This post is a bit of dummy spit from me. Not a nice start, I apologise for that. I get very annoyed by the main stream financial advice available in personal finances magazine or even on TV. The main advice you get from the experts is to cur your expenses,save your money, put it into your superannuation, or 401K if you are in the USA and have an emergency fund.
Whilst they are not wrong I believe they are missing the point. Think about the following scenario:
A family of 4 with two children children and both working parents. They earn the average family income of about $80 000. They are trying to save as much as possible to go on holidays, to build an emergency fund or to save for the children's college fund. Nevertheless with the increase in the cost of living they are finding hard to find ways to save more.
As the interest rates keep on going up, in Australia anyway, they continually struggle to pay for all the bills on time and afford the mortgage payment and they are doing all that they can to keep their house.
As mentioned above thy have already cur their expenses as much as possible. So what now?
Their income barely meets their expenses and they have already cut as many expenses as they can. So the advice they get from the main stream media is not achievable. One of the parents can find a weekend job but the pay will not make much difference.
In this case they need to make more money, Not through extra employment or short term solutions. they need a long term solution to increase their income so they can achieve their financial dreams.
The answer is in passive income. Passive income is income earned without someone having to work for it. Once the passive income stream is setup all you need to do is sit back and watch the money come in.
It is not very easy to acquire passive income, that is why not many people have passive income sources. Nevertheless with the right education, time and persistence, anyone can have a few sources of passive income that bring in a few hundred dollars, or even thousands every month.
The first step towards having passive income is learning about it. The following articles will give you an introduction of what passive income is and how to setup different streams of passive income: