Looking for ways to create passive income to retire early? Maybe you are saving up for a dream vacay or are building up a rainy day fund? Then consider creating passive income to help you reach your financial goal!
For most of my professional life, I kept “job hopping.”
The time I spent at a particular job starting getting shorter and shorter. After the third job in three years, I finally caught on to the recurring theme.
I didn’t have clarity on what I wanted from my work life.
I kept striving for career success but not career fulfillment. And with that mentality, there’s no job security regardless of the company or position.
After the aha moment, I got off the roller coaster and took time off to travel the world. I started in Sedona, Arizona where there are numerous energy vortexes. After all, I am all for energy healing!
Why not get grounded before embarking on my Eat, Pray and Love journey! Eventually, I made my way through Europe...sort of like Elizabeth Gilbert herself!
During this time off, I realized how my life was a series of experiments comprising of a fulfilling spiritual journey. With each career challenge, I took opportunities to develop my soul.
As I developed on the spiritual level, my professional career needed to evolve as well. No wonder I kept feeling restless year after year at the same job. Each career move was merely a pivot in the right direction to realign my career path with my soul path.
Feeling job dissatisfaction was the Universe’s way of encouraging me to continue to align my new skill sets in a way where I’m contributing more impact for the highest good of the collective consciousness.
So I viewed life as an experiment.
The challenges along the way were opportunities to develop my soul and the lessons learned would be shared with others. But how was I going to sustain experimenting and taking on more risks?
I needed the means to do so. After much research and a whole lot of trial and error, I boiled it down to a simple investment strategy.
Here is how I created passive income to support my "work life experiments":
My investment strategy in a nutshell...
Who would’ve thought having a business economics degree would come in handy for personal finance junkie like me?
Although I didn’t think I would ever use a major that I didn’t enjoy studying, it sure came in handy on my spiritual journey to wealth + wellness (wealthness)!
During the first month after I quit my job, I had no choice but to face the numbers.
I needed to determine how I was going to support myself without a bimonthly paycheck. In doing so, I recognized where my hard earned money could be passively increasing in value greater than inflation rate.
Passive income from dividends and capital gains...
I began to reallocate funds from my savings account to a more diversified asset portfolio. When it came to the stock market, I have a pretty high risk tolerance.
But being an emotionally sensitive empath, sometimes the market volatility can get the best of me! So here’s how I minimized risks:
Diversify across different asset classes
Diversify within asset classes
Diversify across markets, countries and currencies
Last but not least, I made sure I diversified across time. I’m talking at least a ten year long term investment strategy. No jumping in and out of the market.
Even the top financial gurus are not able to predict the right time to buy stocks. But if I kept adding to my investments systematically over months and years, I reduced my risk and increased my returns over time.
Specifically, I followed author of “The Simple Path to Wealth” Jim L. Collins investment strategy.
I opened a Vanguard brokerage account and invested in Vanguard Total Stock Market Index Fund Admiral Shares (VTSAX). It is a low cost index fund that hits all the diversification points mentioned above.
Yes, almost 100% of my investment portfolio is invested in VTSAX.
And yes, I sleep very well each night. Interested in taking a deeper look into this strategy? Start reading “The Simple Path to Wealth” here!
Or if you prefer audiobooks, I bought mine on Amazon to listen to over and over for the investment tips and mainly for the inspiration. You can start listening to "The Simple Path to Wealth" audiobook here.
Grab your FREE E-Book today!
Money is emotional for many people.
It’s not easy to stay on track with our financial goals when we allow our emotions to get the best of us. Sometimes, unexpected emergencies happen too. Here are a few tools to help you stay on track to an early retirement.
Early retirement calculator...
Personal Capital offers a free in-depth retirement planning calculator. Know exactly where you stand relative to your retirement goals.
You can also use Personal Capital to track your net worth, asset allocation, and portfolio performance. I like their holistic view to a unique financial picture. See how close you are to financial freedom here!
Create passive income blogging...
I got started blogging for fun to share my personal finance tips. To finance this hobby, I enrolled in the Making Sense of Cents Affiliate Marketing Course. Within weeks of applying the strategies in the course, I was earning passive income!
I learned marketing strategies blogger Michelle used to go from $0 to over $100,000 per month on her blog. The course provided the latest social media to marketing tips to create passive income blogging.
Through the Making Sense of Cents Affiliate Marketing Course, I was earning passive income on my website within weeks! To learn more about blogger Michelle’s tips on how to create a six-figure blog, check out the course here!
Ready to create even more passive income?
Financial independence retire early (FIRE) like a boss!
Get FIRE’d up about financial freedom.
There are a endless ways to create side hustle income and reach FIRE. Investing in stocks, owning rental property, creating your own online biz, and so forth.
But it doesn’t mean you need to do it all. Just pick 1 or 2 that gets you excited.
Everyone's financial situation and personal interests is unique. It’s important to try out different side hustles to see what works best for you.