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Passive Income – Ultimate Leisure Time

Jun 9th 2011 at 3:44 AM

 

Who does not want that? The normal person spends at least a third of his/her life slaving away for somebody else, just to be able to stay alive and have a roof over the head. Some people, however, seem to never have to work and still have everything they need and more.

How is that possible? They have a passive income to sustain them.

Where does passive income come from and how can one generate it?

Passive income usually is derived from an investment or asset of some sort. This means that it does not just fall out of the sky. In every case there was an input first. You must have/ own something which you can use to work for you to begin with.

Here are some sources of passive income:

it can be money which you invest somewhere so it earns interest for you.                            It can be a tangible asset like a car, which you can lease or rent out to somebody else, so you get paid for the use of your car instead of using it yourself. It also can be real estate which you own and then rent out or stocks and bonds or royalties you own.

Okay, so normal people think that is just for the rich and they work and live from day to day. They spend everything they earn without ever thinking they could generate a passive income for themselves by spending their earnings more wisely. Most even spend more than what they earn each month since buying on credit is made so easy.

With the advent of the internet and the declining economic situation, selfish and shrewd marketers are trying to cash in on the urgent need of normal people for an extra income to cover their debts. All kinds of empty promises are made to get more sales. One of those promises rampant in especially the MLM field is the promise of residual or lasting income. Sure, on paper this may look promising, but the reality is a different thing. Besides the fact that it is impossible for one person to fill a matrix of 500, let alone a few thousand members, drop-outs constantly erode whatever income may have been achieved. The result is a boatload of never ending work promoting a system which will at the most deliver a pittance. This definitely is NOT PASSIVE income.

Passive income is an income without work.

Question now is: can the normal person ever hope to reach a passive income without accruing new debts? The answer is: Yes.

How? Answer: by risking small amounts which he/she is spending daily in any case, however foolishly. One large pizza and coffee less can already put him/her on the road to a passive income besides reducing body weight.

It just is a question of setting priorities, taking calculated risks and abiding the time for an investment to mature to the desired amount. Sure, to reach a sustainable passive income from small inputs does take longer than from larger inputs, but taking the first step is imperative to ever attain that desired stage of ultimate leisure time.

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