A little under a year a ago, I started following several personal finance blogs. After about two months, I started to realize that most of the sites and articles gave the SAME OBVIOUS advice as the main stream media.
However, one site did seem to rise to the top – 20smoney.com. The founder of the site, Kevin, takes a dynamic approach to investing and creating wealth. If you are reading this post and you have never visited 20s money, I strongly recommenced stopping by and subscribing to it.
I recently had an opportunity to talk with Kevin about a topic I am really passionate about – passive income. I am a really strong believer that in order to secure a sound financial future, you really need to have multiple streams of income working at the same time. This allows you to be more offensive on paying down debt, saving for a future investment or just having a better quality of life.
With that said, here is what Kevin had to say about passive income…
BOU – Kevin, can you give us a little bit of info on your background and what prompted you to start 20smoney?
KEVIN – I have a background in computer science from an educational and career standpoint. I’ve always had an interest in finance and the stock market. Moreover, I’m sort of a serial entrepreneur – always looking for new ways to make money. The result was an attempt to start a blog and make a little money from it on the internet. My programming background made it fairly easy, and it gave me an outlet for my economic views and investment outlook.
BOU – Can you talk a little bit about your thoughts on passive income and why it is important, especially in today’s economy?
KEVIN – Well, passive income is a great thing no matter what the economy looks like. Who wouldn’t want it? In today’s economy, you have two forces – the depressionary/deflationary forces that are pushing unemployment up and making it tougher to get by and the inflationary forces that are making things cost more. Amazingly we have both at the same time. Both contribute to the reality that your dollars will be fewer and at the same time, they won’t go as far. In a sense, you need to boost your income in order to “out run” this economic reality. Passive income, additional income streams, etc. will help you do this. Furthermore, most people are not doing any of this, and they are going to face a tough reality in the future and a harsh shift lower in the standard of living.
If you’re dealing with multiple economies (i.e. various geographic locations) you’ll want to make sure to manage your money as effectively as possible. It’s always worth consulting with a foreign tax accounting firm as you build your passive income streams.
BOU – How are you actively creating a passive income?
Kevin – Well, my major source of additional income is my blog 20smoney and a few other websites I manage. It’s not exactly passive income since I work hard at these, but you can indeed grow a website and make it more passive in nature. In fact, I recently released a few case studies on online income and one of the case studies details how I make approximately $300 a month on a website that requires zero upkeep – definitely passive income. Overall, I usually average about $2,000 per month in income from my websites.