The holy grail of personal finance is generating passive income for financial independence. You will have greater freedom to do what you want if you have enough passive or semi-passive money. If you’re going to reach financial independence before the usual retirement age (60+), you must generate passive income.
There is no one-size-fits-all passive income strategy. For example, investing in your first rental property requires a significant investment of time and money. But once you get going, it’s not difficult to gain momentum.
PASSIVE INCOME AND THE ROAD TO FINANCIAL INDEPENDENCE:
Passive income is not the same thing as a salary. Passive income is a type of income that is not based on time or effort. When you earn passive income, your money is working for you while sleeping or on vacation. Passive income is often looked at as a retirement solution.
Passive income is also described as a financial strategy that involves earning money from investments that you don’t have to personally manage. The term is usually associated with a lifestyle of spending less time working and investing in a range of products to earn money. That money can then be invested passively or can be saved.
ESCAPING THE RAT RACE WITH FINANCIAL FREEDOM:
The feeling of financial independence and the ability to call yourself self-employed has given birth to many retirees. But, unfortunately, the previous generations of retirees were learning the hard way that the lifestyle and freedom they wanted could not be acquired with just a job.
So now, gen Xers and millennials seek to escape the rat race with the financial freedom that comes with passive income. Imagine a life where you never have to worry about money to feed your children, donate to a charity, or have a vacation. That life may be a dream, but it’s a goal so many people aspire to.
The Top 8 BENEFITS OF PASSIVE INCOME:
Passive Income makes life easier. You can build passive income by selling your talents or time. Here are just eight from a long list of benefits from creating passive income:
- Stay in control of your income
- Provide consistent income
- Increased revenue
- Reduce stress
- Work-life balance
- Financial independence
Passive Income makes life easier. Consider this as a percentage of your total income and the catalyst to your life of financial freedom.
5 IDEAS TO CREATE PASSIVE INCOME:
Many people are creating alternative sources of income. If you decide to pursue making passive income, check out these 5 ideas to get started:
- Affiliate Marketing – affiliate marketers earn income by referring customers to online merchants who sell products, and the consumers purchase those products through their affiliate program.
- Renting out your extra space – a beautiful living room or outside patio can be an ideal location for parties, bridal showers, and baby showers.
- Use your car for advertising – contact a specialized advertising agency to have your driving patterns evaluated. If you’re a good fit for one of their advertisers, the agency will “wrap” your automobile in advertisements.
- Rent your home while on vacation – consider renting out your house while away for the summer, if you need to travel for work, or even if you just want to get away for a bit.
- Retail Arbitrage – use online marketplaces like eBay or Amazon to sell things you discover cheaper elsewhere. You’ll profit from the difference between your purchase and sale prices, and you’ll gain a loyal following.
THE BOTTOM LINE:
If you were to earn enough money with passive income, what would you do with it? Would you have more time to spend with family and friends? Take the opportunity to travel the world?
You have a consistent paycheck from your 9 to 5, which is excellent. But you know deep down that you’ve always desired more. More cash. More time. More flexibility.
And now you know that passive income is the vehicle that can take you to the destination. If you’re just starting out, analyze your skillset, build a foundation, stick to your plan, and soon you will live the life you have always dreamed about.