Passive vs. Active Income
Active income is the mode of making money that most of us are accustomed to. You go to work from 9-5 every day, and you receive a paycheck. More often than not, that paycheck is allocated to bills, and there isn’t much left over. In this scenario, you work for your money. If you stop working, you stop getting paid.
That’s not to say there’s anything wrong with having a job, but the idea that a paycheck will build wealth does us no favors. I don’t know of many professions where a paycheck will allow you to build legacy wealth. Perhaps there are a few, but we’re accustomed to hearing horror stories about professional athletes squandering away all of their earnings.
Achieving true financial freedom requires being intentional about finances. In order to earn a passive income, you must manage your money correctly and purchase cash-flowing assets.
Passive income is a better way to make money. In this instance, you're not working for your money; your money works for you. It's about having checks deposited into your bank account as you live your life the way you want.
For the hundreds of real estate investors we work with, passive income allows them the ability to spend their time intentionally, whether that means going on more vacations, or spending time with their families. It's true freedom, and it's within your reach. I'm so passionate about buy and hold real estate, and I want to share this way of life with you.
Ready to begin? Download the Freedom Cheat Sheet. It's a free PDF designed to help you determine how many rental properties you need to achieve financial freedom.