Passive Income

Hey readers,

Just a quick note today.

I mentioned in my last post the importance of building up your assets as opposed to liabilities.
I think I need to clarify this point a little more. I don't mean to say that you should avoid purchasing luxuries at any cost. Of course, go ahead and buy that flat screen TV. What I am saying is that, depending on your current situation, you will have to prioritise accordingly. If you can justify a purchase, ie it fits into your budget and you don't have to go into debt to pay for it, don't feel guilty and don't regret it afterwards.

My main point is, that by focusing on attaining revenue earning assets, you can gradually build a substantial passive income. This will eventually give you the freedom to purchase liabilities and creature comforts with no extra exertion on your part.

The beauty of a passive income is that it is constantly working for you. You can earning money while you sleep. Yes, when you are starting out your passive income may seem insignificant. It might be in the form of few dollars from credit interest, or a trickle of money from a home based web-business. You may feel like it isn't even worth it. However, with perseverance, you can increase this amount exponentially. If you reinvest this seemingly meagre income wisely, the sky is the limit. You could transform those few monthly dollars into a few thousand dollars of income. For example from rental properties or businesses you own.

So, for starters, don't think it is all too hard and not worth it. If you never start anything you'll never achieve anything. The sooner the better. Do some research and find yourself a good, no fee, high interest yielding bank account. Consider closing any accounts that you don't use or changing banks if they are bombarding you with unnecessary charges. Often, you are paying fees for services and bells and whistles that you will never need or use.
Then go and try and find as many sources of passive income as you can. The more revenue sources you have, the less reliant you will be on any one of them.
Develop and expand these vehicles and you will well be on your way.

Last thing. I didn't say that acquiring and growing a passive income won't be hard work. You will spend time and probably a little bit of money in developing it. But in the end it is worth it.
Persevere.

Start small, but think big.

Park Namsu