Why Your Financial Goal Should Be Not to Trade Time for Money
The adage “time is money” never seems more true than when you get paid by the hour. However, in the long run, exchanging your time for money is not a sustainable goal. To become truly financially independent, you need to start thinking about finding something other than your time to trade for money.
As the personal finance blog Afford Anything explains, this is the core concept that all passive income boils down to. Trading 40 hours a week for cash is great when you’re just starting out. When you turn 60 or 70 it will be much more difficult. Working on assets that can pay off in the long term – like writing a book, owning a rental property, or just a good investment – is what will keep you going:
Passive income creation involves swallowing a crude pill that the conformist majority despises: you will have to work ahead in exchange for self-sustaining wealth down the road. Increase the speed so you can slow down later. Load your workload ahead of time. Passive income is not a trifle. This is not a lottery or a get-rich-quick scheme. You will sow the seeds today to gain freedom for the rest of your life.
Of course, most of us have trained ourselves to believe that the only thing we can trade for money is our time. Nobody is going to pay you to stay at home, right? In addition, we often see that this is true over and over again. You have to work hard to make money, but it doesn’t have to be directly related to the number of hours per week you have set. Investing money now for long-term gain can do more for your wealth (and happiness!) Than a steady, endless 9 to 5 job.
“I want to earn passive income, but I don’t know where to start” – Part I | Treat yourself to anything through Rockstar Finance