Passive income is great. In fact, I believe the entire idea of retirement should be thrown in the trash and be completely replaced with the objective of designing your life for passive income.
I’ve personally been a passive income junkie since I was 18 years old, and today, I’ve built up a very sizable monthly paycheck from these investments. Every month, the checks roll in, along with direct deposits.
Occasionally, when my children (8, 6, and 3) notice me depositing a check with my iPhone, they ask me what it is, and I tell them, “Well, the tenants landed on our property.” It’s a Monopoly game line they certainly understand.
Of course, it’s never truly as easy as many gurus describe, and the big myth is that it’s never 100% passive..
It also took years of active income and savings to make those passive income checks large enough to actually mean anything to me.
The rental properties that provide income are the same thing. There is always something going on with a few of them, whether it’s a vacancy, late renter, or maintenance issue. Unless I am actively involved, passive business income, from my experience, is just stagnant passive income. It’s essentially a hobby.
Dividends are fun, and so are private real estate investment trusts, but I would put them more in the category of compounding your way to wealth, rather than passive income, since it’s going to take more than 6 figures to be able to have any real impact on your life.
Where does this leave us as passive income investors? Exactly where we started before we realized that it takes a little work, even for the most passive of income investments.
The fact is you want to surround your life with cash flow. You want to focus on saving, building, and accumulating income-producing assets.
A combination of debt reduction or expense elimination in your life and an income strategy is what will ultimately give you that peace of mind that financial independence provides.
In the game Robert Kiyosaki created, Cashflow, you win by generating enough income to pay for all of your expenses. It’s an admirable goal, and I suspect that as you achieve this objective for yourself, you’re still going to want more active income, more passive income, and even thicker profits from your investments.
The truth is that no matter what stage you’re at, getting rich or richer is just an incredible amount of fun.
I’ll have 5 income ideas to you tomorrow, as well as a new income idea each week in November.