We learned about the two Financial Mantras - Pay Yourself First and Pay Off Your Debts in my previous posts as our starting steps for learning 9 Financial Mantras that will change your life financially. Starting with our Financial Mantra #3 - Build Passive Income, we will discuss about the Passive Income and How to Build Passive Income to grow rich and wealthy. Will also introduce you with the one of the finest online board game that teaches us how to build passive income.
Build Passive Income
Building Passive income is a quiet easy task and very interesting to learn, once you learn the basic of building passive income after that you will love to build it and reap off its benefits all your life.
So, let's start with few questions that must be in your mind right now...
What exactly Passive Income Is?
Passive Income is basically that part of income which doesn't need your presence or hard work, it's all the game of your smart work and the reading of numbers by your mind.
Let me repeat the same example I discussed in our Financial Mantra #2 - Pay off your Debts explaining about the Good Debt.
As, you learned that Good Debt is that debt for which someone else pay for you and the example for Good Debt below I have excerpted the example from the previous post...
So, let's start with few questions that must be in your mind right now...
What exactly Passive Income Is?Passive Income is basically that part of income which doesn't need your presence or hard work, it's all the game of your smart work and the reading of numbers by your mind.
Let me repeat the same example I discussed in our Financial Mantra #2 - Pay off your Debts explaining about the Good Debt.
As, you learned that Good Debt is that debt for which someone else pay for you and the example for Good Debt below I have excerpted the example from the previous post...
Y was looking for some real estate properties to buy, he went near some university college and found a great building with 8 apartments - the price for the building was Rs. 50 Lakhs he was offered Rs. 5 lakhs as down payment and Rs. 45 lakh loan on the building by his bank.
He immediately took that loan and bought that building,
Now it's up to him that he wants to make this Rs. 45 Lakh of Debt amount Good or Bad for him?
As, I said Good Debts is for which someone else pay for you...so in this case Y put an advertisement in the neighborhood of the building that apartments available for rent at Rs. 5000 per month.
Many University students ran after the advertisement as they were looking for places to live in, immediately he got all the 8 apartments on rent and that building was generating Rs, 40,000 of monthly cash flow for him. His monthly EMI for the 45 Lakh of debt was Rs. 35,000 for 15 years.
So, his monthly EMI was paid by the tenants and he was still left with Rs. 5000 every month. In this way the Debt amount of Rs. 45 Lakh in this case was a Good Debt for Y.
In the above example Y was still left with Rs. 5000 every month after the EMI's and other Expenses of the Building, so that income of Rs. 5000 was getting into his pocket without doing any of the extra hard work or needed his physical presence so that part of income is his passive income.
Passive Income doesn't require you and your hard work and it's still yours.
So, How To Build Passive Income to attain Financial Freedom and Grow Rich?
Nice question, and the answer is simple than you ever thought - Just Buy Income Generating Assets that don't require your hard work.
Yes, you heard it right Just BUY Income generating assets like, Real Estate and Businesses that don't require you and still provides you the cash flow every month in your income side.
Yes, it's hard to find such real estate and businesses but not impossible all you need to do is keep an eye on the deals and opportunities that economy and the world will bring to you, make sure you grab them wisely. That's it!
Start Building your Passive Income and Get out of the rat race to grow rich and wealthy.
Passive Income doesn't require you and your hard work and it's still yours.
So, How To Build Passive Income to attain Financial Freedom and Grow Rich?
Nice question, and the answer is simple than you ever thought - Just Buy Income Generating Assets that don't require your hard work.
Yes, you heard it right Just BUY Income generating assets like, Real Estate and Businesses that don't require you and still provides you the cash flow every month in your income side.
Yes, it's hard to find such real estate and businesses but not impossible all you need to do is keep an eye on the deals and opportunities that economy and the world will bring to you, make sure you grab them wisely. That's it!
Start Building your Passive Income and Get out of the rat race to grow rich and wealthy.
The CashFlow Game
To help you understand How to Build Passive Income more clearly let me introduce you with one of the finest online board game developed by Robert T. Kiyosaki that teaches how to build passive income and get out of the rat race.
Just Buy Deals with the Positive Cash Flow and build your passive income more than your monthly expenses.
You need to signup first on richdad.com to further login and play the game.
Bottom Line
Just know What Passive Income is and Start Building it as much you can, for more insights on how building passive income can take you out of the rat race and help you grow rich and wealthy in real life then start playing Cashflow Game Right Now!
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