Passive Income: Earn Money While You Eat, Sleep, and Travel. Step 1: Debt Relief

Passive Income is income you don’t get paid hourly for. Income you accrue while you aren’t working. It’s set it and forget it. It’s being on vacation and still making money. It’s drinking beer on the beach in Copacabana while building up your portfolio. It’s hard work at first. It’s possible for everyone.

Before you begin creating passive income, pull yourself out of debt. No you can’t quit your job yet, but work towards this goal. Consolidate credit cards. Transfer the balance from the card with the highest APR to the card with the lowest.

Begin paying off your credit card with the highest interest rate first. Pay more than your minimum payments. Keep this payment amount the same each month even as your debt begins diminishing. Having budgeted this amount of money into your monthly expenses, you will grow accustomed to not having it.

Here is a great link to a 7 step debt reduction site represented visually.

7 Steps To Debt Elimination

Make a list of all your monthly expenses. Debt. Car Payment. Rent. Mortgage. Student Loans. Groceries. Gas. Insurance. Amenities. Internet. T.V. Electricity and so on. Then make a list of all your monthly income from work, dividends, interest from savings, stuff you sell, etc.

Now you’re ready for step two, hold on, it’s going to get fun soon, I promise!