The importance of having passive income
Noel Huang
Principal Consultant | Intellipro Group SEA - Recruitment & Staffing | Managed Services | BPO Services
3 days ago, one of my prospects informed me that her husband, an Aviation Engineer, had just lost his job. As a result, they've decided to put the investment plan on hold till there's more certainty in their circumstance, and I empathise with that.
Incidentally, we discussed her plans to retire at 55 and create a passive income stream over the next 15 years.
In short, passive income creates financial stability, security, and freedom in your life. Sure, Padding your savings account is nice and all. But why should you bother with a passive income in the first place?
If the pandemic-that-shall-not-be-named taught us anything, it was that most of us were incredibly unprepared. An OCBC survey in November 2020 reported that 63% of people have yet to plan for their retirement, and while we're a great lot of savers, only 28% have an alternative source of income.
Most of us didn’t anticipate a global pandemic to happen, and many of us hoped that this pandemic would be a thing of the past by now. Unfortunately, one and a half years later, we're seeing a stronger variant and new waves that put pressure on economies opening up and the livelihood of those that depend on it. Having a passive income could provide that much needed financial safety net against future uncertainties.
It reduces your stress, anxiety and fear of the future
Aside from the pandemic, financial stability allows you to weather any storm. So, if you do lose an income stream or need to handle an emergency, you’re covered. You know that you still have cash flowing in.
It provides a platform for financial stability and growth
That said, a passive income is when you have an income that maintains itself. Just remember that you need to put some effort upfront. But, after you do, you can make money without being actively involved. With each new passive income stream, your revenue eventually far surpasses your expenses, and you ultimately attain true financial freedom.
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No matter how you look at it, the importance of passive income is paramount. Many people discount it because they either don’t understand it or think that having a passive income that exceeds your expenses isn’t an attainable goal. Well, whatever the mind believes, the mind can achieve. That’s as true for passive income as it is for anything else in life. Believe it wholeheartedly with your spirit, and you can accomplish it as long as you don’t give up.
Drop me a message if you'd like to find out more about attaining a passive income.
#financialplanning #dividendinvesting #passiveincome #pathtofinancialindependence #FIREdUP
Photo: Aerial view of glacier river in Iceland
Credit: National Geographics Society
Elevate Your Career & Life Without Anxiety, Fear or Stress ???? International Awards-Winning Coach | Executive Coach | Life Coach |
3 年We can see it as a chicken and egg thing, which one comes first? Often I hear people saying, "I don't have the money to invest in myself." And these are the people who feel stuck in their life, particularly in their financial aspect. But how can one increase their earning capacity when they don't change the way they think and behave? ??