INVESTMENT STRATEGIES
Passive Income
The Holy Grail of Investment
BY GERT VAN STADEN
What would you be doing today if your income simply arrived in your account each month , not because you are working day in and day out , but because you invested intelligently in assets that deliver a growing income , month after month , year after year , for as long as you live and beyond ?
Passive income : income received regularly , with little effort required to maintain it . Closely related to the concept of “ unearned income ”.
Perhaps you would be sitting on the beach , sipping mojitos , or travelling to exiting and exotic places . Perhaps you would be spending precious time with your loved ones , finishing a favourite project , developing a new skill or realising a long-held dream . There are , of course , no boundaries to what you can do and achieve when you are no longer chained to a job , working day in and day out , for enough earned income to make it through the month , year in and year out until - hopefully - you have saved up enough to receive a monthly pension .
The Holy Grail This is why passive income is the holy grail of investment . Passive income is income that arrives month after month , year in and year out , regardless of whether you are working or not . It is freedom .
Passive income is the holy grail of investment for another reason , too . Unlike earned income , the amount of passive - or unearned – income you can create is virtually limitless . There is a ceiling on the
amount of earned income you can receive , because earned income is limited by how much you can earn for your time and labour in a day . No matter how keen and able you are , you only have a limited amount of time and a limited amount of labour in each day , restricting your earning ability . Passive – or unearned – income does not depend on your time , labour , or even your abilities , and therefore there is no limit to how much passive income you can create .
How to create passive income Passive income : earnings derived from a rental property or limited partnership or another enterprise you are not actively involved in . - Investopedia
Investing in a rental property – or buy-to-let property investment - is the fastest and simplest way to create passive income . This is what our 2500 P3 Investment Group members are busy with : creating passive income streams through rental property . Implementing the 3-pronged approach of the P3 Investment System , encompassing preparation , pre-selected properties and partnership , our investors are streamlining and fast-tracking their path to passive income , so they can quit the rat race and build real wealth .
Don ’ t miss the next articles to find out how our members are creating passive income , or visit http :// p3propertyinvestments . co . za to sign up for our free 13-part course detailing the property investment system step-by-step .
RESOURCES
P3 Investment Group
26 JUNE 2016 SA Real Estate Investor www . reimag . co . za