I like to interact with likeminded people and about a month ago me and Mitch started chatting on Facebook. We shared some experiences with each other and realized that we...
Financial security and passive income can very well go hand in hand, the more sources of passive income you can create, the more financial security you will have.
Do you feel secure with the economic situation you are in today?
At this point the world economy is in untested territory with shrinking natural resources and a steady rising demand. With increasing central bank stimulation programs and negative interest rate policies. Here in the information age the old ideas don’t belong anymore, the ideas of going to school and getting a good education, the ideas of job security. Today, all these ideas belong in the history lessons. Today, technical development goes so quick that if you learn something today it might be old news within 6 months or a year. If you go to school to learn something for 5 years chances are that when you finally graduate, your new knowledge is already outdated. If you´ve had a job for many years, it might feel secure but is it really?
Do you remember the Photo Company Kodak?
I remember the rolls of photo films that my dad put in his camera when I was young, I also remember the onetime cameras. I even used one of those waterproof onetime cameras from Kodak in 2010, on a trip to Mexico. I think that was the last time I ever saw one.
Kodak was founded in the year 1888, once one of the biggest companies in the world. They employed over a hundred thousand people!
In 1975 they developed the first digital camera, then for some reason failed to make the real change towards the digital world years later. Just a couple of years ago they filed for bankruptcy, they were overdriven bye their own creation.
A personal story,
A couple of years ago someone very close to me became sick and after a couple of months of being permanently tired and even passing out a couple of times, he were diagnosed with cancer. During the first time he had to take some time off from work. He tried to work as much as he could, he worked at a small company and knew that if he didn’t do his job it would mean trouble for the company. After the medical treatments started he felt uplifted, the doctor said that the surgeries went good. Short there after he started working again and it felt good that the problems where over, now he could do his job properly again.
His luck was short-lived and at the first checkup meeting at the hospital they told him that the cancer was back again, this time it was tougher to take it. With all this comes psychological stress and finally he reached the point where he didn´t have any power at all to do his job. This of course made a problem for the company he worked for and to make a long story short, they did everything they could to be able to fire him, there’s no need for an employee that can´t do his job, right?
As it turns out, they couldn’t find anything in the records that really were worth mentioning. All the customers loved him and his colleagues as well, he was a good employee that did what he should do and were always service minded towards the customers. They dug some more and finally found something in the law that enabled them to fire him, a loophole.
So now he was sick and unemployed with no real backing. He went thru some more treatments at the same time he was trying to find a new job to go back to once he got well again. The problem was that no one want to employ someone like that, unsure of when and if he will start to work.
Finally the treatments were over and he got diagnosed cancer free. Now when he was well, employers could start to see him as an asset again and not to long there after he got a new job that he is still doing today.
And why do I tell you this?
There are no such thing as a 100% secure job these days. Even the giants can fall. This is not being negative, this is being realistic.
I’m not trying to scare you here, but if you think about it, there are really a lot of things that might not happen today but could happen some day and would change your economic situation a lot.
How do you think that person’s economic situation looked like during a turn like that?
Every month was a struggle, he had to borrow money from friends and family, sell some of his things and go down to the lowest of expenses possible. This pressure on top of all the other things and during a time where you are sick with cancer.
So why am I making you feel bad?
Sorry if that’s the case but I feel it´s very important to see the full picture here and realize that a little financial security is needed by everyone. If you have a passive income stream that at least can cover your basic living costs, a situation like that would be much easier to handle. I believe financial security is something for everyone.
So what is a passive income then?
A passive income is an income that comes on a regular basis with little effort required to maintain it. Passive incomes can come in many forms but it’s always required some kind of investment to get them, sometimes it´s about investing money and sometimes time, sometimes it´s a little bit of both. The most common example of how to get passive income might be to buy some apartment building with rented out apartments. The rent that comes in every month is passive income. The problem with this is that most people can’t really do that, you need a lot of money to start and you also need to be able to convince the bank to give you the loan. Another Well-known example would be to just buy stocks in big stable companies and get dividends every year, the dividends is passive income. One way to get passive income from investing time instead of money can be to build up a sales network where you get commissions on the sales made each month. This is also a very good way to develop and grow as a person since you probably have to make some changes in your attitude, behavior and people skills to make it work.
There are probably thousands of ways to make passive income. I´ve heard of everything from renting out bicycles or creating some kind of web product that people use, to putting advertising on the car that you drive to work with every day.
Everything is possible, only your imagination can stop you and every small new passive income stream will give you more security in life than the one before, even if it’s only 100€ or so.
I would suggest starting small, why not start with the goal of getting your first 100€ of passive income a month and then take it from there. Think, how can YOU get an extra income stream, do you have the tools for it in your home already?
If you know that you can make a passive income stream in some way, feel free to write a big fat YES! in the comments below.
Thanks for reading and if you like it, don’t be selfish.
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Passive income together