By Our Correspondent
Most people dream of attaining financial freedom — that moment when one doesn’t have to worry about how he will pay his bills, rent, and other basic expenses because all of them are provided for. Well, passive income can certainly make this dream a reality.
The expert in the field, Andreas Küffner, sheds light on how passively earning money is the key to real financial freedom. Let’s delve.
What is passive income? Küffner describes it in layman’s terms. It is about having enough income pouring in so that one does not have to trade his time and efforts for money anymore. It is about getting something for nothing. Sounds like financial freedom? It is, in every sense! Küffner shares, “Passive income may have that ‘get rich quick’ appeal. However, in the end, it does involve work. It’s just that you don’t have to work actively and tirelessly.”
Is passive income the key to true financial independence? Küffner answers, “It is. Most people believe that they have to work until retirement or become rich to attain financial freedom. But getting rich does not necessarily mean you will be financially free.”
On the other hand, passive income is what it exactly sounds like: Money pouring in whether one is actively doing the work or not.
Andreas Küffner shares that there are two main ways to earn money passively. One is through investments which create monthly, quarterly, or annual income by giving a fixed or standard return on investment. It comprises channels like government and corporate bonds, T-bills, rental property income, etc. The second is through businesses. This medium to earn passive money, Küffner explains, is more problematic for most individuals to wrap their heads around. It merely translates into passive business income.
Many people believe running a business means they need to be constantly working to clock any real success. But that’s not true. Küffner encourages people to create a business with a view to potentially systemising it so that it can work even without them. This way, come rain or shine, cash will continue to flow whether one is putting in the hours or not. When this happens, that’s real financial freedom.
Before signing off, Andreas Küffner recommends one of the best passive income businesses people can try their hand at is investing in real estate. Indeed, there are not many businesses that offer the freedom and compensation that real estate does.