$1000 Passive Income Per Week
Let’s talk about how you can create $1000 a week in passive income. There are a number of ways to do this, but some are more desirable than others. You be the judge.
Option 1- Regular job
The first option is that you can go and get a job and earn $1000 a week. But if you do that, you’re committed to at least 40 years of your life, waking up every morning, going to work and that’s all you do. Say that something goes wrong, you want to have a sick day, or you’ve got a new child and for whatever reason you don’t want to go to work. Well, that’s too bad, you’ve still got to go and do your job, because that’s the only way you’re going to be creating that $1000 a week. That’s one option, but it doesn’t sound that great right? A lot of people agree, which is why they try to go and invest and create a better future for themselves. So let’s work out how to get that $1000 a week by investing.
Option 2- Investing
All up, $1000 a week makes $52,000 a year, so you’ve got to find a way to generate that money each year without going to work. Let’s break it down. You need $1000 a week in rental income and let’s say you’re investing in properties that are going to return $300 a week in rent. So you’d need 3.5 of those properties. It sounds pretty simple. There are properties in Australia that you can pick up for $100,000 to $150,000 that rent for $250 to $300 a week. If you had 3 of them, you’d almost be able to generate $1000 per week.
Option 3- A business idea
If you needed to create $50,000 a year, do you have a business idea that could get you that amount? Breaking it back down, how many products would you need to sell at $20 each or at $100 each to get there? Sell 500 products for $100 each in a year and you’re there. If you want to treat investing or your home life like a business, it’s all about breaking those numbers down and saying OK, what are my goals? Then you work backwards from the end result to break down how to achieve them.
The nitty gritty
If your first goal is to get $50,000 a year, or $1000 per week, then how many properties do you need? If it’s 3 properties, then how much of a deposit do you need for each? If the first property is a $100,000 purchase, then you only need a 20% deposit. This means you could access one of those properties with $20,000. And if that property has equity in it, you can pull the equity out and use it to buy your next property. So with just $20,000, you could get yourself at least 30% of the way to reaching your goal of a $1000 a week income stream.
What’s the plan?
There are many variables that can need to be factored in with the above scenario. Therefore, it’s important to have a strategy and a game plan. Ultimately, in working out what your game plan is, you need to look at what your end goal is, where you’re starting out today and how you can use that as leverage to get yourself to where you want to be. If you need help working out that game plan or strategy, feel free to reach out to us at Binvested.