J.D. Moyer

sci-fi author, beatmaker

Tag: passive income

Principles for Building Passive Income

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On June 14

In Money/Personal Finance

Passive income is the dream, right? Arrange your life and finances so that money consistently flows into your bank account, regardless of your employment status or energy spent hustling for gigs. I don’t mind doing hourly work as long as the work is tolerable, the clients are nice, and the rate is fair, but passive income certainly reduces my stress levels.

I currently have nine sources of passive and semi-passive income:

  • book royalties
  • music sales royalties
  • music publishing royalties
  • blog affiliate income
  • Patreon
  • service contracts
  • equity dividends
  • interest
  • capital gains

Some of these sources contribute negligibly, less than $50 in a month, but in total my passive income averages about $3000 a month. Not enough to cover my current lifestyle (especially since 100% of my dividend and capital gains income are reinvested) but enough to provide a significant financial buffer. Even when I have a slow month in terms of consulting hours, the passive income almost guarantees that my net worth keeps growing.

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Creating a Personal Economic Plan

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On December 17

In Advice for Young People, Creative Work/Career, Money/Personal Finance

This post is a continuation of What’s Your Personal Economic Plan?

What Can You Do? What Suits Your Temperament?

Now there's a plan.

There are a few ways to make money.  There is passive income, which involves no effort beyond cashing checks.  This could be from investment income (interest and dividends), rents (if rents exceed maintenance expenses), passive ownership share in a profitable business, and royalties (from music, books, and performances).

There is the possibility of having a job, with salary and benefits.

There is freelance, or independent work, where you charge a client for services delivered (on a job, hourly, or daily basis).

There is the entrepreneurial route, starting, or gaining an ownership stake in, a profitable business.

Your spouse, significant other, or family might be willing to support you, but this can mean sacrificing a lot of economic autonomy.

There’s also crime, but in the end crime doesn’t pay.

Part of creating a strong personal economic plan is understanding your own temperament.  What are you suited for, and more importantly, what are you not suited for?  The big “traps” in my opinion are as follows:

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