, Google Glasses, Hacker News, Hans Moravec, Ian Bogost, independent contractor, index fund, informal economy, Jeff Bezos, job automation, jobs below the API, Johannes Kepler, Kevin Kelly, Kevin Roose, Kickstarter, Kiva Systems, knowledge worker, Lewis Mumford, lifelogging, linked data, lockdown, longitudinal study, loss aversion, LuLaRoe, Lyft, Marshall McLuhan, megaproject, meme stock, meta-analysis, Minecraft, moral panic, multilevel marketing, non-fungible token, Ocado, Oculus Rift, One Laptop per Child (OLPC), orbital mechanics / astrodynamics, Parler "social media", passive income, payment for order flow, prisoner's dilemma, QAnon, QR code, quantitative trading / quantitative finance, r/findbostonbombers, replication crisis, ride hailing / ride sharing, Robinhood: mobile stock trading app, Ronald Coase, Rubik’s Cube, Salesforce, Satoshi Nakamoto, scientific management, shareholder value, sharing economy, short selling, short squeeze, Silicon Valley, SimCity, Skinner box, spinning jenny, Stanford marshmallow experiment, Steve Jobs, Stewart Brand, TED Talk, The Nature of the Firm, the scientific method, TikTok, Tragedy of the Commons, transaction costs, Twitter Arab Spring, Tyler Cowen, Uber and Lyft, uber lyft, urban planning, warehouse robotics, Whole Earth Catalog, why are manhole covers round?, workplace surveillance

Even when you’re not at work at your job, you’re at work improving yourself. There’s no more time when you aren’t playing, no moments of respite in Erving Goffman’s “backstage,” where we can drop our facade and step out of character.78 This self-monitoring even affects the well-off and rich. Once, elites and the rich didn’t have to work, thanks to passive income and rents.79 Today, when social capital comes from what you do at work (or your work-like hobbies), everyone works essentially all the time. So while you might think the upper middle class and beyond are free to relax after five o’clock, they’re still under pressure to invest in themselves to improve their status.


pages: 429 words: 120,332

Treasure Islands: Uncovering the Damage of Offshore Banking and Tax Havens by Nicholas Shaxson

Asian financial crisis, asset-backed security, bank run, battle of ideas, Bear Stearns, Bernie Madoff, Big bang: deregulation of the City of London, Bretton Woods, British Empire, business climate, call centre, capital controls, collapse of Lehman Brothers, computerized trading, corporate governance, corporate social responsibility, creative destruction, Credit Default Swap, David Ricardo: comparative advantage, Double Irish / Dutch Sandwich, export processing zone, failed state, financial deregulation, financial engineering, financial innovation, Fractional reserve banking, full employment, Glass-Steagall Act, Global Witness, Golden arches theory, high net worth, income inequality, Kenneth Rogoff, laissez-faire capitalism, land reform, land value tax, light touch regulation, Londongrad, Long Term Capital Management, low interest rates, Martin Wolf, Money creation, money market fund, New Journalism, Northern Rock, offshore financial centre, oil shock, old-boy network, out of africa, passive income, plutocrats, Ponzi scheme, race to the bottom, regulatory arbitrage, reserve currency, Ronald Reagan, shareholder value, Suez crisis 1956, The Spirit Level, too big to fail, transfer pricing, vertical integration, Washington Consensus

The Kennedy administration had enacted Subpart F of the Code in 1962, which defended against tax havens by curbing deferral of U.S. corporate taxes in certain situations, deeming the income of foreign subsidiaries and affiliates of U.S. corporations to have been distributed to the U.S. parent and taxed in the U.S. even though this income is not actually distributed. 13.Some countries have limited defenses against deferral; so-called “Subpart F” legislation in the United States (disallowing deferral on passive income) is an example. Even this defense is patchy, however, and developing nations usually find it impossible to construct meaningful defenses using this strategy. 14.David Cay Johnston, Perfectly Legal: The Covert Campaign to Rig Our Tax System to Benefit the Super Rich—and Cheat Everybody Else (New York: Penguin, 2003). 15.Eric Helleiner, States and the Reemergence of Global Finance: From Bretton Woods to the 1990s (Ithaca, NY: Cornell University Press, 1996), pp. 135–6.


pages: 426 words: 115,150

Your Money or Your Life: 9 Steps to Transforming Your Relationship With Money and Achieving Financial Independence: Revised and Updated for the 21st Century by Vicki Robin, Joe Dominguez, Monique Tilford

asset allocation, book value, Buckminster Fuller, buy low sell high, classic study, credit crunch, disintermediation, diversification, diversified portfolio, fiat currency, financial independence, fixed income, fudge factor, full employment, Gordon Gekko, high net worth, index card, index fund, intentional community, job satisfaction, junk bonds, Menlo Park, money market fund, Parkinson's law, passive income, passive investing, profit motive, Ralph Waldo Emerson, retail therapy, Richard Bolles, risk tolerance, Ronald Reagan, Silicon Valley, software patent, strikebreaker, The Theory of the Leisure Class by Thorstein Veblen, Thorstein Veblen, Vanguard fund, zero-coupon bond

Yes, of course, this is in part profiting from consumer excess—having more stuff than house to put it in. Whatever the irony, Steve and his family collect enough per month that he’s been able to live AND save enough to buy a second facility. Heʹs chosen a life of community service, occupying roles of significant responsibility, but he is able to be bold in his service because he has that passive income that actively supports his life. Quentin N. and his wife Irene have a real-estate story with some real ups and downs. They bought a four-plex twenty years ago, living in one unit and renting the other three. Even when they moved to a nearby city, they kept the four-plex as an income property.


pages: 368 words: 145,841

Financial Independence by John J. Vento

Affordable Care Act / Obamacare, Albert Einstein, asset allocation, diversification, diversified portfolio, estate planning, financial independence, fixed income, high net worth, Home mortgage interest deduction, low interest rates, money market fund, mortgage debt, mortgage tax deduction, oil shock, Own Your Own Home, passive income, retail therapy, risk tolerance, the rule of 72, time value of money, transaction costs, young professional, zero day

Active income: Wages, salaries, bonuses, tips, commissions, as well as certain other forms of income including pension income and alimony. 2. Portfolio income: Interest, dividends and profits generated from most types of investment holdings, including savings accounts, stocks, bonds, mutual funds, options, and futures. 3. Passive income: Income derived from real estate, limited partnerships, and other tax shelters. Certain income may be tax exempt, including: • • • • • • Child-support payments Compensations from accident, health, and life insurance Gifts and inheritances Municipal bond interest Scholarships and fellowships Veterans benefits In addition, the amount of deductions and write-offs that taxpayers can take in certain categories are subject to a number of rules, regulations, and limitations.


pages: 504 words: 129,087

The Ones We've Been Waiting For: How a New Generation of Leaders Will Transform America by Charlotte Alter

"Hurricane Katrina" Superdome, "World Economic Forum" Davos, 4chan, affirmative action, Affordable Care Act / Obamacare, basic income, Berlin Wall, Bernie Sanders, Big Tech, Black Lives Matter, carbon footprint, carbon tax, clean water, collective bargaining, Columbine, corporate personhood, correlation does not imply causation, Credit Default Swap, crowdsourcing, data science, David Brooks, deepfake, deplatforming, disinformation, Donald Trump, double helix, East Village, ending welfare as we know it, fake news, Fall of the Berlin Wall, feminist movement, Ferguson, Missouri, financial deregulation, Francis Fukuyama: the end of history, gentrification, gig economy, glass ceiling, Glass-Steagall Act, Google Hangouts, green new deal, Greta Thunberg, housing crisis, illegal immigration, immigration reform, income inequality, Intergovernmental Panel on Climate Change (IPCC), job-hopping, Kevin Kelly, knowledge economy, Lyft, mandatory minimum, Marc Andreessen, Mark Zuckerberg, mass incarceration, McMansion, medical bankruptcy, microaggression, move fast and break things, Nate Silver, obamacare, Occupy movement, opioid epidemic / opioid crisis, passive income, pre–internet, race to the bottom, RAND corporation, Ronald Reagan, sexual politics, Sheryl Sandberg, side hustle, Silicon Valley, single-payer health, Snapchat, Social Justice Warrior, Steve Bannon, TaskRabbit, tech bro, too big to fail, Uber and Lyft, uber lyft, universal basic income, unpaid internship, We are the 99%, white picket fence, working poor, Works Progress Administration

(Months later, Katie would be forced to resign from Congress after her estranged husband allegedly released intimate pictures of her with a female campaign staffer, becoming the first millennial lawmaker to resign because of leaked photos.) Most of the new young members hadn’t been getting a paycheck during their campaigns, so by the time they arrived in DC they were living off savings or fumes. Most older congressional candidates had spouses, passive income, or investment accounts to support them throughout their long unpaid campaigns—many millennial candidates didn’t. A week after AOC got to Congress, she had less than $7,000 in her savings account. She wouldn’t start getting a paycheck until after she was sworn in, so she wasn’t sure how she was going to rent an apartment in Washington, DC.


The Simple Living Guide by Janet Luhrs

air freight, Albert Einstein, car-free, classic study, cognitive dissonance, Community Supported Agriculture, compound rate of return, do what you love, financial independence, follow your passion, Golden Gate Park, intentional community, job satisfaction, late fees, low interest rates, money market fund, music of the spheres, off-the-grid, passive income, Ralph Waldo Emerson, risk tolerance, telemarketer, the rule of 72, urban decay, urban renewal, Whole Earth Review

We ought to be able to call on each other when we need help. Just today I helped a neighbor repair his gutters. When you have time in your life, you can develop these kinds of relationships. The Schmidts’ frugality enabled them to retire from paid work at ages 40 and 41. They live on $25,000 a year, all the result of passive income earned from their investments and rental from the second house. The $25,000 includes regular, lengthy trips around the world, a passion they pursued throughout all the years they were building their nest egg. “Even though we had this goal of paying off our house,” Becky says, “we also wanted to broaden ourselves.