If you have been following Passive Income to Retire, you must know by now that I am hoping to create enough passive income to retire in 2-3 years. By the time I turn 27, I hope to be retired. This takes a lot of work and planning. People typically work 40 years before they retire and to suggest that someone can do it in this time frame without cutting your living expenses significantly is difficult. In order to do this, I need to develop my passive income streams.
Current Passive Income Streams
In order to accomplish my early retirement plan, I hope to first leverage my time to build up online income first. This will give me extra income while I am still working at my day job. I am choosing to start with online income because there are no upfront costs. While I may have time to invest, I don't have a lot of money, since I am so young. As a result, starting with online income is important. The other benefit with this idea is that I don't need the income for another 2-3 years.
With extra income from blogging and other online business models, I will be able to invest it back into investments that will produce passive income streams. I am still not sure how I will prioritize these, but I know it will probably begin with more online ventures. I see these as a quick way to earn income. Quick meaning within a couple years.
Future Passive Income Streams
My future passive income streams that I hope to develop are more long term goals. I hope to invest in both dividend investments and real estate. I chose real estate because there are many tax breaks and it can be a true passive investment. It also means long term income security. While part of me worries about the longevity of earning income from online efforts, I know that people will always need a place to live. Investments that pay dividends can also be a great source of passive income, but they require upfront money (as do rental properties).
Since my wife and I will be able to live of her income alone, this means that I can use my income to generate more passive income streams. Any money that I earn from blogging in the next 2-3 years will go towards these three income streams. As I get closer to making close to my income from my day job, I will be able to have a clearer picture of a time frame for these other efforts.
Shawn Manaher is a former financial advisor, has founded 5 online businesses, and is a coach, speaker, podcast host, and author. He's been featured on Forbes, The Consults Corner on TAE Radio, The Writing Biz, What's Your Story, and more.