Should I Start a Business or Create Passive Income?

Great question. There are pros and cons to both.

A business would help you grow your income faster than most passive income options. But it also requires a lot more work and skill.

How much skill do you already have in launching & scaling a business on a scale of 1-10?

If your estimate is in the lower half and you need the business income to pay some or all of your expenses soon, I would personally prefer the passive income option.

This is not an either or question per se. Saying no to starting a business can just be "not now" or "not first".

Why It's Easier to Generate Income From Passive Assets Than Starting a Business

Don't you need a lot of money available for investment to create meaningful amounts of passive income?

Not really. But here is where the mindset shifts come in. I can think of 5+ different ways to create passive income with $0 to invest.

But I did not know any of them 15 years ago.

Let's review a few (not financial advice):

1. Get a 0% balance transfer credit card

You can pay most of your bills with it for the next 2-3 months. The amount you "save" can be transferred to an investment account.

Use the funds to invest in stocks with high dividends (5-10% ROI) or sell stock options with a smart strategy (45-90% ROI).

2. Take Out a Personal Loan With a Reasonable Interest Rate

When I got into a financial crunch with living abroad and owning two rental real estate properties in my home country, I was able to cover it with a personal loan at a flexible rate of approximately 7% at the time.

You can also use such a loan for investments in a way similar to how I described in #1 or as a way to help with a down payment for #3.

Be careful though: banks usually require the down payment to come from savings or investments. So you might need to plan ahead for this strategy or use a gift form your spouse or relative who's not on the mortgage.

3. Buy a Real Estate Asset With 95-100% Financing and Rent it Out

Loans with such a low down payment are usually available for first time home buyers and/or people with a good credit history. They commonly require owner occupancy.

You can live in the property for a while and rent out all other rooms until you're ready to move (some people do the same with the next property).

There are many more options like this, which are not immediately obvious, nor known by most people.

Real estate sales contracts and business acquisitions with $0 down are other examples. Put a search for this in YouTube or Google if you're curious.

It's always good to invest in our financial education and follow our curiosity (while being street smart).

What's Your Decision?

Will you move forward with launching / scaling a business or creating more passive income (first)?

If you'd like to learn more about the 45-90% ROI options strategy I mentioned above, please visit:

https://grow.saltmoney.org/guide

to access our FREE guide.

This is the main strategy I use today to grow my passive income. I would highly recommend it to anyone slightly interested in or open to stock market investments.

You don't have to put any money on the line. Just learn what it is, maybe implement it in paper trade mode for a while and then decide if it's a good fit for you.