What is Passive Income and is Residual Passive Income unrealistic?
Will Smith once said that “Nothing is unrealistic! Being realistic is the most commonly traveled road to mediocrity.” Because inventors and scientists like Edison, Wright Brothers were unrealistic, today we have bulbs and we can fly.
Imagine cash being deposited into your bank account, each and every month while not working. Isn’t this fantastic? This money is called Residual Passive Income. Passive income is created with very little work or active participation. Residual Passive Income is earning money continually without extra work! Is this realistic? Is it achievable? For most people, we earn money by looking for a job. We continue working until the age of retirement. That’s almost 40 years of our lifetime. We have an active role in earning the income. This income is Active Income.
Most people are used to earning active income and will strive to earn more through their careers in order to better their financial situations. We all desire more money and want financial freedom.In theory, financial freedom means you have to do NO work in order to receive income. So once you are financially free, you no longer have to worry about money. What does that look like to you?
Maybe you are like me and plan to do a lot of traveling, watch movies, high tea with friends, do volunteer work or you are into golfing and fishing or you simply just want to sleep in and rest all day long. If you just stay at your current job, the lifestyle which I just describe is unrealistic. Because, you will need to trade your time for money. You cannot be hands-off. With financial freedom, you can do whatever you want.
Financial freedom is achievable if you build your Passive Income. Start creating residual income and it can eventually turn into Passive Income. If you want financial freedom, you will need to make it your goal towards not having to work for your income. Of course, before the money starts rolling in you will probably have to put a lot of time, effort and money into the venture, whether it is a business or project. You’ll need a lot of patience and determination to see the passive income in the future. Instant gratification is not possible when it comes to residual passive income. It's what can happen after you put a lot of time, effort and sometimes money into a job to continue to get paid for the work months or years after it's done. It is a realistic goal and it is achievable. If you don’t build your dream, someone else will hire you to build theirs!