Of all the ways we could earn money, generating passive income is my absolute favorite, and becoming a passive entrepreneur is my ultimate dream. Why passive income you might ask? Well who doesn't want to earn money while doing nothing, well not absolutely nothing unless you consider going to the bank to withdraw your interest earnings too much of a hassle. The passive entrepreneur earns while watching a movie at G4, drinking coffee at starbucks, hanging out at Tiendesitas even while they are sleeping. These entrepreneurs have none of the stress thats related to having a job, and none of the headaches associated with owning a business. They make their money work for them. The typical portfolio of a passive entrepreneur includes a mix of time deposits, stocks, mutual funds, UITFs, rental from properties, bonds and government securities. While it is possible to earn all your passive income from one investment vehicle, it's better to diversify to minimize risk and to maximize your earning potential.
But earning enough from your passive income to cover all your expenses and your occasional wants is really difficult, unless one is born very rich or inherited a large sum of money. It takes millions of pesos and two or more of properties for one to be able to live off the interest and rent so becoming a passive entrepreneur takes time to build up, usually over the years and most only get to enjoy the fruits of their labors when they are already in their 50s, 60s or even 70s so start saving and building up your assets as early as possible. I am personally aiming to rely on passive for 100% of my expenses when I hit my 40s where I only need to work because I want to, not because I have to. I could never stress enough the importance of saving and investing you money at the earliest possible time. You don't need to have hundreds of thousands of pesos to start saving up for your passive income. Aside from the more traditional and well know time deposits, you could start investing in mutual funds and the stock market using an online broker like Philstocks for as little as five thousand pesos only. From then just keep of reinvesting your interest and watch your investments grow. There are also many strategies that can help increase our passive income earning potential which
will be discussed further in the days ahead.
2 comments:
Wow, that'd be nice! Who wouldn't want that? I'm a fledgling entrepreneur, and I want to start by buying a business (not necessarily a franchise). I've been looking, but I haven't really found anything worth my time. Any suggestions? thanks
Hello Jonas, I would suggest a business related to your interest or what you are currently into and expand on that idea, something you would like to see yourself doing years from now. Innovation is the key in today's business environment and competition is fierce with stores selling or offering the exact same service . You need to be constantly thinking of new ways to stay ahead or get ahead of the pack, so if you are not passionate about the business you are going into, then it's hard to come up with new ideas.
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