History buffs often say that history has a way of repeating itself. Lessons from the past can become blueprints for future success. While we can’t predict the future or guarantee outcomes, we can build a strategy to create a sustainable Retirement outcome that will enable families to live the life they dream of and provide for their next generation.
Every retirement journey is unique. Because not all investors are alike—and not all paths to retirement are the same but the methodology for building a strategy is the same.
It will always begin with defining goals – from my experience the process of defining goals can be emotional, mostly in life we go from event to event, in our careers, bringing up our family caring for our loved ones, we do the best we can, hoping that withholding our values and just doing the best we can will lead us to a life of dignity and security.
But the reality is that this is just not enough, we need to plan, in short, passive income is important because it creates stability, security, and freedom in your financial life. Additionally, since passive income is not limited by your time and effort, it can have a positive, and significant, effect on your ability to build wealth and live the life you aspire to.
The first stage in the process of planning passive income is to ask ourselves the following questions.
What kind of life do you envision for yourself after you stop working or retire?
Defining the kind of life, you want to live is essential when preparing a plan. Accumulating wealth and passive income mean more sources of wealth to spend on the things that matter most to you.
Here are five additional questions to ask when thinking about your plan.
Do you plan to stay in your current home?
Housing accounts for about 35 percent of annual expenditures for average families. Some families relocate to an area with a lower cost of living, or higher quality of life, but that has its own challenges—including necessitating travel to visit friends and family.
Will you need extensive health care?
Even the healthiest person will have to contend with the rising costs of health care. Ensuring that you’ll have enough to live comfortably means planning and choosing a strategy that you feel confident in.
What kind of lifestyle do you envision?
From food to transportation to vacations to helping the kids, living expenses can add up. It’s always a good idea to plan so that there’s enough in your budget to treat yourself to the life you deserve.
How will you spend your leisure time?
After spending your whole life working, this is the time to enjoy the fruits of your labour. A good plan includes fun, whether that’s traveling the country in your camper or going on a family vacation studying or cruising the world.
What will you leave behind?
Most families strive to plan to leave something behind for the next generation, many people hope to leave a legacy. Your plan might also include designating beneficiaries of your estate.
Time is one of our most precious resources, which is why we need to use it as wisely as possible. Unlike money, we can’t earn back the time that’s already been spent – once it’s gone, it’s gone.
When you’re starting a business, your top priorities are likely profit and success, and part of that involves making the most of your time, using it in the right areas to grow your business in the most effective way, and creating the freedom you desire.
A passive income is something that most families aspire to achieve. It’s a regular form of income that requires little maintenance or effort, and most importantly, it’s not reliant on you inputting your time on a daily or hourly basis.
Creating passive income for families should be a priority, for it may be the difference between living the life you deserve and strive for and being dependent on your family and the state. Creating passive income will help you sleep better on your life journey.