GOOD READS

How to Stop Depending on Your Paycheck

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."

Slideshow - Why people lose money while investing

1. Not knowing the difference between trading and investing:

Investors buy some shares, hope it goes up, when it does not they sell off. Since they do not know whether they should be averaging ... more 

1. Not knowing the difference between trading and investing:

Investors buy some shares, hope it goes up, when it does not they sell off. Since they do not know whether they should be averaging (works only in a portfolio like the Index) or put a stop loss (a typical trading strategy). less 
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Yahoo Finance India
Thu 20 Jun, 2013 4:30 PM IST

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.

Slideshow - 10 money lessons from billionaires

10. "The ultimate definition of success is: you could lose everything that you have and truly be okay with it. Your happiness isn't based on external factors." --Tony Hsieh, net worth of $840 million... more 
10. "The ultimate definition of success is: you could lose everything that you have and truly be okay with it. Your happiness isn't based on external factors." --Tony Hsieh, net worth of $840 million So often, we push happiness out on the horizon of life. "Once I get this job, I'll be happy." Or, "If only I landed that promotion, then everything would be good." Of course, life doesn't work that way, and there is always another goal once we reach our previous idea of happiness. Money is important, but your life should never be built around it. Happiness comes before success, not after it. less 
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Inc
Tue 24 Jan, 2012 11:30 AM IST

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.

Slideshow - Six top-paying freelance jobs

Writing

There are freelance writers who manage to pull in more than six figures every year. It takes plenty of work, but the upside to writing is that you don't need any special equipment to get ... more 

Writing

There are freelance writers who manage to pull in more than six figures every year. It takes plenty of work, but the upside to writing is that you don't need any special equipment to get started. There are plenty of sites that list freelance writing gigs that can help you land your first client today. You don't even need to be Hemingway to land these projects, you just need to be able to write clearly and avoid grammar mistakes. less 
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Yahoo Finance India
Mon 17 Dec, 2012 11:30 AM IST

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.



More From US News & World Report

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