The Holy Grail – Passive Income!!!

The entire theme of what I write about on a regular basis is How to Make Everyday a Sunday. I believe our financial goal in life is to make everyday of our lives a Sunday. Why Sunday? Because Sunday is the day when we can do anything we want - wake up late, spend the day with family and friends, eat out, go shopping or do the things we love.

So how can we do this? It’s very simple. We make enough money WITHOUT WORKING so that our monthly income exceeds our monthly expenses. Say what? How do you make money without working? The answer is Passive Income. Passive income is income that is generated from investments. It makes money for you if you are sleeping, on a holiday, or spending time with your family. See that's the beauty about money. When you don't spend money all it wants to do is make you more money!!! It is your best worker. It works 24 hours a day 7 days a week. It never gets tired and never complains.

How do you get this passive income? There are basically 3 ways - interest, rent and dividends. To start with it’s as simple as putting your money in a time deposit. Time deposits generate interest which is passive income. It’s not much but it’s a START! And it’s better than nothing. Then when you have more you move up to longer term bonds which give more interest. You can also start looking at properties which generate rent. Later you can invest in stocks or businesses which produce dividends.

Most people focus on getting a higher salary. They think that once they get a higher salary it will end all of their financial problems. WRONG! You can't work forever. Remember that. At some point in time you have to stop working. Now I want you to imagine life where you don't have a salary. For most people that's going to be a big problem. You have to build up your passive income now while you still get a salary.

Of course you can't accumulate investments if you don't save. The bottom line is still saving enough so you can generate enough money to invest. But my point here is start focusing on the passive income because its in the passive income where you will achieve financial freedom.

For more information on how I can help you email me on hoover@barongroup.com.ph.