Passive income is income that you receive while you are having lunch, on the golf course, playing with your children, walking in the bush, at home and asleep. It comes from assets that you need do little or nothing with to produce income. These assets are investments that will have no (or at least little) borrowings, so that you are secure in your position. Financial freedom is having enough in good solid investments (well diversified) to be able to live the rest of your life how you want. It can also be described as having ‘non-treadmill income’—money that you do not have to go out to work for.
For true financial freedom, the income you have must be achieved passively, not by actively working for it. You only get significant passive income if you have a lot of capital. To be free, your income has to come from capital invested, not time invested.
source: Coach Yourself to Wealth
Mantab bro!!
ReplyDelete