Hey, what’s up? John Sonmez here from simpleprogrammer.com. I’m going to answer a question today about
how can I make passive income as a programmer, as a software developer? What’s my favorite kind of income? Passive income. Passive income is my favorite kind of income. There’s no income better than passive income. Robert asked this question. He says, “Hi John, I’m a big fan of your Real
Estate videos and you encouraged me to start investing in rent units.” What does Robert say? He says, “Notwithstanding the fact that programmers
have a reasonably high salary compared to other profession, it is not nearly enough
to invest in rent units at least once a year as you did.” It is enough, but it depends on what your
goals are. “You did alright with the PluralSight courses,”
I did more than alright, “But what other ways are there to make a passive income?” Okay, so first of all let’s talk about like
if you just did the rental. Actually, before I even get into this I want
to give you a reference and link from a buddy of mine, I interviewed him on this channel,
MJ DiMarco has a great book called The Millionaire Fastlane. You need to read this book. You really need to read this book. I’m serious. You need to read this book. Everyone needs to read this book. He debunks some of the stuff about especially
compound, the power of compound interest. I hate compound interest. It’s ridiculous. It’s a great concept, but so many people bank
on it and it takes so long. It takes so long. So first of all, even if you just did the
real estate that is enough. Here’s a simple plan for generating passive
income and becoming wealthy, real simple plan. You’ve got to start young though. Let’s say you’re 20 and you buy a house every
year, one house, everyone can do this if you’re a software developer. You’ve got to scrunch and save and put down
the down payment, but you could do it. You might buy somewhere in the Midwest where
the houses are cheap. You buy one house every year and you rent
that house out. In 15 years, so let’s say you’re 20. In 15 years you’ll be 35. In 15 years you take the first house that
you bought that you’ve had for 15 years and you sell it. Now, true or false, it’s going to worth at
least double what you paid for it in 15 years? True. Do the math. Do the numbers. Look back at the housing prices from 15 years
ago. Almost always—it’s almost guaranteed that
it’s going to at least double. It might even triple. It probably would be a 1.5 is probably what
you’re expecting there. You’re going to get a pretty good amount of
money, enough to live off of for sure. Then the next year what do you—then what
do you do that year? You buy another house, you keep buying a house
because you take some of that money. Let’s say you bought a house originally right
now for $100,000. I’m just going to use round numbers to make
it easy. Then 15 years from now let’s say it’s worth
$200,000. So, you take the $100,000 that you’ve got
and you take 20 out of it or 10 out of it and you buy another house and then you take
the rest of it and you live off of that. You keep on rolling this forward and keep
on buying houses. That’s a guaranteed way. You’re going to have guaranteed income, it
might not be a huge amount of income, but you’re going to have guaranteed income for
the rest of your life just by doing that, just by buying one house a year. It will take 15 years. If you really want to make sure that you make
enough money, wait until you’re 40 and hold on to the house for 20 years. If you really, really want to make sure you
could do it 30 years, but it’s as guaranteed way that you’re going to become wealthy and
you’re going to retire. You’re going to be able to make—there’s
no way that this plan doesn’t—I’m not going to say there’s no, but there’s practically
no way that this fails. I want to say that just so you know that this
is a possibility, but it does take some time. that’s not necessarily the only way to make
passive income. That’s what this question was, what other
ways are there to make passive income? There’s about a million. When I was first trying to figure this out,
I read a book a while—a long time ago, that first got me this way of thinking called Rich
Dad Poor Dad. I know some of you don’t like Rich Dad Poor
Dad, I don’t care if you like it or not. It’s a fuckin’ good book because it changes
your mindset. If you ever read the book it’s really good. I don’t care what Robert Kiyosaki did to make
his money or what, or if he’s a hypocrite or not, he’s got good ideas in the book and
it will change your mindset. After I read that book I couldn’t figure out
how to make passive income. The only thing I could come up with besides
real estate was gumball machines. So, guess what I did? I bought a bunch of gumball machines. Actually, if you look at—in my book, in
Soft Skills: A Software Developer’s Life Manual, I’ll link to that here, go check that out. Go buy a copy of the book. I have a photo of me standing—filling gumball
machines. I’ll tell you, there’s nothing more fun in
life than going through Costco and filling a whole shopping cart full of fuckin’ candy. That is the most wonderful experience anyone
could have in life, because I had to fill up like 16 candy machines, gumball machines,
various candy machines with candy. It was a wonderful sublime experience. Anyway, that worked. I did generate some passive income. Now what I would recommend, I would have done
it differently today, but a coin operated business is one way to make passive income. Now, today, I could tell you a million ways
to do it. I’ll just toss out some ideas here. One of them that I’m working on right now
that I was just telling someone about and maybe I’m blowing the secret on this is make
a whole bunch of Amazon books. Make Kindle books. Make one a week or one a month—one a month,
one a month. Just pick a book, a topic, 10, 20,000 words
pump it out, write it out, sell it for 99 cents or $1.99 and you keep on doing that
and in 12 months you’ll have 12 books. If you did one a month I guarantee you’ll
generate some passive income, probably a couple of grand a month at the end of a year, maybe
even more. If you did 100 books, imagine where you’d
be. The same thing with audio books, another thing
here. A lot of my passive income from a while came
from the blog, from Simple Programmer. How do we generate passive income—”passive
income” at Simple Programmer? No income is truly passive, but as close as
possible, the blog, right? You have a blog. You write blog posts for it. It continues to generate traffic for years
if you’ve got good SEO content in there, especially if you’ve got Evergreen content
and you have ads on there or you sell a product on there that automatically generates revenue. It’s basically passive, if you think about
it, because yes, I’m doing these videos and stuff, but if I stop doing the videos and
I stopped doing blogposts I would continue to generate money for probably a few years
because I’ve created that engine. Another thing that you could do is you can
buy rights to things. There was an auction site that I was thinking
about, auctioning off my PluralSight courses and they sell rights to music. You can buy rights to music or film. A lot of artists they—I don’t know about
you, but a lot of famous people they tend to want to spend more money than they have,
so what do they do? They sell the rights to their music or to
their movies. You can get a share on that every time that
it plays on the radio. That’s an investment that you could make. There’s a ton of ways to do this. You’ve got to think outside the box. What kind of thing can you buy or can you
create that’s going to keep on generating you money. Books are a good one, resources, anything
that’s going to be evergreen. Anywhere you can use someone else’s marketplace
to sell something, apps in the app store is an example. Some SAAS businesses. I know a guy—I was just talking to this
guy, he built an app that is a typing test. It just tells you how many words per minute
you type and he’s making $5000 a month on ads on that site. He doesn’t work on it. He just made it once. It’s a crappy site, I think, I haven’t even
seen it, but he said it was a crappy site and he’s just making money from this. It’s passive income because you came up with
something and through the power of the internet, an SEO, people are finding it and they continue
to find it everyday and they continue to give him money based on the ads. There’s another guy I know that created a
calendar site, a scheduling site, and he doesn’t work on the site. He just built it one time, he made a couple
of changes to it and he’s making several thousand dollars a month. You’ve got to come up with something—you’ve
just got to start thinking and brain storming. There’s a ton of ways to do this that are
possible. Some of them are more passive than other ways,
but if you really sit down and you think about how can you create a renewing resource, something
like that, there’s a ton of ways to do that. Think about any business—every time you
see something, when you look around, I see a Pepsi machine here. Obviously, someone’s making some kind of passive
income off of that. Parking lots here, I see parking lots where
they charge you to park. Especially outside night clubs, they charge
a higher price in the evening. That’s passive income. Someone’s making passive income off of that. Rental properties, obviously, we talked about
already. How about the storage unit places where they
store your stuff. People pay for storage units. There’s a ton of ways. Everything that you see around you, someone’s
making some kind of passive income off of these things. A lot of the—if you don’t see someone actually
selling something and it’s something that you have to pay for, it’s passive income essentially. There’s a lot of models for it and you can
take those models and you can apply them to different places, to the internet and you’ve
just got to think about this. You’ve just got to start getting in the mindset
of thinking about how can you do these things. Most people think it’s impossible so they’ll
say don’t even try, but I definitely recommend—like I said, I’ve given you a lot of resources
here. The book Rich Dad Poor Dad, if you haven’t
read that already it will sort of change your mindset. Heck, the worst case you could start a gumball
business like me, or maybe a coin operated arcade, something like that, something where
you don’t have to be there and you still make money. All right, that’s all I got for you today. If you have a question for me you can always
email me at [email protected] Make sure you click the Subscribe button below. Click the bell, like I say in every video,
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