In the never-ending quest for passive income, many of us will drop our guards and fall prey for a “too-good-to-be-true” source of passive income. I’m not here to judge anyone because this can honestly happen to the brightest minds out there. We’ve all slipped up. When it comes to riches and making lots of money, it’s easy for our judgment to become clouded.
Today I wanted to point out a few income sources that we should avoid at all costs…
From sports to casinos to horses, gambling can make you some decent money, but it could also cost you your life savings. When you know your stuff it may seem like gambling on the outcome will be a sure thing. Unfortunately, it never is. Underdogs win and favorites lose. Anything can happen. You don’t want it to happen with your money.
Hot stocks/Day trading
It seems like my inbox is always filled with emails that are tipping me off with exclusive stock tips. First of all, why would anyone share that type of information? If you had a feeling that a stock was going to sky rocket, why would you tell anybody else? I would personally keep the knowledge to myself and laugh all the way to the bank.
Even if you disregard “hot stocks,” day trading in itself can be a recipe for financial disaster. The time and energy that you will spend on day trading is almost always not worth it. In almost all cases you would be better off getting a full-time job.
Do you ever listen or read a bunch of high praise for a “secret source” of income? Do you get hooked in with promises of making $576 a day? I must agree that these ads do gauge my interest. They also leave me thinking about how in the world this money will come in. My advice to all of you is that if an investment seems too good to be true, it usually is.
Flipping real estate
This is a controversial item on the list. Some will say it fits perfectly on this list, while others will disagree. There definitely is big money in flipping real estate properties. The reality of it is that you’ll almost surely lose money the first time you try it. Unless you’re really experienced or working with someone really experienced, you should stay away from flipping real estate as a first time source of passive income.