Design Your Dream Life Through Passive Income
Reasons why you should start building a new life strategy
Through my whole life, I always felt a little bit out of place talking about what should I be doing the rest of my life; It always has been incredibly difficult for myself picture me doing the same thing for the next 45–50 years, that’s the reason why it was so difficult for my to choose what to study on college. For pure casualty, I stumbled onto passive income, and this make realize the possibilities that this presented to my life because now I don’t have to worry about not receiving a check every month, so I can focus in what I want to do with my life.
Types of incomes
First, you have active or earnt income; You are getting this type of income when you are swapping your time for money, this is the type of income that 99% of the world is getting.
This is the type of income that everyone with a regular job is getting, you go to your job and do whatever you have to do through your working day, and at the end of the month, you get a paycheck.
The other type of income is passive or recurrent; This is when you do the job once and you get paid recurrently, usually this type of income don’t suppose a big amount of work, actually you usually get paid for doing a little or even no actual work.
Why passive income is so important?
To show why is important to start creating strategies to create passive incomes, I want to extend the question “What are the reasons why your paycheck would stop coming in?”.
We know that there isn’t a perfectly stable job, what I mean with this is that there are always going to be reasons why you could stop getting paid, you could get sick or have an injury that stops you from going to work, you could get fired, or being realistic, the world is moving to fast and this could mean industry changes that could get as a result you losing your job, maybe because of modernization, financial crisis, etc.
The main benefit of passive income
If you start creating strategies to create passive income streams, there is going to be a moment when your passive income is going to exceed your cost of living — What you spend on food, utilities, and any other kind of daily basis expenses.
When this moment comes, then you are financially free; This means that if you happen to lose your job or not get a paycheck, you can live infinitely forever.
Through the pass of the years, I’ve done a lot of different jobs, and I like doing them, don’t get me wrong, but they didn’t light me up.
I couldn’t see myself spending the next 50 years doing those things, and like myself, about 60% to 70% of people don’t like their jobs, some of them really hate their jobs, but they have responsibilities to cover, obviously they need to have those jobs to cover their expenses.
Passive income gives you the possibility of focusing on doing what you really want to do, instead of what you need to. Something important to mention is that living from passive income streams isn’t something that only geniuses can do, this is something that anyone can do if they start working on it.
Albert Einstein calls the compounding effect the eighth wonder of the world
This means that a little bit of action is going to create something really special over time. Regarding passive income that means that a little bit of sensible investment and time, are going to give you financial freedom.
The risk of not taking action
We have to start thinking about the costs of not taking action over our plans and ideas, usually, we give ourselves the freedom to defer decision making, and we have to start giving the importance that has that we are losing time instead of doing.
What happens if you don’t focus on building up passive income?
Your predictable future is not going to change, that is what you are right now, the future that you are building at this moment, for example, if you are studying an engineering degree, you’re predictable future would be you working in someplace where you can apply your degree.
Not changing your predictable future is not a problem at all if you like what you are doing and where are you headed to be, but you may want something different for your future that what you are doing now, and building passive income can help you to change the things that you could do in case you wanted to change the things where you will spend your time in the future.
What happens if you do get your passive income?
You could immediately start thinking about buying whatever you want, it could be a fancy car, a house, anything, and that is great, having the possibility of buying little things that caught your attention is amazing, but the most important thing for me is to ask ourselves What would I would be doing with my life if money was no object?.
Would you travel? Would you go and learn how to surf in Hawaii? Would you do yoga in India? Would you go and help orphans in Cambodia? How would you spend your time if you haven’t to be worried about the money to pay for daily basis expenses. Do what you are passionate about irrespective of the paycheck.
Before you climb the ladder make sure it’s leaning up the right building
— Stephen Covey
I want to encourage you to choose what you want to do with your life instead of doing what you’ve been set up to do, that’s not something that a lot of people haven’t thought about.
I know that all of this may seem risky, but I assure you it has more to do with our own beliefs that limited us to do some things because we feel more comfortable, in terms of risk we have to remember the risk that implies not taking action, what are the opportunities that we are missing because of not doing this. And to conclude; anyone can do this.