Is passive income important?
Well, if you can't earn active income after you are retired, the plan should be to earn passive income instead. This can be in the way of running some websites, some investments that are paying good increasing dividends with time, or even some real estate rental incomes that are going to go up as the inflation goes up. These are just a few ways of going about it. One should plan now to have a good source of passive income by the time he retires and becomes lesser and lesser dependent on active income and even pensions.
I think the answer to this question lies on the profession one is working on. For some people, maybe the risk at their current jobs (that they also love) is not so high and they don't really need to think about generating a source of passive income. However, for guys like me I think it makes sense in today's world to spend some time planing for passive income. There are multiple ways of generating passive income, some need less effort and some need more and we'll be discussing the many ways through this blog. However, the first issue to tackle today is to understand its importance.
People used to live a lot less even a decade back. And now with the advances in the field of medicine and generally better living conditions, people live a lot longer than they used to. Why is that a problem? Well when people used to live till 75, it was still easy to plan for those 15 years after retirement but now when they live upto 90 they are lot less prepared. And with time this number is only expected to increase. Now, if we think about preparing for a 30 year retirement in a 40 year career that's a lot of pressure, isn't it? And believe me, 30 years is a long time for inflation to show its cruel effects. Not to mention, the parents are going to become less and less dependent on kids because of general capitalist tendencies that the world is achieving.
Ok. So, what's this all about?
Well, if you can't earn active income after you are retired, the plan should be to earn passive income instead. This can be in the way of running some websites, some investments that are paying good increasing dividends with time, or even some real estate rental incomes that are going to go up as the inflation goes up. These are just a few ways of going about it. One should plan now to have a good source of passive income by the time he retires and becomes lesser and lesser dependent on active income and even pensions.
We'll go through each of these passive income sources one by one and maybe I'll share my thoughts on how one can go about it, and maybe you guys can share your thoughts.
0 comments:
Post a Comment