Investing In The Marketplace: Just A Random Thought

Wouldn't it be great if you had a passive income you can count on? Yep. It certainly is. When there's an emergency and you need money to buy an extra cone of ice cream Sunday for your hungry girlfriend, you know where to turn to. That's your passive income. Not just one passive source of income but two, or even three. The question is HOW and WHERE do you start? I have a proposition in mind.

Just A Little Bit Of Intro Here

It all first came down on my noggin' when I was busily browsing over my head when suddenly a thought came into my view. You know what investments mean don't you? It's investments on how your money will move and work for you that will literally make you sit back and enjoy watching it grow like a banana stump growing at the back of your yard, just like mine.

I'm not talking about investments in trust funds, stocks, or real estates. Although these are very lucrative sources of passive income I won't tackle them in this post. They're broad and pretty much confusing in some way.

What I'm talking about is investment in other people's business. What makes it different from investing in the stocks is that you invest your money personally with someone else's business.

Just an example I made up so you'd know what I'm talking about.

Suppose I have a friend who is self-employed in the buy-sell business industry and I would also want to get into the business, What do I do? Invest in his business.

But how then would the transaction be? It's not loaning money for interests, it's about shares. Like the stocks. You invest money to buy a part of a company. In return you get paid everytime that company is generates income. That's how your plan will be. I'll invest in the businesses of others. In return, when they are earning, I'll just drop by them and ask for my share of the income. It could be daily or weekly depending on our agreement.

The  Business Plan

As to the cost how much you and I will invest, well it depends - depends on how much you are willing to invest and how much willing is your business partner will take.

When It comes to breaking the income in equal shares you must know how to break even the pie so that your side will be happy and the other's side will  also be happy. It's a win-win situation.

Since your investment is a part of the business then you are aloted to part of all the income generated of that business as well. Depending on how much in percentage the value of your money is invested to the business, so will be your percentage of the shared income of that business.

How It Works

If your investments were about 10,000 Php and the whole business' capital was 100,000 Php, then you are entitled 10% of the whole income generated by the business.

But thinking that it would be unprofitable for your friend (knowing that he'd give you all the 10% share of the income), wouldn't that be a little bit insensitive? I mean, he's the one who made the business work and your just standing there waiting for the money to arrive. Wouldn't that upset him? Sure it would.

That's why instead of taking the whole 10% share, why not give him at least 30% of your shares just for compensation of his service and his business.

In return, he'd be more happy that he got a profit from the business deal without him spending a dime for a bigger capital in his business. That's for sure.

You keep the 7% share and everybody's happy. Only 7%? Isn't that a bit small?

The answer is NO. the 3% that you gave as a service fee is just a small sacrifice for a long term passive income.

If the capital was 100,000 Php and the daily income would be 130,000 Php then you would have 2,100 Php on a daily basis. That would mean, in just 5 days you would have your investments returned in full and you still have your passive income generating money for you daily.

That's good news isnt' it?

Tell me. What else do you have in mind?

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