Generating Passive Income
By Dale Gillham |
Most of us wake up everyday to go to work and earn a wage that pays for our expenses. Then we repeat this process until we are at an age, and hopefully have saved enough of our wage, where we can afford to retire. Now while this is a little over simplified, as a little more happens along the way, it is pretty much the circle of life for most.
You go to work to earn an income and depending on how much you earn determines how much you can afford to spend, and as we know most people spend most and, in some case,s more than what they earn, which is why so many struggle in retirement. But, surely there is a better way?
Generating a passive income stream
Opening up a second income stream and generating passive income, in addition to your wages, is one of the best ways you can ensure an early retirement or retiring on much more than the average person. Not only will you have the option to retire early but you will be able to afford to live your chosen lifestyle along the way. The added benefit is that you will also have less financial stress over your lifetime.
These days the amount of money that people earn from their job...or as I like to call it, journey of the broke, is barely enough to cover expenses. It’s no secret that the cost of goods and services is rising at a faster rate than salaries and this is leaving consumers with the challenge of spreading their money more thinly.
This often results in one of two things: the first is that there is little or no money left for lifestyle or investment choices and, the second is that some are falling into the debt treadmill, which of course is worse. The only way to fix either situation is to earn more, spend less or do both. Basically people need to be more conscious of their money and how they earn it and allocate it.
Generating passive income is a great strategy to accelerate your wealth, after all you work hard for your money, and so why not get it working for you. so that you can achieve your financial goals. You may have a goal of getting out of debt, buying a house, a new car, sending your kids to college or go travelling in retirement. The possibilities are endless, and everything is achievable if you get the plan right.
How to generate passive income stream
There are a number of ways to generate passive or secondary income, which include:
- investing in shares or property,
- earning interest on your savings,
- writing a book, or
- opening a business or online store.
With the internet, it does not matter where you live, you can earn extra cash, you just have to have the right idea and put some action behind it. Each of the strategies I have just mentioned will provide you with an alternate way to generate passive income and, depending on your skills and expertise one of these options may be viable for you.
One strategy I preach is learning to invest and making your money work for you. The stock market is a fantastic way to generate a secondary income and what many of our students have realized is that in gaining the ability to trade the market, it has also opened up the possibility for them to replace their day to day job and earn an income from the market, right from their own home.
Generating income from the stock market really is not as difficult, as most professionals and institutions will have you believe. That said, like any skill it takes time to learn and practice and you do need to get the right education not just any education.
The most important factor when it comes to learning any skill is to start practising the right way and learn the right habits.