ESCAPE THE RAT RACE
Ever thought of living a life which is financially free and how to achieve it?
One of the keys to achieving financial freedom is to start building a source of passive income early in life. Passive income is the one which does not require your direct involvement to earn it.
The question arises, why does one need passive income? The reasons differ from person to person. An effective way to know the answer is by following an easy exercise. Consider that you have won a lottery today and the prize will help you achieve all your financial goals. The question now is what will you do in life knowing that you don’t need to work for an earning?
The answer you get is the kind of life you want to live by your choice. It allows you to give more time to family, friends or go for a vacation. For creative people, passive income comes as an opportunity. When you don’t have to trade your time with money, it will help you unleash your hidden talents.
Financial freedom is creating such sources of income which is enough to fund your present and future living expenses, without compromising the desired standard of living. It gives the freedom to choose whether to work or not, how much to work. Creating such a source of income is a real asset for you and your future generations. Create multiple sources of passive income, which will increase your total income, without working for it. You can be in any profession or job or business, find a way to generate income passive income that suits your job title. Create a source of income that requires fewer efforts to maintain it. For example, if you are a restaurant owner, you can look forward to appointing a manager to run the restaurant, or an open chain of restaurants by creating a brand.
If you have the professional expertise on any subject, you can look at writing a book and earning royalties by publishing a book or creating an e-book, and also create a flow of passive income through membership subscription on the e-book. If you are a property investment in shares of mutual funds, creating internet contents etc.
Ramesh Dholakia started saving soon after he received his first salary when he was 25-years-old. He kept aside Rs 3000 every month. Today he is 55 and plans to retire. The accumulated balance in his account at the rate of 8% interest is Rs 45,00,000. By keeping this money at the same rate of interest in fixed deposit, he will be able to get Rs 30,000 every month. That’s the power of generating a passive income without working for it.
If you want to have a decent retirement, start early and create a stream of passive income.
The earlier you start building a portfolio of passive income, the sooner you will achieve your financial freedom.
So why wait for your 50’s while you can do it your 20’s?
The earlier you start the better the rewards will be, so start today!
– Jane Sha