Money Is My Friend – Passive Income Key I Learned From Phil Laut

Mey here on a lovely Thursday, blogging about Money Is My FriendPassive Income Key I Learned From Phil Laut...

…inspired by the book Money Is My Friend by Phil Laut…

…this book was recommended to me by one of my financially free friends Scott…

…I really enjoyed it and had a life changing moment occur when I read the part on passive income…

…when I read the book I was already making dividends with some of my stocks, and was reinvesting them using DRIP…

…and then I read in the book that if you want to be free you have to live off of your passive income…

…that means that you PAY YOURSELF YOUR PASSIVE INCOME every month…

…he had a story in the book where he had a savings account, and it made about $2.00 the first month…

…and he took the money and bought a movie ticket with it and enjoyed a movie…

…the point?

…we need to take our passive income and use it as we earn it, and it doesn’t matter how small it might be…

…this allows our passive income stream to grow and eventually replace our working income…

…if we never take out the dividends and live off of them we will never be free…

…it prevents us from falling into the trap of just saving and saving and working and working our whole lives and keeps us on track for our real goal, which is to make our own money with our own money…

…so right then I started paying myself 90% of my dividends (for all my income, including my passive income, I always pay myself 10% first and put it into my financial freedom account)…

…it’s amazing how just reading that one section in the book changed my life…

…suddenly making passive income streams became A LOT MORE FUN!!!

…and as I’m writing this I’m realizing that I have money in my savings account that is earning interest and I have to pay myself 90% of my interest…

…SCORE!

…so I encourage you to start this key passive income habit, which is start paying yourself your passive income every month…

…you’re going to get a lot more motivated to find ways to earn more and and you’re going to enjoy your money so much more!

What about you?

Do you make passive income in the form of interest, dividends, royalties, etc?

Do you pay yourself your passive income?

Tell us in the comments below!

13 Social Security Strategies to Maximize You and Your Family’s Income

This is Mey here on a breezy Thursday evening getting Wifi from my phone as the internet is down and writing a quick blog post on Social Security Strategies to Maximize Your Retirement Income

 

 

…in the training I was in I learned a few important tips that I want to share with you:

1) Go to http://www.SSA.gov and check that they have your earnings correct, as sometimes they make mistakes…how much time do you have to correct it?  You can go back 3 years only…

2) Registering at http://www.SSA.gov is so that you can obtain information on your Social Security, and does not activate your Social Security benefits.

3) You must work at least 10 years to qualify for Social Security, and the take the 35 highest income years to calculate your benefit…if you worked less than 35 years, then the years that you did not work count as ZERO towards your total.

4) You are entitled to full social security benefits at your retirement age (if you are younger then it’s probably 67, if you are older than it’s probably 66)…

5) If you are a spouse, you are entitled to 1/2 of your spouses social security benefits, and you can start collecting at 62 years old…waiting longer does not change your benefit at all…

6) If you are a spouse, and you also qualify for Social Security, you can start collecting the spousal benefit when you become 62, then wait until the maximum age of 70 years old, and then switch from the Spousal Benefit to your own benefit.  Why do this? Every year you wait to take your Social Security Benefit, the benefit increases…

7) If you are an ex-spouse and were a) Married for 10+ years, b) at least 62 years old and c) not currently married, then you can file to get half of your ex-spouse’s social security…if you get remarried though, the benefit stops…and it does not affect your Ex’s benefit at all and they don’t have to know unless you tell them…

8) If you have children under 18 who are your dependents, then they can claim half of your social security until they reach age 18…

9) If you decide to take your Social Security benefit at 62, then half way through the year you change your mind, then you can do a “do over”, and you can pay the government back and they will reset your benefit as if you hadn’t elected the benefits at all…

10) If you get to age 70, and you are just starting to take your Social Security benefit, however, you realize that you don’t have  much time left to live, you can do a “Do Over” and tell the government that you would like to change your election to start at 62 years old, and then they will pay you in a one time lump sum all of the payments that you would have gotten if you had been receiving them when you turned 62…

11) If you work before full retirement age AND take your Social Security Benefit, after the first $15,000 or so, you will have 50% of your benefit withheld and amortized and paid to you later after your full retirement age…

12) If you work after your full retirement age AND take your Social Security Benefit, after the first $15,000 or so you will have 30% of your benefit withheld and amortized and paid to you later…

13) Taxes – You have to take half of your Social Security Benefit and add up all other income that you make, INCLUDING non-taxable exempt bonds (like municipals), to determine your taxes!

 

As you can see, there is a lot going on in Social Security and in order to maximize your benefit, it’s recommended

3 Most Informative Videos on How To Make Money Renting Real Estate

…some people think that the safest investments are in real estate…

…however, becoming a landlord is a career and it has a lot of issues associated it…

…this post will educate you with the most-informative videos on how to be an effective landlord and make money through rental income…

  1. What Every Landlord Should Know About Property Management

    …this video covers the big key points on how to be successful at renting…

    …he hits key points that are extremely important, including:

    1) what you can use (credit score) and can’t use (sex, race…) to choose your renters
    2) how marketing with give you better tenants
    3) who the best tenants are (nurses) and the worst (self employed)
    4) be prepared in advance with an attorney that does lots of foreclosures
    5) be strict on rent being turned in on time
    6) need cash flow (if you are just breaking even, don’t invest)
    7) reserves (to pay for things when things go wrong)

  2. How to Calculate Numbers on a Rental Property

    …this is a great video that goes through the numbers that you need to look at to figure out if a rental property will be worth investing in…

    …it is key to know these numbers BEFORE you buy!

    …watch this video to understand how to calculate your key numbers…

  3. What to Avoid when buying a Rental Property

    …this video is extremely practical and informative…

    …it talks about everything you want to avoid when buying a rental property such as:

    1) Avoid houses, condos and townhomes
    2) Avoid flat roofs
    3) Don’t pay electricity or gas
    4) Avoid multiple stories
    5) Avoid being next to alleys or being on a main street

    …and more…

    …and the video talks about exactly WHY you should avoid these things…

…do you have experience renting?

…share your tips and advice in the comments below!