Looking for financial freedom and wants to know how to get it?
Financial freedom = Passive income > monthly expenses
The term "financial freedom" and “passive income” is frequently heard these days, but not too many know exactly what it means. In this article we will discuss about passive income earning opportunities to become financially indipendent in great details.
What is financial freedom?
To put it in a nutshell, financial freedom means that you get to make life decisions without being overly stressed about the financial impact because you are prepared. You control your finances instead of being controlled by them.
What is passive income?
The difference between active income and passive income is that the former requires the constant input of time to generate revenues whereas the latter doesn’t. In active income, you get paid as long as you work, but with passive income you can make money whether you are working or not, but it takes a large upfront investment of time at the outset and a lot of work at the front-end.
How passive Income help us to be financially free?
Passive income can actually result in great returns with relatively minimal effort, but you must nurture them until they reach a certain point. In other words, you need to put the work in ahead of time before you can start to see reliable cash flow coming in without much effort on your behalf. For instance, if you are in life insurance, all commissions earned aren’t restricted to the first year as you get paid till the policy is valid. However, you need to do put in a lot of effort and time in order to secure policies that will keep paying, and ensure they are renewed as well. But once you do, you can get the financial independence you desire; with sufficient policies, you might not need to work after a few years!
Where you can Earn passive income to become financially independent?
1. Real Estate
Owning properties can provide fabulous returns when you sell them off at good profit margins and plough the benefits back into business. For instance, if you invest in a property and sell it off after a couple of years at a good profit margin and use the funds to buy another property, and so on, it will build up to a sizeable chunk of money.
If buying properties isn’t feasible, you can always rent out to make a regular monthly income. It doesn’t require much legwork and the scope for growth is vast.
You can participate in Bank FDs to get regular interest, mutual funds and stock markets and holding it for longer period will get you good return if market performs well.
3. Online Business
Unlike a traditional brick and mortar businesses, an online business doesn’t require huge overheads, building up inventory, or the hefty expense of paying for a rental space. You have the freedom to choose when and how you want to work and you can work from anywhere. You can reach a wider market, while accepting payments via merchants is also convenient.
4. Writing Books
As a writer, you will have a great deal of freedom regarding when and where you work. If your books sell well and you gain a large readership, a career as a writer could give you a lucrative income. Moreover, bestsellers guarantee you get royalties for a lifetime!
5. Network Marketing (MLM)
The network marketing business model is based on residual income, so you do the work one time have the potential to earn ongoing income from it. Startup costs are really low and it can potentially grow into a six-figure a year business when you put the work into it. Your schedule is flexible so you can schedule hours accordingly.
6. Life Insurance
The opportunity to earn as an life insurance advisor is endless, especially when it comes to passive income. While you get to pocket a commission for every policy, it doesn’t stop after the first year. You will keep earning till the policy is effective, even if the commission percentage drops slightly. When the policy gets renewed, you get a renewal commission as well. People need protection even in hard times, a career in insurance offers the advantages of job stability and favorable prospects.
A career in the life insurance sector opens up a plethora of exciting opportunities for you to earn a lucrative income. As a life insurance advisor, you get to polish a lot of skills that allow you to earn well for years to come, even ensuring that you don’t have to work actively after selling a certain number of policies as the commissions will be significant. Want to learn more about becoming a life insurance advisor?
Definition From Wikipedia
Financial independence is a state in which an individual or household has sufficient wealth to live on without having to depend on income from some form of employment. Financially independent people have assets that generate income that is at least equal to their expenses
Passive income is income resulting from cash flow received on a regular basis, requiring minimal to no effort by the recipient to maintain it.