This is Part 2 of The Power of Passive Income and I am finishing up my lessons from passive income. You read the first 5 lessons in Part 1 of this series. I hope this advice provides some goals and next steps for you as you pursue creating passive income streams to allow more freedom in your life.
If you begin down the road towards financial freedom through passive income you can easily become discouraged. At first the extra $100-$200 each month will really excite you, but it is easy to become disheartened at the time it takes to grow this income. Just remember the principle of The Compound Effect: small changes made consistently overtime will equal huge results. There is no statement that better describes the growth of passive income.
I first learned about the power of passive income while educating myself in the area of real estate so I have had an extreme focus on growing passive income through real estate. At times I think I considered this as the only way to grow passive income, but nothing could be further from the truth! In fact, some of the greatest earners of PI have earned it with methods unrelated to real estate. I will discuss some of these methods in Part 2.
The way I make decisions now versus when most of my income was earned income is much different. My decisions are now based off what I want to do and are led solely by my goals and dreams for my life. Before, I was more concerned about my next paycheck than living the life I always dreamed.
I was hesitant to include this lesson but I think it’s important. While passive income is earned with little effort to maintain it, there is still effort that must take place. Often people think that passive income means you just set it and forget it, but this is not the case. If you do not make sure the golden goose is healthy, it will surely die! While this takes much less time than trading hours for dollars, it still requires that you monitor and maintain the health of the income.
Nothing is better for your stress level than a solid stream of passive income. Taking off for a month and traveling Europe is now obtainable without losing sleep over the income you will lose. The fear of what would happen financially if you or someone close to you were to become ill for a prolonged period is diminished. There is a greater level of freedom that comes with passive income streams.
I hope these lessons are motivation for you to focus on growing your passive income and creating the financial freedom you deserve. If you are interested in building passive income streams you do not want to miss Parts 3 and 4! I will discuss in more detail some of the many ways to earn passive income. I think you will be encouraged and motivated as these strategies will work no matter your level of savings or cash to invest.
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Do you have more questions about passive income? Ask them in the comment section and I will be happy to talk more with you! Click here to leave a comment.