So why another article on this ? Just watched a Ted by a young chap on Passive Income and it hits many notes that I have been trying to formulate in my mind. There are many out there by bloggers. Last I can remember I do not have one. At least I couldn't remember. So I should. :)
I REALLY should because I feel is very important and it can help lifes. So if I can help one, just one to think about their future, is enough for my time.
What is Passive Income ?
Income that requires only some work upfront to setup, and spend little of your time in exchange for it thereafter.
What is Financial Freedom ?
When my Passive Income surpass my living expenses.
Why Passive Income ?
There are many reasons
- Out of regular income
- Better lifestyle
- Do not exchange significant time for it
- Alternative streams of income
- Do other things that I like
- Build up your confidence by being financially sound
- Peace of mind
Passive Income is Not
- Instant Returns. It takes time to learn and build it up.
- I view Stock investment returns as passive but not trading.
- Exchange time for money
- Certainly not walk in the park. You need to be smart about doing it.
Don't get me wrong. I love my job. But I am also realist that I could be out of job that is beyond my control. Over this past week I met up with four friends on different occasions. They have one thing in common. They are unemployed. For commoners, once they are out of job, there aren't much alternative to go back to market. One has a studio but do not have enough rental to cover his loan, One downgraded to HDB, One starts doing Index trading and the last One stays at home. There are two more unemployed friends that I did not get to meet. One just got a contract job for a year while the other still looking for something to do.
So the earlier we can start the better. What will be your Passive Income ?