Passive Income Nirvana

Disclosure: I make no money from any of the following links. This is purely my recommendation for anyone looking for a simple, balanced, DIY approach to long term investing. 

What is Passive Income?

Passive income is generated from investments in which you are not involved.  When you wake up and go to work in the morning you are creating an active income stream. The goal is to take your active earnings and invest in order to create future passive income earnings.

Your active earning power will help to drive your future passive income earnings. Everyone has  different skills that we use to earn active income. The issue is our society only focuses on one piece of the equation EARN MORE!

What happens after we earn the cash? Where do you invest it? How do you exit the hamster wheel?

Take on debt in order to earn. –> Earn to pay off debt. –> Pay off debt. = Back to $0

Once you are back to zero you most likely have something else to pay for. (House, car, kids education?)

How do you get ahead in this situation?

The reality is it takes time and perseverance to build a passive investing portfolio. The journey will be worth it if you construct a plan that works for you and follow your financial independence (FI) dream.

Why be a Passive Investor? 
  1. Regain control of the most valuable resource available…TIME.
  2. Money is necessary for survival, but living life to the fullest should be everyone’s true goal.
  3. One day we will physically no longer be able to work.
  4. Lowers your stress by not actively engaging in your investments.
  5. You can focus on your family and friends.
The Passive Investor Golden Triangle

This is no get rich quick scheme. The following resources paired together will make you a millionaire if you stay invested and focused.

The simplicity of this path is the beauty.

“Less is more”. 

This is a fantastic hands off approach that everyone should follow for a piece of their wealth building. For those that are looking for a hands off strategy with a great success rate this is your one stop shop.

Vanguard Funds

If you have not heard of Vanguard you are missing out. Check out the history of Vanguard here. Founder John C. Bogle has done more for the common investor in this century then most people realize.

Bogleheads.org

Bogleheads is going to be your support group on your financial journey. There is a wealth of information available here and a fantastic group of people sharing their knowledge. Everyone has doubts when they are on their investing journey and this is your free investing therapist!

The Little Book of Common Sense Investing; John C. Bogle
Other Tips
  1. Write down your goals with a clear path of how to attain them.
  2. Never stop learning.
  3. Tune out the noise on your investing journey.
  4. Strike a balance for living for today and building your passive income streams.
  5. Practice gratitude for everything you have in your life.
  6. Give back to others.

Creating a passive income stream will change your life. Stress will melt away as you make progress and your focus will shift to what matters the most to you in life.

Enjoy the journey and share your experiences with me on the site. Best of luck!

“Someone is sitting in the shade today because someone planted a tree a long time ago.” 

-Warren Buffett