Is time equal money?
When you are getting paid by the hour, the expression “time is money” never feels more true. Long term, though, trading your time for money isn’t a sustainable goal. Sure, you can work more hours to earn more. However, working 60 or 70 hours a day will eventually cause you to suffer from burn out.
Get financial independence
To get real financial independence, you need to start thinking in terms of finding something besides your time to trade for money.
Working towards assets that can pay off over the long run—like writing a book, owning a rental property or just having good investments—is what will sustain you.
Having a passive income
There is a big misconception about the subject of passive income. Many perceive it as having lots of money, showing off their fancy cars and fancy watches, and sipping margaritas by the beach.
The truth is working towards having a passive income requires delay gratification. You have to work hard, invest safely, and make tons of sacrifices.
Passive income isn’t a lottery or a get-rich-quick scheme. You’ll have to ramp up your workload now so you can ramp down later.
The point of having a passive income is like working a second job. Except instead of trading your time, you are trading your hard-earned money. That is how the phrase “let your money work for you” applies.
The point of having a passive income also acts as insurance when in time of dire need. When you are unable to work, the passive income that you have worked hard for is able to provide for you.
Everyone should strive to build their passive income equivalent to their expenses. The easiest way to do that is to reduce your expenses. Once you reduce your expenses, the goalpost is lowered. When the goal becomes realistic and simpler, one can take more cautionary steps in their investment choices.
Passive income is for those who are willing to delay their impulses first, make sacrifices and willing to learn.
Plant your seeds today, so you can harvest freedom for the rest of your life.