Passive income can be created from a number of different places. The most common places include, but are not limited to, the stock market, business, real estate and intellectual properties. In the stock market we can invest in securities that generate monthly dividend payments. We can create, purchase or invest in a business that is fully operated by employees. In real estate we can purchase a rental property in which the tenants pay rental income each month. Intellectual properties are creations that can be protected by a copyright, patent, trademark, etc. such as music, books, e-books and branding for which royalties are paid for their use. Regardless of where or how the income is generated, the key is making a conscious decision to put in the effort to create it. The simplest way to start is by saving and investing the money earned from a primary job. No matter how small or little the amounts saved may seem, it will be the accumulation over time that will make the difference, like a snowball effect. Start with any amount, be disciplined, be consistent, be patient and one investment will lead to another.
Where Does Passive Income Come From?
You know what it takes to be financially independent and you understanding how generating passive income is the key to that independence, but you may not think that generating that type of income is attainable for you. The truth is that generating passive income is by no means out of reach for anyone, no matter where you are on your financial journey.
Obviously, the sooner you create and start to generate passive income the quicker you will get yourself to financial independence. But, don’t worry if you’re just getting started on your journey, because whether you realize it or not, you’re already laying the foundation. The fact is that the early stages of the journey require the basic building blocks for creating and generating passive income.
“The key to financial freedom and great wealth is a person’s ability or skill to convert earned income into passive income and/or portfolio income.” – Robert Kiyosaki
It’s the basis for financial well-being and it’s the only way to achieve financial freedom! Without a doubt, passive income still takes some work, particularly in the beginning, but once it’s up and running full force, it should take minimal upkeep to keep it going and to keep it growing. That doesn’t mean it can be left completely alone. It will always need regular check-ups.
In a nutshell…that’s the difference between your money working for you instead of you working for your money! When you have to work for your money, it takes every bit of your waking time and effort to generate it. But when your money is working for you, it generates money while you’re asleep. That’s the beauty of passive income and why it’s the key to financial freedom!
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