Would it not be great if you receive $50,000 or $100,000 a year in income without doing anything for it?
Passive income is income you get without working for it. It is not a salary from a full-time job or a freelance job where you are compensated for your services or income generated through selling products to others.
The only way you can generate passive income is through investing. One of the most popular ways of getting passive income historically was by putting your cash in deposits in the bank and just receiving interest payments. But there is a problem with this. Just look at the current interest rates below.
There are 0% interest rates from banks for Euros and Yen, 0.25% interest rates for USD and CAD, and 0.125% interest rates for GBP.
If you deposit 100,000 in any of these currencies you will receive the following passive income the coming 10 years:
In order to get $50,000 income, you need to deposit $20,000,0000 in your bank account, and $40,000,000 to get $100,000 income.
How many people can do that?
Not many people and that is why I prefer to look at other options. I will share a personal favorite fixed-income investment that I invest in and is giving me better interest rates on my savings than banks.
Below is the interest rate that I receive and an overview of the income table.
To get $50,000 income per year, I only have to invest $500,000, and to get $100,000 income per year that is only $1,000,000.
When I compare that against the bank. I save $19,500,000 to get $50,000 income and I save $39,000,000 to get $100,000 income.
Not a bad deal in my opinion.
I am a major advocate in building up passive income and building it up fast so that it can pay all the bills. Time is wasted on working just for income, unnecessary stress from work, fear of getting unemployed.
Being able to spend time on the things you truly care about. Is life not about this? We only live once, and we should live well and to the full capacity.
Putting money in the bank to get a passive income is a never-ending game, because who has $19,500,000 or $39,000,000? For the lucky people out there that manage to build this up, what will happen when they cut the interest rate to 0% as they did with the Euro and Yen? Even with 1 billion, you will still receive zero income then.
What is the point of trying to reach a goal when it is not achievable?
Build your path instead or even better follow a proven path towards building up a passive income that can set you free.
To know more about the fixed income investment I invest in that gives me 10% fixed interest a year, you can book a free consultation with me by scheduling a 15min meeting in my agenda through this link: https://calendly.com/simon-snelder/15min?month=2021-11