Passive income allows you to reduce your working hours and earn more. Passive income is earning money without you having to work. If you work is because you choose to work. To become financially free you must earn more passive income than your monthly living expenses.
The key question is: how do you create passive income in your life?
You can create passive income by being a parttime or fulltime business owner and have your business working for you or by being a parttime or fulltime investor and have money working for you. You can achieve either way by first saving some money.
I have no money so I can not invest or I have no money so I can’t start a business are excuses. Excuses are lies that you tell yourself. If you can buy a daily cup of tea, you can start saving money to either invest or start your part time business. To achieve financial freedom is a mindset. Your thoughts will lead to actions. Save, invest and be creative on your path to financial freedom.
You don’t need a fortune to start a business or start investing. You just need to start. Start saving 10% of your income and use a portion of your savings to start your parttime business or investing. Investing your money in your business or an investment will get you closer to freedom than letting fear holding you back.
Achieving freedom has nothing to do with the amount of money. The habit of investing is much more important than the amount of money. Start small and grow the amount over time. Start with 1% or 10% of your monthly income. As your monthly income grow the amount will also grow. Do what you love. Make time for it now. You don’t have to wait for the perfect moment. The perfect moment is NOW.
Do you want to start your own business, invest or both? Choose what you want. Choose what feels good for you. Make time for it. Start with two to three hours in the weekends. Do some basic research. Talk with people who have already done what you want to do. If you want to achieve something, you will find a way and not an excuse. When the student is ready the teacher will appear. You will start seeing opportunity all around you.
Business passive income
Business passive income is income from a business working for you. Think about what kind of business there is that you can start, which don’t require much of your time over a period of time. Notice, I said over a period of time? You have to work in your business at the beginning. As soon as the business systems are in place, the only thing you have to do is to maintain the systems.
You create the systems once and it will work for you forever. Think about online businesses, writing a book once and getting royalties for your books on an ongoing basis.
Passive income from investments
There are many investing vehicles. Choose a vehicle and educate yourself about the vehicle. Invest in yourself before anything else. Learn everything you can learn about it and than invest to have money work for you. You might ask yourself if you must go for the low investment returns or the high investment returns.
An important investing rule is to invest in a security bucket first. Once you have money that covers 6 months to 1 year of your monthly living expenses you can invest in the growth or the dream bucket with higher investment returns. Even if you want to find an investment manager it’s good to know about the vehicle you want to invest in.
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