Benefits of Income Producing Assets:
Create balance – Successful corporate professionals use income from alternative resources to supplement their income from employment. This allows them to work less, take more unpaid time off and enjoy life a bit more during their younger and healthier years.
Alternative Lifestyle – Many have quit their full time jobs all together because the income from side businesses grows to the point of replacing income from employment. Even if it doesn’t grow to that point, many people don’t realize the costs associated with staying employed.
Quitting the day job has its financial benefits, and if analyzed in depth, one quickly realizes that they really don’t need to be making as much money as they think they need to be making to live the life they want.
Early retirement – Establishing multiple streams of income on the side is a great way to early retirement. Many professionals, especially my generation today, don’t really look forward to slaving away for 40 years to enjoy an average retirement at best. They are looking to expedite “quality” retirement or retire multiple times during their lifetime.
Safety blanket – Many professionals enjoy what they do. They love their jobs. No I am not joking. There is a fair share who really enjoy their jobs, are very good at what they do and make very good money doing so. They too are interested in accumulating income producing assets, although for different reasons.
We know how big of a joke the phrase “job security” has become. Or perhaps they’d like to improve the quality of retirement down the road. Side gigs can also be a great way to legally reduce taxes. If nothing else, having the option to exit the rat race at any point in time has a lot of positive to be said for it.
Utilise Income Producing Assets to Build Wealth...
Accumulating income producing assets over time contribute to the fact that the rich get richer. The added benefit or beauty of assets that generate income is that the more you accumulate, the more they exponentially grow.
It makes perfect sense. Income from one asset can be invested in acquiring another, and so forth. The compounding effect resulting from parlaying or leveraging one asset to produce or acquire another is amazingly refreshing.
Building income producing assets is a fun and rewarding process, especially for someone with clear priorities and an end-goal in mind. These assets become a vehicle to achieve their objectives or end-goals.
Income producing assets can be used to supplement your income from employment, or as your full time income if you want to quit your job. They can provide for a very nice safety blanket, financial freedom and peace of mind, and bring more flexibility and freedom in your lifestyle.