Sep 2, 2014

Passive income: what, why and how.

What is passive income?

 Passive income is an income received on a regular basis, with little effort required to maintain it. It is closely related to the concept of "unearned income", according Wikipedia. As examples of passive income, Wikipedia mentions:
  • Any type of property income
  • Earnings from a business that does not require direct involvement from the owner or merchant;
  • Rent from property;
  • Interest from a bank account
  • Royalties from publishing a book or from licensing a patent or other form of intellectual property, such as computer software product;
  • Earnings from internet advertisements on websites;
  • Dividend and interest income from owning securities, such as stocks and bonds, is usually referred to as portfolio income, which may or may not be considered a form of passive income. In the United States, portfolio income is considered a different type of income than passive income;
  • Pensions.
To me, passive income is closely related to additional income. Addition in a sense that it is not my main income generated by my main professional career. So I extend the definition a bit and make it broader with examples like, selling on Amazon and/or Ebay, trading domains and trading all kind of financial instruments, like trading Forex.

Why people search for generating passive income?

There can be many reasons why people are looking for ways to generate additional passive income. For example, you can experience that your primary source of income is not sufficient, or is entitled to a high degree of variability or its sustainability in the future is uncertain. You want to develop a secondary source. Or, you are unhappy with the current return on savings. The savings rate is currently so low. You want more active use your assets. You want to let your money work more for you.

In my case it involved a combination of several factors. Firstly, I have plenty of time, Because I retired at a very young age and I do not intend to develop further activities in my "old" field. I desire the flexibility with where and when I want to "work". Secondly, I have some spare money, that I want to let work more actively for me. And finally, I experience a certain degree of uncertainty regarding my financial future caused by the current economic developments.

How I started my search for passive income.

From the moment I felt the need to go looking for passive income, I started googling for public speakers: Robert Kiyosaki, T.Harv Eker, Tony Robbins and others. Indeed, I believe that if you are new to an area it is safer to mirror successful people than search your way by trial and error. Learn to copycat their methods till they become your own and tweak it afterwards, if necessary for your specific situation. During this search I came across the "National Achievers Congress."

The institute 'National Achievers Congress' lines up proven successful public speakers from all over the world to share Their personal strategies for success and show you how to get results in business now and in the future. The Congress's motto is that you can not rely on old methods to meet the new challenges of today. That you need to know what's cutting in business right now and what's going to work in the future. And that the best way to prepare yourself for tomorrow's business challenges is by learning the progressive success systems from those who are proving that they work at the very highest level.

The quickest way to become successful is to spend time with those that already are. The National Achievers Congress brings together some of the most prominent leaders in their field in the world today. Those who are dedicated to creating and sharing the most cutting-edge systems for success.

Well Their motto was exciting me and the best thing was That the "National Achievers Congress" was held in Amsterdam. So in my home country, the Netherlands, I could not resist or let it pass. The 28-29th of June, although the Netherlands had to play their first match at world championship soccer, I was visiting the congress.

No comments:

Post a Comment