In this post, I look at why I keep growing my passive income. Through thick and thin I’ve decided to keep on investing in income producing assets so that my income will continue to grow to the point where it will (eventually) cover my living expenses.
This year has not been kind to stock market investors and it looks like we’re headed for another economic downturn. At times like these most people are concerned about their job security, and for good reason. Day after day I read reports about companies laying off workers and restructuring. This has happened in the energy, mining, manufacturing and, now, the banking sector.
More and more in today’s economy I see the need for a major shift in people’s thinking about their lifestyles and their financial future. People now more than ever need to be moving towards a certain level of financial independence. Such a move would, at least partially, insulate us from all the risks associated with a weak economy and uncertain job prospects.
Short of opening our own businesses and becoming self-employed, I think the easiest way to gradually become financially self-sufficient is to buy assets that generate passive income. For the last 7 years that has been my approach and I’m now at the point where, at least this month, I’m on track for earning nearly $1,100 in dividend income and a few hundred bucks in rental income.
Today there’s no question that the lion’s share of my income comes from job, however, over time I’ve been able to consistently build up other sources of income by simply saving and investing a portion of each and every paycheque. This passive income is a nice cushion to have when we’re faced with uncertainty about the future.
I’ve managed to build up my passive income by investing regularly in dividend-paying stocks, low-cost index funds and, more recently, a small rental property.
What I’ve managed to achieve is not exactly rocket science. And I believe that anyone who has a desire to become financially independent and the focus and determination to see it through, can do it too.
In fact, while I’m extremely pleased with my results so far, I’m still a long way off from where I’d like to be so I will continue to build my income earning assets as quickly as I can.
Thanks for reading my post on why I keep growing my passive income.
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