What is passive income?

December 16, 2010Post by Laura Humphreys

When I’m mentoring – either in my online programme or one on one, I talk a lot about ‘passive income’.  This to me is the ultimate goal in life from a financial perspective.  No matter what you do, there will come a time in your life when you no longer want to do it.  Work wise, I don’t care how much you love your work, one day you will want to stop.  And even if you don’t, the true freedom is being able to choose what you do with your time.

Passive income is the goal.  Here’s the simple definition… its the income that comes in from sources other than your own physical input.  Passive is as passive sounds… passive!  You don’t do anything, you just sit back and the income still comes in.  Or you might choose to fulfil your life’s dreams and passions, sail around the world, visit the seven wonders of the world.  And the income still comes in.  Or you might choose to turn your energy and time towards things in the world that really upset you, the areas you feel you can make a real difference.  Help people, fix problems, turn broken worlds into better worlds.

The great thing about passive income is that it gives you the freedom to be who you really are.  To fulfil the deep yearnings in your soul.

This is a business blog.  But remember the fundamental philosophy behind liber8yourbusiness is that your business is your pathway to financial freedom.  Passive income sets you free.  To be free to do what you really should be doing.

To plan your business so that it will one day feed you passive income, either by selling it for a lump sum that you can invest, or by leveraging yourself out of the daily workings of the business.  These are the only true goals you should be working towards.

What’s your plan?