Millennials aspiration towards Passive Income
By The Headlines, December 26, 2022 | 12:46 AM
Millennials are working towards earning more passive income and living the life they deserve.
There is a really good reason why millennials are finding passive income so appealing. And it isn’t all about making more money. According to a recent article, many millennial workers are trying to put enough away by the time they’re fifty so they can retire and enjoy the rest of their lives without having to work anymore.
Early retirement is different nowadays because of how much the previous generations had to save. You need to make sure it's the right decision for you and only then can you enjoy your later years. Take into account factors like where in the country you live or if you have enough money saved up.
Reaching the goal of early retirement means really committing to saving now. In the article, a CFP with Allied Financial Advisors said it would require saving between 50% to 60% of one's salary in order to stay on track.
The article discusses the different types of passive income that millennials are pursuing to reach their financial independence goals. For example, one type of passive income is from the use of AI writers to generate content for online publications.
There are many differences between passive income and active income.
Passive income is a type of income that one earns without much effort. This type of income is different from active, as it takes more effort to achieve an active income.
Active income can require commitment, such as through your full-time salaried (or hourly) job or a side gig like freelance writing or tutoring. It can also come in the form of selling rental properties and generating passive income. Passive income doesn't require much maintenance. You might sell stock photos online or participate in affiliate marketing, for example.
Also Read: 20 Simple Ways To Save Money Fast
The rising popularity of passive income streams among Millennials
Millennials are discovering a number of ways to earn passive income. If you're new to passive income, try exploring some of these streams:
Sell online courses.
Starting a blog.
Writing a book or publication.
Selling stock photos online
Investing in real estate property rentals
Writing a book or publishing an eBook
Participating in affiliate marketing
Renting out recreational equipment, such as swimming pools, house, equipment.
Renting out storage space
Know what isn’t considered Passive Income?
Setting the right goals and finding a process to achieve them can help first-time, full-time workers figure out what to invest their time and skills into.
Tax-deductible expenses include business expenses the taxpayer materially participated in; trade or business activities, including operating an oil or gas well and renting a dwelling unit that was used for personal purposes for more than 14 days. Other ineligible activities include buying goods from yourself, and property professionals who materially participate in rent
Why Should You Aspire To Make Passive Income?
It’s not easy to become financially independent but it is possible with a few strategies in place. Multiple income sources, like passive income, can be powerful tools. This type of overall strategy should be part of your plan when reaching financial freedom.
Ideally, you want a passive income stream to be able to provide some return on investment without much risk. Analyze the options where you feel most confident and understand your scope of expertise. The truth is, you don't need to rush into doing every type of passive income stream at once. There isn't a one size fits all approach to social media, figure out what best suits you and get started.
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