Invest $1 to Make $1.50 - Passive Income Equals Life Style
By Martin Thomas
The nicest possible way to make money is to have a passive income. Indeed if you think about it, that is the ultimate goal of wealth creation. The whole name of the game is to invest as well as you can so that in the end you are making an income without lifting a finger for that income.
There are many forms of passive income and even going on welfare can be seen as a passive income in some respect. However, the big difference between wealth creation and going on welfare is life style. That is the whole point of wealth creation. To invest so your income pays for a high level life style without the working every day. It is what being rich really means. Your life style on welfare would be appealingly low. There will be no trips to the Caribbean or nice cars to drive or anything like that.
So life style is why we want to be rich. The way to get that style is a passive income. If you look at the safest investment of them all, a bank deposit can give you a return of 6% which is quite low, but putting your money in the bank represents little risk. To deposit $1000 into a bank account, you may get a return of $60 after a whole year waiting. Can you live on $2 per week? Quite likely, no.
But what if you had $2 million in your account? The 6% would give you a passive return of $120,000 per year, can you live on over $2000 per week? I'm sure you could live very well on that type of income.
But what if you don't have $2 million dollars? Is there ways to create a passive income without having $2 million dollars? Sure. There are many ways to make $2 thousand per week without having $2 million dollars and the income is driven passively. In other words, you do the work once and the income continues to come for months, years and even decades to come.
What I am trying to do is get you to think laterally. If $2 million dollars is out of your reach, if you have no idea how you would make $2 million dollars you need not worry. Because the point of wealth is not to have $2 million dollars because even if you did have that money, you couldn't spend it, or you would lose your income. So having the $2 million dollars is not important in the first place. What is important is a passive income. Lifestyle, without having to work in a job every day.
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