Living with just passive income as major source for expenses
These days I see a lot of videos on YouTube talking about living our life fully with just passive income alone. This is easily said but hard to practice. Financial needs are something that can never be predicted but they can be planned to some extent so that we can live with just passive income alone. Before we go further, we have to understand what living with just passive income alone means.
Passive income is the income that is generated with the assets we hold or from the savings we have. In India, most of the people do a 9 to 6 job and retire at 60 and get a lump sum amount. This lump sum amount is then deposited in the bank in fixed deposits and they get an interest out of it every month that helps them make a living until they die. This is the ideal thing that happens for most of the salaried people in India.
Secondary income source as a passive income
Apart from the regular salary we get, it is very important to have one or more passive income sources. The passive income generation can start with a very low amount and gradually increase to a better value in years. For example, someone can start with a 50k deposit in the bank in FD that would generate close to 200 or 300 Rs per month. This money can help them pay their mobile bills every month.
If we talk to many passive income experts or people who have attained their financial freedom, they will tell us the same thing. We start with a small amount that is targeted towards covering the expense of our living and gradually increase it to the point where it covers almost all our expenses. The power of compounding also plays a very important role here and that would add up the funds in years to come and when we are in middle age, we should have enough money to spend on travels and enjoying life. Saving more than what we need without having any fun in spending is also not good. We have to also be sensible about our spending and make sure it is spent on the right things.
Art of not touching our salary
The secondary passive income should be in such a way that we shouldn't have any need to touch our salary for our spending. After a few years of working, we would have had the opportunity to save enough. The savings should be in such a way that the returns we get from the savings should be self-sustaining to cover the expenses and this way all the money we earn will go for additional investments. I heard this from one of the big investors where he reached his financial independence with these thoughts.
Every money pushing a good amount of money into savings or diversified investments is very important to achive this. Imagine our passive income from different sources increases and becomes more than our salary. If we are sure that we can live with the passive income alone, then we should also think about quitting the job and enjoying life. I have this thought in mind. When my passive income is two times my salary and if I'm happy about the amount I'm getting, I guess that is when I will quit my job and retire. This is my current mindset.
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Living off of passive income sounds like a fairy tale bro. It is easier said than done.
It is not impossible but the groundwork for independence is too tiresome and requires long commitments and dedication.
I wish you had written this post 6years back. 😂😂😂
But like the saying goes, Der aaye Durrust aaye (Better late than never)
I started a small investment last year and I am ramping it up this year. I am on the way.
Lets hope that we can continue such dialogues when we retire.. ☮️❤️
Very true. Easier said than done. It needs a lot of discipline. As far as I know you, you are smart and forward looking person. So 10 years from now you would be writing literature about your success stories.
Bhai, wow!!!
With such support nothing is impossible. I never set a 10year goal before. But it long overdue, time to set some 10years goal.
What according to you is a good start for financial freedom?
I started by investing in PPF and RBI bonds which have a maturity period of 10-15 years. Recently stocks and mutual funds is the new favourite. Real estate investment every 7-8 years is also good.
Gold and silver investments in circular manner. Crypto you know already.
Basically diversify your investments and let them grow organically while you are earning actively.
Wah!! Bhai sahi hai.. PPF ke baare mein mujhe bhaut der se pata chala. Abhi afford nahi kar paa Raha. Mere liye to missed opportunity jaisa hain PPF.
Aapke pass Inka knowledge kahan se aaya. I mean school mein padhte nahi aur phir job par batate nahi.
Wisdom passed on by parents.
Superb...
I have to make sure that my son gets all the wisdom about money from early age. Don't want him to regret at later stages.
Thanks for sharing it.
I agree that it is easier said than done. But definitely not impossible. Hope we will have that luck to stay strong and keep going.
True that, luck is also an important factor we should be lucky enough to have time and to utilise it wisely.
Otherwise we would be ending up wasting the most important resource 'Time' ❤️☮️
Yay! 🤗
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As for me, I’ve got some passive incomes and what I’m planning on doing is to touch them after my retirement
I just hope I will be able to wait till after my retirement before touching the money
This is very nice. I'm going to also touch the income streams only after retirement.
Just as you say, generating passive income is very easy to say but making it happen is very difficult. Not touching the salary is something of great difficulty, but we all work to realize that dream of being able to live quietly from our passive income.
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Wow I like that. Living quietly with our passive income. I really want that.
it is indeed hard and almost found impossible to actually live off of passive income. Guaranteed, it is hard but it can still happen for ones who are really determined to.
It can take years but it is definitely not impossible.
Living with passive income can really be devastating and most of the time it can be dangerous. In fact most of the time that's why there is a need for us to keep increasing our source of income
If planned very well and if there are multiple sources of passive income, then it shouldn't be dangerous.
I always tell people that it is not really necessary to depend on one source of income. It is actually dangerous. One really need to spread the source of income