Wondering what you should do with your passive income? Today's episode outlines a strategy to take you from earning active income through building legacy wealth that can be passed on to your heirs.
Passive Income is income earned with little to no effort, often from investing time or money that works for you and generates a monetary return. Whereas, active income is earned by 'actively' working for it; such as, performing at a job or providing a service.
Passive income is sought after because it gives people a chance to earn money while also freeing up their time so they can spend it doing things they love.
If you are working in a W2 or own your own business that is draining your time and energy, passive income is a great way to develop a freedom lifestyle.
I was able to quit my job when my husband and I began saving money each month. We were smart about it, though, and didn't just stick our money in a savings account, we put our investment in an asset that appreciated which doubled over time and exponentially helped us.
If I would have had more time and education, I would have deployed some of those assets into passive strategies, but at the time, I did not have the education I do now.
If I could go back and redo my exit plan knowing what I know today, I would have invested in passive strategies because a year after moving I was again in a W2 situation.
This is why I recommend the second step of the process be to diversify your investment into passive strategies. If you are just getting started and would like an overview of passive income ideas text the word 'PIE' to 33777 to get your copy of 5 Ways to Earn $5K / month with Passive Income.
Sometimes, it's easier to find one strategy to focus on that replaces your income, but I strongly encourage you to expand from there.
I like to build micro-businesses. Essentially, each passive project I build is it's own micro-business that I use to diversify my income. To me, this is very important because I don't like to put all my eggs in one basket just in case something fails.
The last step is to build legacy wealth. There are a few ways to do this, but one important one is to invest in Real Estate. (Especially if you're in the US)
In this episode, I refer to a few key people to help with this step. I've listed the recourses below:
The Private Banking Strategies Podcast
Dustin Heiner with Master Passive Income
Still want more?
Check out these other episodes:
How to travel the world and live the laptop lifestyle: https://open.spotify.com/episode/7lT4VPBnL00lTYnfwp9EVn?si=6lixq7A1QxKzkoo9P4kXMQ
Automate Your Small Business for Massive Growth - https://open.spotify.com/episode/0Tjl0oJdkJRdIFfHiAajsw?si=21d1f6903eea4962
From Humble Beginnings to App Developer and Multi-Dimensional Entrepreneur, Aaron Knnip tells his story...
https://open.spotify.com/episode/78eJCakSRaOM44XiyUdnvY?si=5SXlH1wGTBO9I_zVyFNr0A
This podcast uses the following third-party services for analysis:
Chartable - https://chartable.com/privacy
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