![]() There are plenty of countries where $2,000 a month buys a comfortable lifestyle - in some cases, even a luxurious one. With enough passive income, you sever the tether of your job, and thus the need to live near it. You may even take a job that lets you work remotely so you can drop the commute, work from home, or move wherever in the world you want to live. With passive income, however, you can walk out the door and pursue your passion, even if it doesn’t pay as well. We succumb to lifestyle inflation, then find that we can no longer afford to leave that high-stress job even when we grow to hate it. High-stress, high-income jobs tend to lock us with golden handcuffs. To Ditch Your High-Octane Job for Something You Love You can take your time and find the right job at your own speed. When you have other sources of income, however, you don’t feel nearly the same helplessness or desperation to find a replacement job immediately. Losing your only source of income makes you feel utterly helpless. It leaves you feeling not only rejected and broke, but it also lays bare your dependence on others for your livelihood. To Reduce Dependence on Your Jobīeing fired ranks among the worst experiences most of us face. The more passive income you earn from your investment portfolio, the better the quality of life you can lead in your later years. Yes, you’ll probably collect a (small) check for Social Security benefits each month after you retire, but that doesn’t mean you’ll be living large. I’ve known teachers who have retired at 30 because they built enough passive income from rental properties (more on that shortly). That simple concept serves as the foundation for the financial independence, retire early (FIRE) movement: You can retire young if you pump enough savings into income-producing investments. With enough passive income, you can cover your living expenses so working becomes optional. No one says you have to wait until 65 to retire. Who wouldn’t want to earn more money without having to go out and sweat for every cent?Ī few of the more common reasons why you might pursue passive income include: To Enjoy an Early Retirement People invest in income-producing assets for many reasons. Your investments can earn you income right now. Investing for passive income doesn’t just serve your long-term financial goals. ![]() Therein lies the beauty of passive income: It streams in without you having to lift a finger. While they’re playing with their kids, teeing off, or hiking in South America, they’re earning money. ![]() ![]() One of the most fundamental ways in which the wealthy think differently about money is that they don’t go out and work for their money. ![]()
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