By Johannes Pan
So I want to take up graduate studies after five years. But I just graduated from college and have barely any money to study. What can I do to achieve this life goal? What would you do in this situation?
First, I could analyze my situation and get some facts straight. For one, I know that I do not have to pay for the tuition of all the semesters at once. I only have to pay one semester at a time or even get a student loan and pay in installments. Sounds easier.
Second, if I only have to pay in smaller amounts over time, I could work on earning passive income. Passive income is the money one gets without being actively involved in work. This way, I get to earn money while I study.
But how does this happen? For example, I am currently earning active income because I myself am doing the work. The pro is that if I save a sizeable portion of my earnings, I get to pay off the first semester or two. The con is that I cannot take this 9 AM-to-6 PM job while I study, assuming full load per semester, which means that I would eventually run out of money. Hence, passive income.
To earn passive income, I should start my own business. Some businesses require more capital than others, and the ones that do may see one borrowing money. In my previous article, I explained that I do not want to just borrow money to reach my life goals because it looks like I am not even trying. But debts with the purpose of growing more money are strategic debts.
So third, I could start a business. At this point, I would be earning both active and passive incomes. Since the income earned from a business is not fixed, I should wait until my business gives me three to five times my active income before I quit my job. This way, I can have a somewhat secure cash inflow as I focus on increasing my passive income.
This whole process could take me two to five years before I go to graduate school. I know some people who, in eight to twelve months, reached a monthly passive income of hundreds of thousands of pesos by working on their business part-time. Whatever the case, I shall let experience guide me.