What is the goose that lays the golden egg in the world of finances? You got it, passive income! (Now don’t be too proud of yourself; the answer was in the title of the blog.) Just try having a conversation with someone about their financial future and goals and I can almost guarantee it will include or even revolve around passive income.
Many of you have seen me reference passive income throughout my blog but have been left asking, “What exactly is it?” and “How do I earn it?” For the next 2 weeks I will be shedding some light on the topic of passive income in a 4 part series entitled: The Power of Passive Income. In Parts 1 and 2 I will share some of the lessons I have learned while creating passive income and Parts 3 and 4 will give you some practical ways that you can grow your passive income.
There is no greater method to experiencing financial freedom than passive income. I have worked extremely hard at growing this form of income over the past 10 years and can personally attest to this fact. It is through my experience that I have become passionate about helping others realize this freedom, allowing them to be rich in life. My focus goes beyond the writing of this blog, coaching and speaking. I have redesigned my real estate brokerage, MacDoc Realty, to create an amazing passive income opportunity for our agents.
While the concept of passive income is quite simple, the act of growing it can be rather elusive, but it doesn’t need to be! Passive income is simply any monetary gain earned with little effort to maintain it. People will often wait until they have money saved up in order to buy an asset that provides cash flow, but this is only one way to earn passive income. I will explain in more detail in Part 2 of this post the many ways you can build passive income with or without a large amount of cash at hand.
In this post, I would like to give you the lessons that I have learned from creating passive income. While I can currently sustain my lifestyle from the passive income I earn it was not always this way, and the process of getting here was not always easy. These lessons should help you along your journey.
Now that you have found the goose that lays the golden eggs, don’t put all of your eggs in one basket. While some passive income streams may last a lifetime, many of them will offer an impermanent period of strong income. Like diversifying your investments, it is also important to diversify your passive income streams. This will help maintain a balance for those times when some streams are weaker while others are stronger.
There are many opportunities that exist for you to create passive income without investing large amounts of money. I will discuss them in my next post.
This is the beauty of passive income. By following the model of buying assets instead of liabilities you can create streams of income that will pay off for many years to come. This will give you the ability to buy the things you gave up and much, much more! We often find it hard to deny ourselves in the moment, causing us to lose our focus on growing our passive income.
These are just a few of the lessons that I have learned through creating passive income. Don’t miss Part 2 where I will give you the last few lessons regarding passive income and in Parts 3 and 4 we will begin to discuss some practical ways that you can create passive income streams in your life!
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If you already have passive income streams, what lessons have you learned from them? Do you have any questions regarding passive income? Ask them here! Click here to leave a question or comment.