Retiring by 40: Passive Income Development — Advantages
As you see in the middle link above, I covered some of the challenges to retiring in the next year. (Keep in mind of course that that just means being financially free enough to do so if I wanted to – not that I necessarily will.)
There are some advantages I have that others might not immediately, having chosen this course of action.
Financial intelligence is not generally taught in schools. The schooling system in most countries is a relic of the agrarian model, updated slightly for the factory model, and never updated since. There’s no real reason why the countries who provide education would want to update further; having students who graduate and who look for jobs instead of being entrepreneurs is an advantage for them. (It’s not necessarily a disadvantage to the students, though it’s not optimal.)
This should be what happens with good financial intelligence.
I’ve been lucky insofar as I’ve had access to a good corpus of financial intelligence over the course of my life, and have been dissatisfied enough with what I have learned to look for more. It started with “Rich Dad Poor Dad” by Robert Kiyosaki, and has continued from there with the likes of Stephen Key and Tim Ferriss.
I’m able to read fairly quickly, so when it comes to absorbing new ideas, I usually don’t have to take too much time to do it. This advantage allows me to keep abreast of current events as well as to learn from others past and present.
I’m not quite the Flash, but I can get through things fairly quickly.
I also type quickly, for whatever that’s worth. 😉
For me the best thing possible in the world is for each person to be free to make their own determinations in life. Financial freedom is the truest way in society (as it currently exists) to achieve this. This is highly motivating, and much more so now. The reason it’s more so now? I have a wife and child for whom I am responsible, and I’d like to be able to provide it for them as well.
It does flag from time to time, but the signpost is anchored in solid ground!
Already Working On It
This is perhaps my biggest advantage in attempting to create passive income. I’ve already started, and have one mature stream and a few smaller immature streams. I’m very close to creating another, which will hopefully be a success. Once I’m done with that one, I hope to create yet another, and that’s going to be a true side business. It won’t interfere with my regular job, but I do want to spend as much time on both, so with that and a newborn I won’t sleep much until I’m 41. 😉
My current passive income streams (only those that are close to or positive vs. cost):
A Rental Property – I own a house in New York that provides passive income most months. There are some months of course where some investments have to be made, but otherwise there’s a nice bit coming in from that.
Film Clips – I have a number of film clips on PondFive.com which make a bit of money here and there. That’s not too well developed in terms of its consistency of income, but it does provide a surprise every now and again which is nice.
A Book – This is in the final stages. The content is written and the book is edited. I’ve all but finished the cover, and have tested getting it into electronic form for book readers. I have to finish that process, and then make it available for Kindle, Nook, and iBook. I’ll announce it here once it’s ready.
I do have some other ideas for what will hopefully be good sources of income, and now they must just be put into action!