“You can drink of a freedom that few ever taste.” – the Wealthy Gardener
Lesson 5-10 Reminder: Passive Income
Warren Buffett once said, “If you don’t find a way to make money while you sleep, you will work until you die.” It’s hard to argue that one.
The ultimate rewards of wealth are peace of mind and personal liberty.
“You become financially free,” said T. Harv Eker, “when your passive income exceeds your expenses.” Passive income is a river of gold.
I once listened to a real estate investor speak on a podcast. In his late forties, after his kids left the house, his wife demanded a divorce. They had an acrimonious settlement over their assets. Finally, they agreed that she would get his entire life savings and he would keep the rental units, which she never liked anyway—they were just headaches and hassles to her.
When later asked about this deal, which seemed to favor her side, the man chuckled knowingly, “Well, she may have gotten the golden eggs. But I got the geese.” With passive income, we have a perpetual flow of money.
“Residual income is passive income that comes in every month whether you show up or not,” said Steve Fischer. “It’s when you no longer get paid on your personal efforts alone . . . It’s one of the keys to financial freedom.”
Robert Kiyosaki said, “To obtain financial freedom, one must be either a business owner, an investor, or both, generating passive income, particularly on a monthly basis.”
When your investments pay you more than you can earn at your day job, and passive income exceeds your living expenses, you will then drink of a freedom that few ever taste.
Just know that every river starts by saving small amounts of money, and then making an investment. And then another. And then another. . .
. . .
