Millionaire maker, Robert G. Allen, states in his book "Multiple Streams of Income" that an individual bought to build up multiple streams of income to secure his / her future.
As a 21 years old student, I was surprised that none of the "adults" that have taught me in school, my teachers, has ever taught me that. "Multiple Stream of Income" (Passive income portfolio) is something that can be build by anyone who has an understanding how important money is.
This article is written to remind myself and other student why he / she bought to start building up their passive income portfolio as soon as possible so that he / she will be able to achieve financial freedom fast!
The following outlines are the important things that bought to be remembered after reading this article.
o Working for others does not create passive income.
o You do not need much money to grow your money tree.
o The moment you work, it's a whole different world.
o Becoming rich at 65 is too late to be enjoying life.
1. Working for others does not create passive income.
Passive income is an income that is being generated even as you sleep.
A lot of us grow up with a mindset of graduating with an honor and winning that right after we got the degree, we can search for a decent job and "we will take it from there". By working for others, we are not creating passive income. Our main goal, in order to be rich, is to create different type and sources of passive incomes in our lives.
Earning a fix income every month will not let you achieve financial freedom.
Most of us are still young, we have got a lot of time to build up our passive income portfolio. So start now!
2. You do no need much money to grow your money tree.
There are different types of ways to create a new stream of income in your life. Some ways required a lot of money to starts, most do not. I really advised all of you to read a book written by Robert G. Allen, "Multiple Streams of Income".
The book taught us different ways to build up our passive income portfolio.
A lot of people think that it takes a lot of money to make more money. And that discourages them to even try to make money. That is not true! If you do homework and surely do your research, you will find out that you can start earning an extra income by doing a lot of things.
For example, a 15 year old boy save enough enough money to buy a candy vending machine. He got it in E-bay for about $ 50. After getting permission from the owner, he positioned the vending machine in his favorite toy store. Each month he will spend about $ 10 buying sweets to put in the vending machine and each month he will be earning about $ 20 from many people who insert quarters in exchange for the candy.
This fifteen year old boy has already created one tiny stream of income.
He does not require that much money to start building his first tiny shoot of money tree. And that is just one of the examples. Amazon.com is well known for their affiliation program. Nowadays, there are many affiliation programs out there and these programs are not too expensive to start.
What I am trying to say is, if you are really seeking for a financial freedom, start now. There is no reason for you to delay your first step in achieving your dream.
3. The moment you work, it's a whole different world.
One thing that concerns me as a student is how little time I will have for myself as soon as I start working. Waking up at 7 AM every day and work till 5 PM is not something that I will enjoy. Do not get me wrong, nothing is wrong with working. In fact, I worked in an office position before. I enjoy the lessons I learn from working, but I do not enjoy working. After you are done with your job, you will not have much time to socialize with different type of people. You will be spending most of your time of the week with your co-worker. The time you can spend with your family, loved one, friends will be limited. We are student. While we are studying, why not take that extra one or two hours per day to build up our passive income portfolio so that we have an escape route from the rat race that is put before us?
4. Becoming rich at 65 is too late to enjoy life.
This goes without saying. If you are planning to be a millionaire, thinking that your pension plan will lead you there, think again. By the time you retire, you will be too old to enjoy your life. Driving a nice convertible car when you are sixty five does not seem to be so cool anymore, right? Even so, you will be missing out so many things that you could have done when you are young.
We are still young, so why not take this time to encourage one another how important it is for us to rely on our passive income rather than putting our bet in the "future salary".
There are many ways to be rich and as a young adult, we got the advantage in terms of time so use it wisely.
Working together with you towards financial freedom,
© '05 Henry Tanaka.
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