Start working on your passive income now

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It takes planning to grow your passive income.

You are probably still working because you need to save money to retire comfortably in the future. You may even be planning to invest in something profitable which can bring you passive income.

In the world’s largest economy, American millennials are expected to be financially independent by age 22.

When your passive income grows tremendously, then you can stop working and go on vacation every other week.

Frankly, except for those of you who succeed in your entrepreneurial journey, most working professionals will not retire totally and enjoy vacations every other week. Not even every other month, unless it’s really something very affordable, like a trip to the local beach.

Relying fully on passive income is not realistic

Gary Vaynerchuk, the popular Belarusian-American entrepreneur, New York Times best selling author, speaker and internet personality, says that hating your work and resigning totally versus fully relying on passive income is not realistic.

His advise is to stop buying into the idea of passive income as it simply means that you do something extra, like invest in property and 10 years later, you have more options in terms of changing to a career you love instead of staying in a job you hate.

So, having some passive income does not mean that you can retire just like that. How many working professionals are there in Malaysia who can up and retire any time they want? Perhaps there are a select few, especially those with salaries of a few million per year.

If you have a salary of RM2 million a year and you save RM1 million a year, you will have saved RM10 million at the end of 10 years. If all your money is kept in the bank and you stop working, the interest you will earn on a monthly basis is RM33,333.00 (RM10 million x 4% interest divided by 12 months)

Stay the course and keep looking for passive income

That’s enough for you to retire comfortably but it may not be enough if you intend to keep holidaying overseas regularly, given the exchange rates.

The rest of you will have to keep looking for potential passive income and stay the course. As for retiring, you may not feel the need if you love what you are doing.

Depending on your current financial health, do take your family for a short break every few weeks. Its good to be grateful for everything you have instead of feeling sad over things you do not have as yet or may never possibly have.

Happy working towards that passive income dream.

This article first appeared in kopiandproperty.com