How to Retire Early by Building Passive Income
Discover what you’re good at., Set a financial goal., Make a commitment.
Step-by-Step Guide
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Step 1: Discover what you’re good at.
Reflect on your strengths.
Some people are good at investing, while others may be intimidated by the market or afraid of the risks.
Other people are talented artists or writers.
Still others possess a skill or knowledge for which people would be willing to pay.
Think about how you can combine your interests and skills to make money.For example, a writer can sell books, a musician can sell songs and a finance buff may be able to clean up in the market.
Don’t be afraid to try a combination of things.
You don’t have to stick to one area of expertise.
For example, you might earn some income selling e-books, and then turn around and invest some of those earnings. -
Step 2: Set a financial goal.
Determine the income level at which you want to live.
Think about where you want to live, what living expenses you will have and how much it will cost to live a lifestyle that will make you happy.
This will tell you how much money you need to be earning per year in passive income.
Depending on that nature of your passive income revenue stream, you may need to work a certain number of hours per week.For example, you may decide that you need to earn $200,000 per year in residual income to be able to retire and live the way you want.
If you are writing and investing to earn that income, you may need to work a few hours each day to maintain your revenue stream. , Building reliable streams of residual income requires discipline and commitment.
You need to control spending and save as much money as possible to have a nest egg to get you started.
Also, you have to promise yourself that you will not spend from your savings.
Investing as much of your savings as possible and making it harder to liquidate will help you with this.
Finally, you must devote time every day, more in the beginning than in later years, to keeping your income stream viable. -
Step 3: Make a commitment.
Detailed Guide
Reflect on your strengths.
Some people are good at investing, while others may be intimidated by the market or afraid of the risks.
Other people are talented artists or writers.
Still others possess a skill or knowledge for which people would be willing to pay.
Think about how you can combine your interests and skills to make money.For example, a writer can sell books, a musician can sell songs and a finance buff may be able to clean up in the market.
Don’t be afraid to try a combination of things.
You don’t have to stick to one area of expertise.
For example, you might earn some income selling e-books, and then turn around and invest some of those earnings.
Determine the income level at which you want to live.
Think about where you want to live, what living expenses you will have and how much it will cost to live a lifestyle that will make you happy.
This will tell you how much money you need to be earning per year in passive income.
Depending on that nature of your passive income revenue stream, you may need to work a certain number of hours per week.For example, you may decide that you need to earn $200,000 per year in residual income to be able to retire and live the way you want.
If you are writing and investing to earn that income, you may need to work a few hours each day to maintain your revenue stream. , Building reliable streams of residual income requires discipline and commitment.
You need to control spending and save as much money as possible to have a nest egg to get you started.
Also, you have to promise yourself that you will not spend from your savings.
Investing as much of your savings as possible and making it harder to liquidate will help you with this.
Finally, you must devote time every day, more in the beginning than in later years, to keeping your income stream viable.
About the Author
Matthew Fox
A passionate writer with expertise in crafts topics. Loves sharing practical knowledge.
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