February 10, 2015 • Page 2 shop online at www.missourivalleyshopper.com Dave Says Generating Passive Income BY DAVE RAMSEY Mabel Adams was out the other day, with her new walker, the one with the basket on it, and a seat for sitting when she gets tired? It’s a purple kind of walker and she likes it. It has hand brakes, too, just like a bicycle. She was headed for the Curl Up ‘N Dye beauty salon to get her permanent renewed, and she had to pass by the elementary school on her way. And there were half a dozen kids trying to get kites to fly in the gentle breezes of February. They can’t wait, she thought, for the stronger winds of March. They’ll run and the kites will billow up behind them, but they’ll have to stop short of the chain link fence, and the kites will flutter down like spent butterflies. She could read their minds, of course. Hey, maybe if I run faster … Mabel smiled and shook her head. Can’t wait for March. Childhood is like that. It’s a can’t-wait time. When you’re eight years old, time crawls by so very slowly. It takes forever to become eight and a half. Lifetimes. Why, when you’re eight, and you finally make it to eight and a half, you’ve accumulated a wealth of learning and experience in Presidents Day Sale Day S l Da 2013 Chevy Equinox, white, all wheel drive ........................ $14,900 2012 Chevy Malibu 2LT, leather, white, 45,000 miles ....... $12,800 L 2012 Ford Fusion SEL, leather, V6..................................... $12,500 2011 Chevy Impala LT, moon roof, leather, remote start .... $13,900 2009 Chevy Cobalt LT, red, 2dr, 80,000 miles miles..................... $5,950 2007 Chevy Trailblazer LT, 4x4, loaded, moon roof ............ $10,900 a 2007 Pontiac G6, moon roof, V6, gray, aluminum wheels ......$6,995 2005 Chevy Uplander Van, all wheel drive, quad seating ......$6,950 a Dear Dave, I’ve been following your plan, and I’d like to find those six months. Well, in a way to make a those five months, anyway, little more money because you can’t wait for on the side. Do six months, so you declare you’re eight and a half at five you have any ideas for generatmonths. ing some passive Push it. Hurry up. Make income? the winds of Spring come Dave sooner. Won’t I ever be eight — and three quarters? Will my Taiwan birthday never come? Dear Taiwan, School will be out for the First, I want to summer in May, but by May, make sure you’re not getting I’ll probably be grown up. involved with some get-richMabel waved to the kids and they “Hi Mrs. Adams’d” quick scheme, like a nothingdown real estate seminar. her and went back to their “Passive income” is a term play. that’s sometimes attached to If only, she thought … if those sorts of things. only the time went by as Passive income is pretty slowly for me, instead of racsimple; it’s income off of ing along. investments. In other words, -----it’s money you set aside that Brought to you by Slim makes you money. There’s Randles’ new book Strange not any other income that is Tales of Alaska, now availreal passive income. able as a Kindle book on If you wrote a book and Amazon.com. got royalties from the sales, some people would call that passive income. I get royalPlease Recycle When ties from the books I’ve written over the years, but the people who would call that “passive income” didn’t follow me around while I was working my tail off to write and sell those things. To me, it wasn’t passive income at all; it was a business. Technically, the government would call it passive income. But they don’t have anything to do with reality. When it comes to passive income, I only invest in two things — real estate, for which I pay cash, and good growth stock mutual funds. Active income usually takes the form of a small business idea or your career. That’s income that you, yourself, are literally creating. But that’s how I look at that stuff. Some people may have a different view on it, but I like to keep things simple. RAMSEY Done Reading! Pickup Trucks —Dave IT’S A SMART BUY! Dear Dave, I’m following your plan and trying to find different ways to save money. What’s a good way to decide whether or not you need full-coverage insurance on an automobile? —Barbara Dear Barbara, I think you should look at a couple of things. First, you need full-coverage or collision if you don’t have a lot of money, because you’ll end up walking if the car gets totaled. You need this coverage even if it’s a $2,000 car. You might keep the deductible a little high to save on premiums and then, if something unexpected happens, you can cover the out-of-pocket expense with your emergency fund. Let’s say you have $50,000 in savings. You’re driving a $5,000 car, and you decide to drop collision coverage because you’re thinking if you total it you can just write a check and replace the car. You can, but then you have to look at the other side of the coin. What does this collision coverage cost per year versus the $5,000 risk you’re taking? I’ve run those numbers a few times, and generally I find collision insurance to be a pretty smart buy! —Dave 2011 Chevy Silverado C1500, w/t with utility topper ra topper.........$12,500 2009 Chevy Silverado LT, crew cab 4x4, power seat ..........$15,500 ra 2009 Chevy Colorado, reg cab, 4 cyl, auto, new tires ........... $8,900 ra 2008 Chevy Colorado LS, reg cab, 67,000 miles, white ....... $8,900 ra 2007 Chevy Silverado, short box, 4x4, loaded, red ...........$12,500 ra 2007 Chevy Silverado LS, V8, long box, full power, gray ........$9,500 ra 2007 Chevy Silverado, w/t, reg cab, long box, clean .............$7,700 ra CARD SHOWER www.yanktonmotorsports.com Please help Anna Pinkleman celebrate her 90th birthday on February 15. Cards can be mailed to Anna at: 57040 885th Rd. Hartington, NE 68739 ——— Dave Ramsey is America’s trusted voice on money and business. He has authored five New York Times best-selling books: Financial Peace, More Than Enough, The Total Money Makeover, EntreLeadership and Smart Money Smart Kids. The Dave Ramsey Show is heard by more than 8.5 million listeners each week on more than 550 radio stations. Follow Dave on Twitter at @DaveRamsey and on the web at daveramsey.com. HELP WANTED Dispatcher/Logistics Werner Service & Trucking is looking for a person with dispatch, broker and/or logistics experience. St. Edward & Columbus, NE Ask for Curt, to get more information Name Reg. 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