Passive Income Challenge Day 25.
Create Sources of Income that Don’t Require Your Time & Attention
When you start making money from your passive income efforts, don’t just spend that money. Instead, invest at least half of it in something else. You can invest in savings, outsourcing, or even your retirement to add to your passive income opportunities. Don’t forget to pay off your debt too.
Invest in Your Retirement
Retirement may seem very far off, but nothing is better than earning interest on money you already have. Especially after time due to the power of compounded interest. If you start today, by the time you want to retire you’ll be a lot better off than most people – even if you only invest a small amount.
Outsource Your Passive Income Generation
One way to spend some of the money coming in is to take yourself out of the equation other than as the manager and planner. Hire people to do the work. You just send them the outline of what you want with a deadline and budget and they do the rest. Your job changes to that of manager of your business, which will give you even that much more time.
Pay Down Debt
If you have any debt outside of your house payment and car payment, you should highly consider paying that debt down and eventually off, as soon as possible. This one thing will save you more money than almost any of the other things that you can do in terms of passive income generation. (If you are looking for ways to get out of debt, be sure to read my article on how to stop drowning in personal debt.)
The more ways you can reinvest the money you earn through your passive efforts that are also passive, the faster you’ll build your passive income. You may want to simply save some of the money each month to use for a big project idea that you have. Whatever you do, always think in terms of reinvesting
PASSIVE INCOME CHALLENGE DAY 25