After multiple conversations and complimentary calls, I discovered that most people do not know what financial freedom means to them.
Financial freedom is simply a state where your passive income, earned from investing, is higher than your monthly costs.
It is a state where your money, not your time or effort, earns you enough to maintain a certain lifestyle
How is this possible?
It is possible when you invest in income producing assets.
Income producing assets are assets that provide cash flow. Income investing allows you to build multiple streams of income.
I used to think investing was only for wealth preservation. The truth is investing is for wealth preservation but, in addition, it can also earn you cash flow to support your lifestyle today.
Consider these two examples
Ben got fired from his job. He needs at least N50,000 to meet his monthly expenses. He has savings worth N2m. He has to start withdrawing from his savings to sustain himself till he gets another job. He continues to deplete his stash
Lera decided to take a break to get a new job. She needs at least N50,000 to pay for expenses monthly. She has N2m invested in an income producing asset that pays her 20% annual. With interest paid out quarterly, she earns N100,000. She can adjust her expenses till she gets a new job. She doesn’t have to deplete her stash
Income investing provides liquidity; extra income or cash flow during an emergency
Most people do not realize there are good income producing assets to invest in. Some great examples include dividend paying stocks, real estate projects, private investment notes peer-to-peer lending and private lending.
However, the investment required to get into some of these options are steep and some of them are also risky ventures. This is why it’s best to build up your safe investment options first if you’re risk averse.
If you’re willing to take some risk to earn more but you don’t have enough money, then it’s time to consider collaborating with others to earn you some additional cash flow.
This is even more attainable in emerging countries in Africa with growth potential
Side hustles are great but they require time and effort
It’s time to consider how to take advantage of income investing and earn from putting your money to work.
P.S. Two important things to share. First one is we are still taking pre-orders for my book, sign up here to get your copies before we run out of pre-order sales. I already gave out tickets to my exclusive book launch event in Lagos. More bonuses to come.
and secondly, The Green Club is now open to new members. Share with a friend to share with a friend. We need more people investing to earn more income