Creating Passive Income on a Tight Budget

Tent Adventure 22 Sep, 2018

Could you imagine how it would be if you could go on your dream vacation for the next 2 weeks, come back, and then realized that you've made several thousand dollars without doing any work?

For most of the people that I know, they don't see themselves actually doing that until they retire. What if you could do that in the coming weeks or even in the next 6-12 months?

Creating Passive Income: My Mother-In-Law's Story

A few years ago I met my mother-in-law for the first time. She immigrated from Asia back in the early 80's. Unfortunately, she didn't work much here in the U.S, so she's not able to pull from Social Security income like the majority of the people her age.

Things seemed kind of tough without having enough savings for retirement. Looking into her situation, she had an empty nest. She was living in a 3 bedroom house on her own with a converted garage.

If you've ever heard about how expensive it is to live here in the Bay Area, you'll realize how much money is being left on the table in this scenario.

Several years ago, there was a news story about a guy renting out a tent in a neighboring city called Mountain View (the city where Google HQ is located). How much was the rent? $900 a month!!! Pretty crazy right?

A lesson from this story is, there are small to medium tweaks that you can make in your life that can create large streams of passive income.  If you compare the rent from that tent I just mentioned to 2 empty rooms in a house + a converted garage, you'll easily see how passive income can be easily created. In fact, the rental income from that is enough to cover most people's Bay Area mortgage.

I understand that some people don't have the resources to go into the rental income business, but it's a great passive income option to consider...especially compared to working in a job. 

Tiny Homes, Huge Profits

Last summer I had the opportunity to check out California Tiny House - a place that only builds tiny homes. Compared to an RV, the homes that they showed me were so great that I wouldn't mind living in one them!  The premium materials that they use in them are just like the ones used in real homes so that you can live in them for the long-term.

I just wanted to bring this up because it's also a great way to expand your rental income if you have enough space on your lot and if your city allows them.

Sometimes these tiny houses are referred to as granny units, ADU's (accessory dwelling units), or JADU's (junior accessory dwelling units). So if you're interested in going this route, do a quick search in Google and look for your local ordinances related to tiny homes.

Here's a quick example:

Let's say that you finance the purchase of a tiny home for $50,000. You rent it out for $500-1000 per a month. So in roughly 5-10 years, the tiny home will be paid off and almost all of the rental income after that will be pure profit! Compare this cost to buying 1-2 cars. With the majority of vehicles out there, you'll be losing money right after you drive the car off the lot. With a tiny home, you can earn passive income for the long-term.

Featured article: 8 Ways to Invest in Real Estate on a Tight Budget

Build You Own Passive Income Business - Even on a Tight Budget!

Another great way to create passive income is through your own home-based business. 

Did you know that you can create a business for under $200 a year? 

When I first got started, I had to connect with my family and friends, strangers, do cold-calls, and 1-on-1 and group sales meetings.

Nowadays, you don't really have to do that with the internet. If you think about this email alone, we probably have never met before, but you've read this far. With the internet, you can communicate through email, audio, or even video...and there are so many ways to do this even if you're not a techie. If you're interested in any of this, check out my free checklist that will show you how to build a business on a budget.

Add new comment

The content of this field is kept private and will not be shown publicly.

Filtered HTML

  • Web page addresses and email addresses turn into links automatically.
  • Allowed HTML tags: <a href hreflang> <em> <strong> <cite> <blockquote cite> <code> <ul type> <ol start type> <li> <dl> <dt> <dd>
  • Lines and paragraphs break automatically.
CAPTCHA
This question is for testing whether or not you are a human visitor and to prevent automated spam submissions.