Just like Robert Kiyosaki, the author of the bestseller, Rich Dad, Poor Dad, I, too was fond of playing monopoly during my adult years. It is truly an outstanding game. It teaches you how the real world works and yes, how to become rich.
If you remember, monopoly is a board game on property investment. The idea of the game is to accumulate properties and bankrupt your opponents. The last guy remaining is the winner.
What makes it such an excellent game is that it reflects so much of real life. In order to buy valuable properties, you have to plan your finances properly. Incidentally, because of their locations, some properties on the board are more valuable than others. And then, you got to make deals and cooperate with the other players to get ahead. And from time to time, you may receive rewards or you can also get hit by taxes. To win, you do not have to own all the properties on the board but just enough to bankrupt your opponents. In other words, it's just like real life. If you remember, each player collects $200 every time he passes Go. But, of course, it would be difficult for a player to win the game if he depends solely on the $200. He must accumulate properties, selected ones of course, and start building houses on the properties so he can start charging higher rentals. If he is smart enough, he uses the rental money to build a hotel on the same spot. And later on, he builds a chain of hotels so the rentals will be even higher. And it is the rentals that squeeze his opponents into bankruptcy.
Can you see how this is reflected in real life? The $200 is your salary. You need it in the beginning to build a base. You must save this money and later on invest it in selected properties. Collect more of the $200 and more rentals, so you then build houses on the properties. Once you have the houses up, the rental collected will be significantly higher than the $200. Then there’ll come a time when you are making so much money from the rental collection that you do not even need the $200 anymore. In fact, at this stage of the game, you will be better off spending time in jail, just collecting the income from your rental. Meanwhile, your opponents are still, circling around the board trying to collect the $200 so that they will not go bankrupt.
In real life, you need to invest in assets that can provide you with a source of passive income. Accumulate enough assets and soon they will churn out more money than your salary. And, pretty soon, you may not even need your salary. Just like monopoly, the income from your assets is enough to pay off all your expenses. And once that point is reached, you have reached financial independence. Of course, you could still work if you want to. But now, you have a choice. Wouldn’t it be simply out of this world to have that choice?
In summary, passive income enables you to achieve financial freedom at a much faster rate. It doesn’t wear out, is not limited by time, does not require our presence (not all the time) and in most cases, does not require our input. In short, not much work is required. And this’s the best type of income anyone can have.
That’s the reason why everybody is talking and chasing the passive income route. Just look at some of the benefits:
a. One Time Work
I must admit that I like to work. It gives me great pleasure to do the things they call work. But, I must also admit that given a choice of doing a job that pays once or doing another job that pays, again and again, I choose the latter. And you will choose the same as well.
b. A Loyal Slave
The moment you create a passive income stream, you have created a loyal and dutiful slave that will toil for you non-stop, taking no rest, no breaks, and no medical leave. It doesn’t complain, doesn’t play politics, doesn’t picket, and doesn’t take you to court. All it wants to do is work for you!
c. Unlimited
Unlike linear income which comes with a built-in ceiling, there is no limit to passive income. As long as there are buyers, there will be income coming in. And passive income is not constrained by time and effort because you now have more than 24 hours a day!
d. Give You More Free Time
Because you do not have to do additional work, passive income gives you a precious commodity — free time. You can do whatever you want to do in that free time, even if it means doing nothing. Or you can invest it to create more passive income streams.
e. Can Be Passed On To Beneficiaries
Unlike linear income, most passive incomes can be passed on to beneficiaries. One example is royalty. The estate of many singers, to name just three, Elvis Presley, Jimi Hendrix, and Jim Morrisons of The Doors, are still reaping in royalties today, long after they sang their swansong. So are the estates of long departed writers. Dale Carnegie’s monumental book, How To Win Friends and Influence People is still a top seller all over the world.
So, friends, wait no more. Put on your thinking cap and start the action for a passive income stream and enjoy the ride.
That’s all for now, friends. See you all in my next article.