Passive Income, do you know what it is?
Passive income is income that requires little to no effort to earn and maintain. It is called progressive passive income when the earner expends little effort to grow the income. Examples of passive income include rental income and any business activities in which the earner does not materially participate.
Now, it’s easy to think of passive income as money earned while sitting on a beach sipping mojito, but there is a lot of work involved. But, if you’re worried about being able to save enough of your earnings to meet your retirement goals, building wealth through passive income is a strategy that might appeal to you.
Passive Income Tips
Keep an eye out for
ideas that show
track records. Don’t
fall for any passive
income ideas that
promise a quick
return or require
huge amounts of
Look for ideas that
are steady, profitable,
Hopefully the first question you’re asking yourself, “why even create a passive income revenue stream in the first place?”
Your income is your greatest wealth-building tool—a tool that typically requires your active participation in the form of a full-time job. Even if you love your job, we at Pries Capital – An Investment Firm are willing to bet you wouldn’t mind earning some extra income without the blood, sweat, tears, and time commitment of another job. In fact, there are several benefits in creating a passive income revenue stream:
- Increases your building a legacy of wealth plan
- Creates an opportunity to retire early
- Protects you from a complete loss of income if you lose your job
- Provides an additional source of income when you’re no longer able to work or if you outlive your retirement fund
We know, the second question you’re asking yourself is, “how much money can I make?”
Passive income generally won’t make you wealthy overnight, so forget about any get-rich-quick schemes you’ve heard of. But steady, profitable passive income options can build some serious money over the long run. We’re talking anywhere from a few thousand dollars to hundreds of thousands of dollars—depending on the income stream.
The whole idea behind long-term investing is to create income for retirement. Think about passive income as a type of low-effort income that can be accessed at any time.
One way to build passive income is by purchasing real estate and renting it out to tenants. Rental properties are the greatest source of extra income.
Building a legacy of wealth that lasts…
Want a clearer picture of how different income streams might fit into your overall building a legacy of wealth strategy? If so, connect with one of our professional investors and create a game plan to start creating real wealth that lasts. A real investor can look at all your income streams and help educate you in developing a financial plan that meets your individual needs. Go ahead and contact us today!