Passive Income - Why you need it and how to create it

Passive Income - Why you need it and how to create it

It was once popular to work until the age of 65 and collect a company pension to compensate your social security. Today unless you work for the State, City, Federal Government, one of the original once regulated government utilities or an established collective bargaining union pensions are no more.

They have been replaced with what is called a 401K, which you contribute to from your payroll income and in most cases receive a partial company contribution. You can also contribute to an Individual Retirement Account (IRA), for the self employed this is called a SEP. This is all the result of the Federal Government cease of backing your money by gold and turning it into a currency backed by only the faith of the federal government. On top of this your social security which is your government forced retirement savings is at jeopardy of not being available as the baby boomers are reaching retirement age and cashing in. I am not a believer that the Federal Government will actually renege on payment of your Social Security. I could be wrong, but I am of the opinion that the federal government will be more inclined to simply print more money, thereby adding to the currency. The result will be inflation, the retired poor and the next extreme recession. Even those fortunate enough to still have a pension, will find it difficult to afford themselves a decent standard of living.

The solution is to establish a passive income, and one way to do it is through building a Network Marketing Business of your own part time, and growing it over time until you establish a residual income, a livable wage or become wealthy. I would suggest the efforts that lead to the latter of the three. There are other methods for passive income, the most known is possibly real estate, but that still requires a substantial investment and self learning of the business. Most investors who earn passive incomes from real estate already have wealth. It is very difficult to become a real estate mogul with low budget investments. The money producing properties are expensive. There is also the law of compound interest. Compounding interest investments take many years to surface into a true passive income and today finding those 12 to 16 percent returns are near impossible.

A Network Marketing Business can be started with a very minimum investment, and avail you with all of the learning materials and individual assistance to make start up turnkey and the process automated. While most venues of developing a livable passive income can take decades with a Network Marketing business it can be down within a few years.