How Much Passive Income Does It Take?
We all have that secret list hidden away in the back of our brains of all the things that we need and all the things that we want. However, seldom few know exactly how much money it takes to turn their most desirable dreams into reality.
To many, being financially free means having all the passive income you need to live the life you want to lead. Financial freedom is not a specific dollar amount or annual income. Your financial freedom is all about you and the way of life that you want. If you are happy living in a doublewide trailer with all the bills paid, the amount of passive income you need will be minimum.
On the other hand, if you want to travel all around the world and drive a Bugatti Veyron. Wealth creation will work for you no matter where you come from or where you want to go. All you have to do is set the bull’s-eye and take aim.
Passive income is exactly want it sounds like – money that comes to you regularly that you do not have to work to receive. Now, this does not mean that you will not have to work at all, just not eight hours a day, six days a week. With passive income, whether you work all day one day and none the rest of the week, the money will still be there for you.
The perfect example of passive income is the songwriting industry. A writer writes a song and every time someone sings the song, plays the song in a movie or makes money from the song in any way, the writer gets a cut. If the song is good enough, the writer will never have to work again. However, in most cases, it is best to write several songs to create a number of streams of passive income. Having several income streams is the best way to insure against failure with any one passive income source.
Sean Rasmussen
Success Communicator
Aussie Internet Marketer © 2004 – 2010
Tags: being financially free, Financial Freedom, Passive Income, Wealth Creation
July 16th, 2010 at 9:55 pm
To be financially free is a good goal for everyone to aspire to. Hopefully I can set up quite a few blogs eventually and maybe make this a reality
July 18th, 2010 at 6:20 pm
Hi Sean,
Yes “how long is a peice of string” great explanation of differing needs. Wealth creation should be ongoing due to the formula… Expenditure will Expand to = Available Funds…… (Wife’s theory) and proven correct many times.