If you're earning a steady paycheck by going to work everyday, Jack Bosch thinks you're a chump. The entrepreneur and real estate investor - and self-described "wealth mentor" - wants you to develop a new source of income, one he refers to as "forever cash," because it provides a constant source of money. Examples include renting out property, selling online and investing in dividend-paying stocks.
"[Forever cash] really means peace of mind, because the cash comes in again and again and again. Most people live their lives focused on the other kind of cash - one-time cash - but unless you make a ton of it, it will keep you in the hamster wheel forever," says Bosch, who wrote the book "Forever Cash: Break the Earn-Spend Cycle, Take Charge of Your Life, Build Everlasting Wealth."
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The problem with working a more traditional job that pays a salary is that you always have to be working in order to earn money, Bosch says. If you can find a source for cash that doesn't depend on your own constant labor, you free yourself up to enjoy life more, before retirement age.
The idea of earning money without working hard sounds too good to be true, and it might be, but Bosch insists it's possible, and he supports his case with his own life experience. He purchases cheap spots of land on the outskirts of town, and then sells them quickly for more money, a process known as "flipping." When he first got started, instead of spending those proceeds, he used them to pay off debt as well as to invest. (Warning: The practice known as "flipping" got some people deep into debt and financial trouble during the subprime mortgage crisis, when many properties dropped quickly in value.)
One mistake Bosch often sees people who take his real estate classes make is that once they start earning more money, they also start spending more. "They have nicer houses, nicer cars, and more luxury, but now they need to do more deals," he says.
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After earning some extra cash, Bosch says it's time to choose your "forever cash" strategy. While his was renting out properties, which allowed him to earn a constant stream of rental income, he says you should only choose that method if you enjoy working in real estate. Otherwise, he suggests starting an online business, which he has also dabbled in by publishing reports on a range of topics, including gardening, and selling them on Amazon.
"I hired somebody for a couple hundred dollars on a website like Elance to write a special report on a subject that I quickly researched online and found to be of interest, like gardening or cooking," Bosch explains. The writer created a 20-page special report, Bosch added cover art, and then he self-published on Amazon as a PDF. He now has about 20 books on Amazon, and he says each one can make around $200 a month. "Every month we get a check from Amazon for $700 or $800," he says.
A friend of his takes a similar approach on eBay. He finds a warehouse of products that he then selects and sells on the e-commerce website. "I know people who make $100 a day by doing an hour of work selling stuff on eBay. That's $3,000 a month," Bosch says. He recommends using the proceeds to pay off debt and then investing in a rental property that will generate monthly income for years to come.
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If you opt to follow Bosch's lead and become a landlord, you'll also want to take measures to protect your time and your property. "I don't take any phone calls - tenants don't have my number, they have the number of the manager. So I identify a good manager and manage the manager," he says. He also pays in cash for the properties as much as possible to avoid over-leveraging himself. "A mortgage cannot be more than 50 percent of the rent that I receive. That's a rule that helps me sleep well at night," he explains.
That, along with those constant streams of income that he's managed to generate.
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