“Son, you have some of that money mailbox Nothing you go out just to the mailbox and get it. it’s the only way to go. You’ll never work rich for the other guy. ‘ “
I can hear the words of my father as if it was yesterday. As my father used to call “mailbox money” is what experienced investors call today “passive income. “It’s money you do not have to work You get it whether you work or not, if you work, it is because you choose to,… Not because it needs
You can not be passive income as employee to get. you can not get as an independent. you work hard for that money. you provide a service and you pay. If you do not provide the service, you do not get paid. It’s as simple as that.
no, what you want is the kind of money that comes in like clockwork, even if you do not choose to work. the kind of money you get as a business owner or an investor. Oh, I guess you could also winning the lottery or inherit. But assuming that does not happen, you’re going to have to do it as a business owner and / or investor.
Now when I talk about entrepreneurs, I not independent people who happen to be in business for themselves. You know, like doctors, lawyers, accountants and the like. They are simply trade their services for money. It can be a lot of money, but it’s not passive income. The only way they can get paid to provide the service.
A true entrepreneur may leave the company for months at a time and still get paid because they either capable people have been hired to run the company or they type of business that generates income without the operator for it to work every day.
And when I talk about investors I am talking about the collection of sufficient investment, so as to cover the proceeds of these investments your costs. Stocks, bonds, income-producing real estate or assets that do not generate income themselves but appreciate enough in value so they end in income-producing investments could be considered.
In fact, the best definition of financial freedom is enough passive income to match your expenses. The day that happens is the day you financially free. It means that you can live where you want to live, go where you want to go, do what you want to do, and do it when you want to do it. Why not? And I do not care what your current circumstances. You can do it.
And if the credit card debt, you are supporting the bank with a passive income at a very high interest rate. I hope they can give you a thank-you note every once in awhile because you work hard for them.
Second, you need to build a number of assets in investments. Probably the only way you will be able to do that is by saving more money. And the quickest way to save more money is to cut costs. If you spend money on something you do not need – or maybe even want – you’re not just spending those dollars, you’re spending the future value of the dollar.
This is because if you have a dollar instead of spending saved, that would be the dollar more for you than a dollar in the future are worth due to the magic of compounding over time. But if you’ve spent once it is gone forever.
Thirdly, you need to start a business. Even if you are happy and paid work is a good idea for a business that you can start giving some passive income in the future. And in the information age, you can do it with very little up front money.