Building Passive Profits

At Passive Profits we believe that you should build Passive Profits by generating a Passive Residual Income (PRI) that exceeds your Ongoing Expenses.  You need to use your active income to invest in income producing assets of which you in turn withdraw some income to pay your ongoing expenses and the remainder (at least 50%) is used to re-invest or compound your investment or income producing asset.  It would be difficult at the onset, but identify small ongoing expenses or debt to start with and use a portion of your active income to invest in an income producing asset of which 50% would cover some of your ongoing expenses to start with, then build on this.

We believe that one should only invest what you can safely afford to lose and set this amount to start your investment portfolio.  You should then diversify your investments over at least 4 of the programs we recommend, therefore 25% to each.  You can then also set aside a portion monthly to invest in creating a Passive Residual Income.

We recommend that you distribute your available income as follows:

• At least 20% in Passive Residual Income or income generating assets - this should go into a separate account as well as all proceeds so that this can be re-invested.  The idea here is to grow this to a sizable investment and then to pay off your debt, starting with the debt that cost you the most.  Then you build up your income producing asset to cover some of your ongoing expenses out of 50% of the proceeds. Let's assume you have ongoing expenses of $1 000, then you should compound your investment to say $10 000 - if you earn 20% out of your income producing asset or investment per month, this would equal $2 000 of which $1 000 is re-invested to compound your investment.  Once your income exceeds your ongoing expenses and you have no debt, you can increase your lifestyle with what you can cover out of the 50% you are drawing, however it would be advisable to re-invest this and grow your investment or invest into another secure commodity such as gold.   
• Save what you can afford into a secure retirement plan
• Set a fixed amount for personal and self development 
• No other saving until you have no debt and you can pay your ongoing expenses out of your Passive Residual income. No new debt!

You can see the income producing assets or investment programs we recommend at: http://www.PassiveProfits.co.za/menu

I trust this assist and that you can use this as a guideline to get to a workable model for you personally.

Greetings,

Bruce St. Clair-Whicker