As you probably already know, I am PASSIONATE about building passive income, but I also have a soft spot for designer handbags.
Passive income is income that you earn while sleeping…it is your money working for you, rather than you working for money….and a key to being financially free and independent.
Examples of passive income include earning interest off your savings, receiving rent from investment properties or even dividends from shares. There are heaps of different types of passive income, but these are the most popular.
The more passive income you earn, the more freedom, time and choice you have in your life. Which are pretty valuable qualities that can help give you a lot more happiness!
I want to show you how building long term passive income really isn’t that hard when you put your mind to it and it all starts with your first dollar being put away for your financial future.
So we have an exciting challenge called The $1,000 Project where I show you how easy it is to create savings by manifesting and creating money in my everyday life which doesn’t really involve me going without any fun or luxuries.
Each time I save money, make money or find money in my life, I will be putting it into a separate saving account and the moment there is $1,000, I am going to invest it by buying long term passive income sources, which match my long term financial goals for income and capital growth.
As the income builds up, with continuously adding to the portfolio with more $1,000 parcels and reinvesting the income for compounding growth opportunities, my goal for the challenge is that the share portfolio can pay for a designer handbag by July 2016.
You can follow along with this challenge and if you aren’t ready for investing, you can either use your $1,000 parcels for paying down debt or even building savings.
For me, as I am ready to build my passive income, my preferred investment is Industrial Australian shares, which have a long term history of paying dividends.
Also, I will keep a diary how I saved the money here and on my YouTube videos and then show you where I have invested the money.
Now buying shares is definitely not for everyone, so I definitely do not recommend this to you, before seeking professional financial advice. However for me and my financial goals, I understand the risks involved and am making educated decisions, which suits me perfectly.
In the meantime, I would love it if you could keep me posted as to how you are saving your $1,000 parcels, and every time you are doing something that helps build your $1,000, Make sure you take a photo on your Instagram account and hashtag #the1000project – I will keep watching out for you and we can all share ideas as to how we are building our long term passive income sources!
You can also watch the video here, explaining #the1000project
Here are some ideas that people are using to create their parcels of $1,000:
- Gumtree/Craig’s List
- Extra work – weekends or after hours
- Market Research
- House sitting and looking after pets
- Dog walking
- Garage sales
- Pay rises
- Tax refunds
- Small business
- Asking for cash instead of birthday presents