I’m 16 and I’ve started a business that earns $3,000 monthly. What should I do with it?”
Here was my Answer:
Passive income is the way to go. You can either create it (start a business) or buy it (dividend stocks, rental properties , bonds etc. )
Or you can do both.
I spend my time and energy creating businesses that don’t need me around. Then I take the money earned and invest it into more passive income.
Now you have your business and a passive income investment (2 streams of income!)
Passive income gives you freedom, especially freedom to travel. When you have more passive income than expenses, then you are free to live the life you choose! (I call this The Cash Flow Lifestyle)
I really knew this was real when I began to invest money I earned from rental properties I purchased in my early twenties and invested into dividend stocks (Reits and boring Energy companies mostly)
One month I had to replace an AC unit so the property management company just used my rental funds to pay for it, so I would not receive any income that month. However, that was also the first month that my dividend payouts were more than my monthly rents!
I realized then that it wasn’t just talk, passive income is real and if you focus solely on increasing it and adding new streams while keeping your monthly expenses low (rent a boat instead of buy, own a home you can afford or don’t buy one at all and travel instead) then you truly can have the freedom you eread about in books like Four Hour Work Week.
Lastly: congrats on your early success! Just stay humble.