[0:00] all right in this video i'm going to [0:01] show you five different passive income [0:03] ideas or strategies that i would use if [0:05] i was to start at zero money and try to [0:07] get to financial independence as [0:09] a software developer software engineer [0:11] programmer whatever you want to call it [0:13] doesn't really matter [0:14] and this is essentially the video that i [0:16] wish i would have had when i started out [0:19] and the aim of the video is to basically [0:20] teach you how to leverage [0:22] your programming skills to becoming rich [0:24] and when i say rich [0:26] i mean like actual wealth so enough [0:28] money so that you are set [0:30] for life and do not need to work again [0:32] so let's go [0:33] so the first thing that you need to [0:34] understand is how the rich actually get [0:37] rich [0:37] and i feel like i sound like a financial [0:40] like guru or a trickster or something [0:41] but [0:42] that's what you need to understand and [0:44] the concept that you need to understand [0:45] is actually fairly simple [0:47] but the hard thing is actually [0:48] internalizing this and actually using it [0:50] fully and this is the idea that the rich [0:54] get rich by [0:55] essentially using the money that they [0:57] earn to make them [0:59] the money that they spend so this means [1:01] that you should never [1:02] actually spend the money that you earn [1:05] you should instead [1:06] invest this money and then use the [1:07] profits from those investments to pay [1:09] for things [1:10] if you imagine what you make in a year [1:12] and then you imagine if you didn't have [1:13] to spend a [1:14] single dime of that money imagine how [1:17] much money you would have in 10 years [1:19] so like i said this is a pretty easy [1:21] concept to understand i think that most [1:23] of you guys will understand that [1:24] most people in general will be able to [1:26] grasp this as a concept [1:28] and the idea is basically just invest [1:30] the money that you make [1:31] and only spend the profits that your [1:34] investments make [1:35] which means that you never really spend [1:36] your own money you're only spending [1:38] the profits of what your money is making [1:41] and this is however a lot more difficult [1:43] to actually put into practice [1:45] it's not as difficult as most people [1:46] think but it is [1:48] a concept that i think that you really [1:50] need to internalize before you start [1:51] making a passive income [1:53] if you want to turn that passive income [1:55] into actual wealth [1:57] and the truth is that at the start maybe [1:59] you won't be able to invest everything [2:00] that you make [2:01] but i don't really recommend that you do [2:03] that either because [2:04] none of this of course is financial [2:06] advice or anything like that [2:08] but i do really recommend internalizing [2:10] the mindset that you [2:11] never ever want to be spending your own [2:14] money [2:15] you only want to spend the profits of [2:17] your investments [2:19] this means that if you want to buy new [2:20] shoes or a new phone you shouldn't just [2:22] pay for it mindlessly [2:24] first try to find an investment that can [2:26] make you the money that you need in [2:27] order to buy the thing that you want [2:29] so let's say that the phone costs a [2:31] hundred dollars what i would do then is [2:33] spend some time [2:34] trying to figure out how i can invest [2:35] some money to make [2:37] a hundred dollars for instance maybe i [2:39] read up on some stocks and i find [2:41] something that seems [2:42] likely to increase by 10 over the next [2:44] month [2:45] if i invest a thousand dollars into this [2:47] stock and i have done my research [2:49] properly [2:50] then this stock might actually make a [2:52] hundred dollars and i can then take that [2:54] money and buy the phone [2:56] while keeping my bank balance exactly [2:58] the same as it was before i invested the [3:00] money [3:01] so i know that i make this sound super [3:03] easy and it's not actually that easy [3:05] at the start you probably won't be [3:06] hitting home runs on every single [3:08] investment that you make [3:09] you may even lose all of your money that [3:11] you put into a certain investment [3:14] and that's why you don't ideally want to [3:16] be investing your own money that you've [3:18] worked hard for to make you ideally want [3:21] to be investing money that you didn't [3:24] work for [3:24] so this is where creating that passive [3:26] income comes into play [3:28] because most of us wouldn't really be [3:30] able to [3:31] handle or shouldn't take the risk of [3:33] putting all of our life savings into a [3:35] single [3:36] investments dogecoin so what you would [3:39] ideally want [3:40] is a situation where you get paid money [3:43] every month [3:44] for work that you did in the past and [3:46] this is a main idea that you should take [3:48] away from this video [3:50] you can build for free and get paid for [3:52] life [3:53] and now we get to something that's i [3:54] think is really interesting which is [3:55] that even if you have no money to invest [3:57] you can still be an investor [3:59] and you can think of yourself as an [4:01] angel investor but instead of your [4:02] currency being money so you invest money [4:05] instead of that being the case you [4:06] actually your currency's time you invest [4:08] time [4:09] now you want to be transitioning over to [4:12] investing money instead of time as soon [4:14] as you can [4:15] but most of us can't really start out as [4:17] an angel investor investing hundreds of [4:19] thousands of dollars [4:20] into super risky startups and hoping [4:23] that they [4:24] succeed because most of us don't [4:26] actually have that money just laying [4:27] around [4:28] so therefore my strategy at the start [4:30] would be to build up [4:31] passive income streams by doing some [4:33] work for free and in just a second i'll [4:35] explain how to actually do that [4:37] and then i would use the money that [4:38] those income streams are generating to [4:40] invest [4:41] into more assets that make more money [4:44] and this is a concept that a lot of [4:45] people are familiar with which is the [4:47] concept of [4:48] money making money basically you want to [4:50] get to a point where you're getting [4:51] money for money and not money for time [4:55] and that is what will allow you to [4:56] become financially free and that is also [4:58] the topic that i've been obsessed with [5:00] for [5:00] a long time now and the old adage time [5:03] is money it's actually [5:04] literally true because you spend your [5:07] time to make [5:08] money and money and time in that sense [5:10] is just interchangeable [5:12] and in the same sense money is basically [5:15] something it's just a testament to how [5:17] much time you've spent [5:18] in most cases so when you're spending [5:20] your money you're also by default [5:22] spending your time [5:23] since you put time into your job and in [5:25] return your boss gave you [5:27] some money this is not the investment [5:29] that you want to be making you want to [5:31] make the investment where you trade [5:33] money for money [5:34] which is what investing in assets allows [5:36] you to do if for instance you take ten [5:38] dollars and you invest them into a stock [5:40] of some kind that you've done some [5:42] research on and that you believe has the [5:43] potential to increase in value over the [5:45] next week or the next month or the next [5:47] year [5:48] and let's say that you did your proper [5:50] research and that that stock actually [5:52] doubles in value you now have twenty [5:54] dollars [5:55] and if you take out your original ten [5:58] dollars and leave the other ten [6:00] you've now basically invented new money [6:02] out of thin air [6:03] you used your money to make more money [6:06] and if we extrapolate processes like [6:08] this one [6:08] over like five years or ten years or [6:10] even a lifetime [6:12] then you have a very good chance of [6:14] becoming financially independent [6:15] and i would go as far as saying that [6:17] it's almost a guarantee [6:19] so now that you understand the mindset [6:21] that you need to have and how to [6:22] actually use the money that you make [6:24] once you start making that passive [6:25] income [6:26] it's time to figure out how to actually [6:28] make the passive income to begin with [6:30] and i have lots of different ideas and [6:32] lots of different strategies here and [6:34] i think that they're quite unique as [6:35] well because i've watched a lot of these [6:37] videos i haven't seen anyone else [6:39] recommend most of them [6:40] which means that they're probably quite [6:42] unique and especially the first one [6:44] which [6:45] i don't know why no one else is [6:46] recommending it because to me it seems [6:48] like the best strategy that i've come up [6:49] with [6:50] and the most obvious one in a sense [6:53] so i don't i'm not sure why no one else [6:55] is recommending it but that's also why i [6:57] think that this video will be super [6:58] valuable for you [7:00] but the first thing that i would do with [7:02] my money is take whatever money i do [7:04] have and i would invest it in some sort [7:06] of low risk investment like index funds [7:08] or precious metals [7:09] or anything else that i could find [7:11] that's low risk because of the fact that [7:14] having money in the bank basically means [7:15] that you'll lose money over time [7:17] due to inflation and inflation is about [7:20] two percent or 2.5 percent per year [7:22] which means that your money will [7:23] decrease by 2 to 2.5 percent [7:26] in value every year which is why if you [7:29] ask your grandparents [7:30] how much they paid for their home you'll [7:32] see that [7:33] they paid pretty much nothing for their [7:35] home and if they would have just put [7:37] that into a bank account today they [7:38] would have not been able to buy the same [7:40] home [7:41] so i would say that's why you need to [7:43] spend you put your money into some sort [7:45] of low risk investment to start off with [7:47] to basically combat [7:48] this inflation but do your research [7:51] before you do this [7:52] and once you've done that you're ready [7:53] to start creating passive income streams [7:56] so strategy number one is to understand [7:59] that you can [7:59] build for free and get paid for life [8:02] here's how you can offer to build stuff [8:04] for free so basically you offer to build [8:07] apps or websites or whatever you know [8:09] how to build [8:10] for free and then you are basically [8:13] almost for free because you'll be asking [8:14] them for some sort of revenue share in [8:17] return [8:17] and this means that this can be a super [8:20] low percentage especially at the start [8:22] but it means that basically you build [8:24] once and then you get paid for life [8:27] startups often need an app or a site or [8:29] something built [8:30] and a lot of times early startups don't [8:32] really have any money [8:33] which means that they cannot really [8:34] afford to pay programmers to build stuff [8:36] for them [8:37] and this is where you come in you build [8:39] for free and [8:40] in return you get a part of their [8:43] revenue share for life [8:44] and this sort of thing has the potential [8:46] to make you infinite money [8:48] and the best way to start would be to [8:50] just learn how to make or set up [8:52] e-commerce sites [8:53] and because e-commerce is crazy popular [8:55] today and will probably just get more [8:57] and more popular with things like drop [8:58] shipping [8:59] this means that if you build the sites [9:01] for the people that want to start an [9:02] e-commerce site then you have the [9:04] potential to make a lot of money in the [9:06] future [9:07] by doing nothing essentially doing a [9:10] little bit of work for free right now [9:11] and getting paid [9:12] for life for doing basically nothing and [9:15] this can be super simple you can use [9:17] wordpress and shopify to set it all up [9:20] within just a day's worth of work [9:22] but if you do this please don't [9:24] advertise that you're actually coding [9:25] the site out from scratch because you're [9:27] not [9:28] and it won't really matter anyway just [9:30] advertise what you're actually doing [9:32] because [9:32] most people won't really care they just [9:34] want a site up [9:35] and running and they want it done really [9:37] fast and with wordpress and shopify your [9:39] customers might be able to actually [9:40] handle the sites themselves once they're [9:42] up [9:43] which means that they may not need to [9:44] pay another developer to maintain the [9:46] site [9:47] which will mean more revenue which again [9:49] will mean more passive income for you [9:51] and this is just like investing money [9:53] because sometimes you'll make [9:54] investments that won't pan out and you [9:56] won't make any money on those [9:57] investments you might even lose money [9:59] in this case you won't really lose money [10:01] you'll just lose the time that you spent [10:03] to build it so you might [10:04] end up building something for free that [10:06] never really ends up generating any sort [10:07] of revenue for you [10:09] which is the risk that you'll have to [10:11] take in order to be able to make [10:12] something like this work [10:14] and hopefully if you do this 10 times [10:17] a lot of those things will actually turn [10:19] out to generate some sort of passive [10:21] income for you [10:22] and over time you'll learn what to look [10:23] out for which means that over time [10:25] you'll probably hit [10:26] more and more home runs and this is [10:28] insanely valuable because you're [10:30] basically learning how to look out for [10:32] good investments [10:33] which will then serve you later on when [10:35] you start investing the money that you [10:37] make from these passive income streams [10:39] into more risky stocks and as an aside i [10:41] would also suggest learning a little bit [10:43] about the fundamentals of probability [10:45] because i believe that this is the most [10:47] valuable skill that you can have when it [10:48] comes to selecting investments [10:50] and this will really help you when it [10:51] comes to selecting the projects that [10:53] you're working on [10:53] for free that will have the highest [10:55] probability of then generating passive [10:57] income for you in the future [10:59] and so what i would look into [11:00] specifically is statistics [11:02] as it relates to finance usually because [11:05] probability usually goes under the name [11:07] of statistics [11:08] and so that's what i would look into i'm [11:10] currently going through a course on [11:11] brilliant.org [11:13] called statistics and finance that's [11:14] perfect for this [11:16] and brilliant actually also agreed very [11:18] kindly to sponsor this video [11:20] if you haven't heard about brilliant [11:22] then brilliant is a website and app [11:23] designed for learning about [11:25] math and science other than the class on [11:27] statistics [11:28] and finance they also have classes for [11:29] learning about computer science [11:31] which is perfect if you need to hone a [11:33] skill to be able to implement any of the [11:35] strategies that i'm going through in [11:36] this video [11:37] and the reason that you need to learn [11:39] about probability before going into [11:41] investing [11:42] is because most people me included are [11:44] bad at understanding how probability [11:46] actually works [11:48] and it's actually pretty simple so the [11:49] math is not super advanced but the [11:51] concepts are the ones that take more [11:53] time to actually grasp [11:55] and you'll want to understand this [11:56] because with good understanding of [11:58] probability you'll be able to make more [11:59] money in the stock market [12:01] or with any sort of investing because [12:03] you'll be able to figure out how likely [12:05] a deal is to be profitable for you [12:07] so therefore i highly recommend checking [12:09] out this course on brilliant.org [12:11] cal holden it's one of the best [12:13] investments that you can make in [12:15] increasing your future earning power [12:18] and the way that i would get started [12:19] with this strategy of generating passive [12:21] income would be to [12:22] either make a post on facebook or [12:24] message my friends and family neighbors [12:27] whoever [12:28] and ask them if they're starting [12:29] something and if they need my help [12:31] or if they know someone is starting [12:32] something then who would need my help [12:34] there are even other ways that you could [12:36] advertise your skills for free and [12:37] simultaneously have the potential to [12:39] make you some more money [12:40] for instance by creating a youtube [12:42] channel where you talk about something [12:44] related to what you do [12:45] or show your own previous projects in [12:47] some creative way [12:49] this has the added benefit or the side [12:51] benefit that if your channel takes off [12:53] then the channel could be a source of [12:55] income [12:56] although it wouldn't be very passive so [12:58] that is the number one strategy that i [13:00] would use to be able to create some sort [13:01] of passive income for myself [13:03] and the second strategy that i would use [13:05] would be to [13:06] create my own templates it's actually a [13:09] really good way of creating some sort of [13:10] passive income a template is a piece of [13:12] pre-written code that does a specific [13:14] task [13:15] and this is very common in javascript [13:17] which is the language most used on the [13:18] web [13:19] it's often said that javascript runs the [13:21] web so what some developers do [13:23] is create templates for certain features [13:25] and then sell these templates for [13:27] instance you can create your own [13:28] implementation of a slider that can be [13:29] used on a website to showcase images or [13:32] text or whatever [13:33] and the reason that i'm bringing that up [13:34] is because that's one of the successful [13:36] examples that i found as i was [13:37] researching this video [13:39] and you can basically just create [13:40] whatever else that you can come up with [13:42] and there's basically a slew of things [13:44] out there to create [13:45] since pretty much every website runs [13:47] javascript and pretty much every [13:48] business has a website these days it [13:50] means that a lot of people are building [13:51] websites [13:52] and a lot of people would rather pay for [13:54] a template than build it themselves [13:56] which actually makes economic sense [13:58] especially for companies [13:59] since their programmer might actually [14:01] cost a hundred dollars per hour [14:03] and the template might cost two dollars [14:05] and would take their programmer [14:07] one hour to build it means that they [14:09] basically get a hundred dollars of value [14:11] from paying two dollars [14:12] and you then make two dollars every time [14:14] someone buys your template that you only [14:16] spent an hour creating 10 years ago [14:18] if you build a lot of these then [14:20] basically over time you can generate a [14:22] fair amount of passive income [14:24] and for some of those templates you can [14:25] also charge a lot more than just two [14:27] dollars [14:28] and this is something that is not [14:29] limited to javascript this is something [14:31] that you can do for [14:32] any sort of programming language for any [14:34] sort of thing that you can come up with [14:35] some sort of template that someone else [14:37] could use [14:38] to basically kick start their whatever [14:41] they're working on [14:42] the third strategy that i would use is [14:43] pretty similar to the previous one which [14:45] is to build [14:46] plugins and so since it's pretty similar [14:48] i won't spend too much time on it [14:50] but this is something you can do with [14:52] wordpress and it's actually a pretty big [14:53] market for that as well [14:55] and a lot of people pay for different [14:57] nice looking templates [14:58] so that's a really good way to generate [15:00] another passive income stream and i want [15:02] to stress something here which is that [15:04] you always want to look for ways to [15:06] leverage the time that you're putting [15:08] into something so everything that you do [15:10] you want to find a way to [15:11] leverage that thing that you're doing [15:14] and plugins and templates are actually a [15:16] really great way to do this [15:17] if you're building your own personal [15:19] website then why not use that to your [15:20] advantage by creating some templates for [15:22] the feature that you need to build and [15:24] maybe a wordpress theme of the [15:26] layout once you're done and that way [15:28] you're leveraging what you were already [15:29] going to do which is building your site [15:32] to make you more money strategy number [15:34] four is to teach your skills [15:36] and this is where i would basically just [15:37] take any skill that i have and i would [15:39] try to figure [15:40] out a way to create a course around that [15:41] skill and then i would film that as a [15:43] course [15:44] and then i would sell it on facebook ads [15:47] basically create facebook ads google ads [15:49] and i would keep tweaking those ads [15:51] until i get to [15:53] an equilibrium or not an equilibrium but [15:56] a surplus where i'm making just a little [15:58] bit more than i'm spending on the ads [16:00] and that way you basically created a [16:02] course or the course has basically [16:04] become a self-sustaining machine [16:06] of passive income generation and then [16:09] the more courses that you create [16:10] the more this passive income stream [16:12] grows another way to approach this would [16:14] be to also create a youtube channel [16:16] where you talk about tips and tricks [16:18] related to the topics of those courses [16:20] and then link those courses or promote [16:22] them somewhere in those videos [16:25] if you do a good job you might actually [16:26] build a following and then your courses [16:28] will pretty much be selling themselves [16:30] now the last strategy that i have is the [16:32] most exploited one and which is why i [16:34] saved it to last and [16:36] i also cannot really skip it because [16:38] it's also the one that has [16:40] i think the most potential to just make [16:42] you rich literally overnight [16:44] and this is to build and publish apps [16:47] instagram [16:48] facebook tick tock snapchat angry birds [16:50] the list just goes on and there are so [16:52] many apps that have been built and [16:54] turned into [16:55] hundred million dollar companies if not [16:57] billion dollar companies [16:59] that it definitely is a valid route to [17:01] attempt especially when looking at [17:03] something like flappy bird [17:04] for instance the roi for the person who [17:06] built flappy bird must be insane because [17:09] it's dead simple to create yet it can be [17:12] turned into like a million dollar [17:13] business [17:14] and that's also why this market is [17:17] completely [17:18] saturated everyone basically wants to [17:20] build the next flappy bird [17:22] and so the reality is that what you [17:24] actually want to be doing or where the [17:26] actual opportunity is [17:28] is to find something that people are [17:29] already doing but in the real world [17:32] and then basically finding a way to make [17:33] an app that makes that a lot easier [17:36] so the more often people do this thing [17:37] in the real world and the more of a [17:39] hassle that process actually is [17:41] the greater the potential for your app [17:43] for instance parking today it used to be [17:45] that you had to park and then get out of [17:47] your car [17:48] walk over to a parking meter find coins [17:50] in your wallet estimate how long you [17:52] were actually going to stay there [17:53] and then get the ticket walk back to [17:55] your car put the ticket in the window [17:57] and that's what the process used to look [17:59] like here in sweden at least [18:01] but now you just download an app put in [18:03] your registration number and credit card [18:05] info and hit start [18:06] it will remind you when it's about to [18:08] expire and you can easily refill [18:10] and that's actually what the most common [18:12] million dollar app ideas look like [18:14] and with an app like that you can again [18:16] just offer revenue share to the parking [18:18] lot owner and [18:18] anytime someone pays for parking you [18:20] just make a small percentage [18:22] on that payment and this is the main [18:24] type of opportunity that i would be and [18:26] that i also [18:27] am on the lookout for basically find [18:29] something that people pay for that's [18:31] recurring or that's very frequent [18:33] that could then be simplified with an [18:35] app the other option when it comes to [18:37] app development is to build game apps [18:39] and then put ads in them [18:40] if your game gets downloaded a lot and [18:42] used a lot then you make some money [18:44] and the money that you make from this is [18:46] in general not that much [18:48] unless it goes viral so this is an okay [18:51] strategy and i really wouldn't shy away [18:53] from it but i would again try to [18:54] consider how can i leverage my time when [18:56] doing this [18:57] so for instance building and publishing [18:59] apps is actually really good to add to [19:01] your portfolio [19:02] and that can really help you accomplish [19:04] strategy number one which is the one [19:05] that i think most people should be [19:07] focusing on [19:08] so in order to achieve strategy number [19:10] one which is to [19:11] basically build apps for free and get a [19:13] revenue share from those apps [19:15] basically the people that you build [19:17] those apps for they probably need to see [19:18] that you actually know how to do what [19:21] they want [19:21] so in that case a couple of published [19:23] apps can really help so you might as [19:24] well create some apps with ads in them [19:26] that you would already need to do [19:28] and then has the side benefit of [19:30] potentially generating more passive [19:31] income for you [19:32] plus you'll learn skills that can help [19:34] you understand which apps do well and [19:36] which [19:36] don't and why so that you then be able [19:39] to actually help the people that you [19:41] build apps for [19:42] to create more successful apps which [19:44] means more money for you [19:46] again always thinking about how you can [19:48] get as many things [19:49] out of the things that you're doing as [19:51] possible so basically [19:53] you want to try to figure out a way to [19:55] increase the interest [19:57] on your time all right those are my best [19:59] tips for creating passive income as a [20:00] programmer and once one of these [20:02] strategies has started working for you [20:04] make sure to put your money to work and [20:06] this is where you can start to spend a [20:08] lot more time [20:09] researching stocks and investment [20:10] opportunities to find things that you [20:12] can invest in that have a little bit [20:14] higher risk but also higher potential [20:16] reward [20:17] it's money that you make for doing [20:18] nothing so you really can't afford to [20:20] risk it [20:21] but again if you do your research [20:23] properly and learn from your mistakes [20:25] these investments should become less and [20:27] less risky [20:28] and since your starting passive income [20:30] may only be a few dollars it means that [20:32] you'll have time to learn [20:34] and to understand how to actually invest [20:36] money in the proper way so that once you [20:38] start making a substantial amount of [20:39] money from that passive income [20:41] you will have learned and you'll know [20:43] how to invest that money [20:44] so yeah i hope you enjoyed this video [20:46] and i really tried to put together a [20:48] list of [20:49] strategies and ideas that i haven't [20:52] heard and haven't seen people talk about [20:54] as much [20:54] and that i think are actually super [20:56] valuable especially like i said the [20:58] first strategy i think that's something [20:59] that's [21:00] immensely valuable and i think that i'm [21:02] not sure again why most people don't [21:04] talk about it [21:05] so uh again i wanted to try to put [21:07] something together that was [21:09] quite unique so that i wasn't just [21:11] repeating what other people are saying [21:13] about this stuff [21:14] so yeah let me know in the comments how [21:16] i did or if there's something that you [21:18] think that i missed or [21:19] something that we can add to this i [21:21] think that would be super helpful for a [21:23] lot of people [21:24] and yeah that's it for this one i hope [21:26] you enjoyed it [21:27] and i hope that you start making some [21:29] passive income from these ideas and if [21:30] you do please let me know in the [21:32] comments [21:32] or in an email or whatever you however [21:36] you can find me [21:37] all right that's it for this one i hope [21:39] you enjoyed it and i hope i'll see you [21:40] in the next one