The Quickest Way To Live Off Passive Income

Living off passive income is a pipe dream for many people. Who wouldn’t want to enjoy a stress-free life, without having to worry about work?

However, the quickest way to live off passive income is utterly achievable, nevertheless it can take a bit longer than we think and be a bit more difficult than imagined – but not too much.

That being said, there are a few strategies that can help you live off passive income quickly.

1. Increase Your Income

The first step towards retiring quickly ALWAYS begins with increasing your income.

Most people ignore this and want a miracle instead.

The more money you make, the quicker you can save for buying into passive income assets. There are many ways to increase your income, such as:

• Getting a higher-paying job
• Starting a side hustle or getting a small second job
• Starting a business
• Investing in dividend paying stocks or ETFs
• Investing in income generating websites

Increasing your income will certainly require work and dedication, but done well, the payoff can be significant. Sorry, but you simply cannot skip this step.

2. Live Below Your Means

The second step towards living off passive income quickly is to live below your means. This means that you should spend a lot less than you earn. This can be challenging, especially if you’re drawn to a certain lifestyle. However, living below your means is essential if you want to live off passive income quickly.

Living below your means doesn’t mean that you have to live a miserable life. It simply means that you need to be mindful about your spending.

Focus on the things that are important and meaningful to you instead of just “things” is the important mind shift here.

3. Save Aggressively

The third step towards living off passive income quickly is to save aggressively. This means that you should save as much money as possible. There are a few ways to save aggressively:

• Max out your retirement accounts, such as your 401(k) or IRA
• Gamify savings
• Set yourself a Ulysses contract for saving
• Automate your savings so that a portion of your paycheck goes directly into your savings account
• Rethink about what expenses are necessary and what are wasteful.

Saving aggressively can be challenging, but it’s necessary for keeping the goal of living off passive income quickly.

Essentially, the whole purpose of saving is to purchase income producing assets.

4. Invest Wisely

The fourth step is to invest wisely and purposefully. There is no point in investing in assets that do not produce passive income if you are trying to create a passive income portfolio. Investing is the only way you grow your money and build passive income. However, it’s important to invest wisely. Here are a few tips:

• Diversify your income-producing assets to reduce risk
• Invest in low-fee income-producing assets
• Don’t try to time the markets
• Have multiple streams of income from multiple asset classes
• Invest for higher income first then follow up with income growth assets

Investing wisely is the only way I know to you grow your money and reach your passive income goals faster.

Watching passive income YouTube videos won’t make it miraculously happen.

You need to take action and put in the repetitions.

5. Avoid Consumer Debt

The fifth step is to avoid consumer debt.

Debt is simply the bequeathing of our future earnings to someone else in exchange for something we want right now. Debt can be a huge burden, especially when you’re trying to save to buy assets. Avoiding debt is challenging because our entire culture runs on consumer debt, but it’s essential if you want to live off passive income quickly. Here are a few tips:

• Pay off your credit card balances in full every month
• Avoid taking on new debt, such as a car loan or mortgage
• Build an emergency fund to avoid relying on credit cards in case of unexpected expenses
• Start viewing debt as a form of personal slavery

Avoiding debt will help you save money, build character and reach your passive income goals exponentially faster.

6. Downsizing

The sixth step is to consider downsizing. Downsizing can help you reduce your expenses and save money. Here are a few ways to downsize:

• Move to a smaller, cheaper home or apartment
• Sell your second and third car
• Sell your only car and use public transportation or ride-sharing services
• Downsize your dining out habits and mindless subscriptions
• Seek out activities and experiences that cost nothing – there are zillions of them

Downsizing can be a difficult decision, but utterly worthwhile

7. Stay Motivated

The seventh is to stay motivated. If you can’t stay motivated, then the whole living off passive income goal will simply never happen.

Here are a few tips:

• Set specific passive income goals and track your progress
• Visualise your end goal clearly
• Visualise achieving small milestones along the way
• Find a support system, such as a financial group/blog/chat group who are on the same journey – a sense of community is powerful.
• Be very clear of your “why”.

Staying motivated can help you stay on track and reach your goals faster. Begin with the end always front of mind.

In Conclusion

Living off passive income quickly requires hard work and dedication, but it’s entirely possible. By increasing your income, living below your

means, saving aggressively, investing wisely in income producing assets, avoiding debt, downsizing, and staying motivated, you can live off passive quickly and enjoy a stress-free life.

It’s important to remember that amassing income generating assets is not just about having a lot of money. It’s about living a fulfilling life and doing the things that matter to you. This is where automating your savings and investing is key to allowing you to get on with your life and not obsess about the process.

If you’re interested in living off passive income quickly, start by taking small steps towards your goals. Momentum is key.

Set specific incremental goals, set up a savings system, set up an investment system and track your progress.

Remember that living off passive income quickly is not a one-size-fits-all solution. The investment assets that work for one person may not suit another.

It’s important to find a strategy that works for you and that you understand.

Finally, it’s important to enjoy the journey – don’t forget that life is to be lived. Life is not just about working and saving money. It’s about enjoying every single little thing along the way and finding contentment and occasionally happiness in the present moment. By finding a balance between saving, investing. working and living, you can quickly be enjoying a fulfilling meaningful life and reaching your goal of living off passive income quickly.

Essentially, the quickest way to live off passive income, is the way that you know you will stick to.

Cheers

Hugh Walker