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How Lazy Bastards Make Money Without Lifting a Finger

by Shawanda Greene

What happens if you quit your job?

It’s not a trick question.

If you skip work tomorrow, the day after that, and forever more, what’s the natural consequence of your decision?

You stop receiving a paycheck, right? That ain’t cool.

I get why companies refuse to pay ex-employees. But I’m sayin’ though, I don’t like it.

And that’s why I constantly scour the universe for strategies that move me closer to a monetary fortune so large that work becomes optional.

Red, Pink, and Orange ToesocksHere’s where passive income comes in. Unlike active (earned) income, which requires you to work in order to make money, passive (unearned) income pours in with little effort on your part.

You may sacrifice an ungodly amount of time and effort to rack up the money needed to acquire income generating assets. Beyond your initial cash outlay, however, you can relax while reaping the financial benefits of your investments.

As an added bonus, passive profits receive favorable tax treatment. Meaning, Uncle Sam puts his grubby mittens on smaller piles of your cash.

Consider this. Payroll taxes, e.g., Social Security and Medicare, historically, amount to 15.3% of an employee’s active income. You pay half, your employer pays half. The self-employed have the good pleasure of paying the entire 15.3%.

Passive income often enjoys reduced federal income tax rates AND bloodsucking payroll taxes don’t apply .

By now, you’re wondering, “How do I get in on some of that workless-money-making action?”

Patience, grasshopper. We’ll go over the specifics next time we meet, so stay tuned.

Click on the link to learn more about passive income streams.

Photo credit: Wikipedia

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{ 7 comments… read them below or add one }

Lance @ Money Life and More November 12, 2012 at 9:55 AM

Investment and business income is great if you structure it properly. If you know the tax code you can save a lot of money.
Lance @ Money Life and More recently posted..The Most Popular Budget and Why It SucksMy Profile

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Shawanda Greene November 12, 2012 at 9:53 PM

Avoiding self-employment taxes is enough reason to take a closer look at investment income. I don’t think it’s fair that the tax code is structured in such a way that you’re taxed at different rates depending on how you earn your income. However, that doesn’t stop me from trying to find ways tax discrimination can work on my behalf.
Shawanda Greene recently posted..Build a Budget-Friendly Gym in a Small SpaceMy Profile

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Kelly@FinancialFixers November 12, 2012 at 12:50 PM

Haha I love some of the title’s of your posts. Knowing about tax deductions and rates is really important when aiming to save money on everything from assets to loan payments. Interested to read more.
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Shawanda Greene November 12, 2012 at 9:58 PM

Legal tax avoidance is an interesting subject. It’s a lot more technical than the frugal living stuff, but absolutely worth knowing.
Shawanda Greene recently posted..Build a Budget-Friendly Gym in a Small SpaceMy Profile

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Maris King November 21, 2012 at 7:19 PM

You have some great points. Investments are great if you do this properly. There are some investment company that are fraud so we must be very strict to know it first.
Maris King recently posted..Bifold Doors Open Your Home to the Great OutdoorsMy Profile

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Sam December 27, 2012 at 11:03 AM

Best is to negotiate a severance and have your company pay years of deferred compensation to boot!
Sam recently posted..How To Reduce 401K Fees Through Portfolio AnalysisMy Profile

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Latisha February 15, 2014 at 9:37 AM

I can garuntee that the new Dell XPS will be with you for many many years if you take care of it and treat it right. Scan your Windows registry with dependable Registry Cleaner and COMPUTER SYSTEM Optimizer application.

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