Things in life cost money, and sometimes the cost of the things we want, have, or need can have an influence on the decisions we make. Financial freedom is the ability to make choices across all areas of life without pressure from financial considerations.
At Level 1 Life, your “Money Factor” is the number you would need your investments, real estate, or business to passively generate for you each year to achieve financial freedom.
How do you generate passive income? Here are some ideas:
- Live on less than you make, invest the difference or save, invest, or buy real estate.
- Write a book.
- Create a product or service.
- Start a business (or side hustle to start).
- Dollar cost average in your investment strategy.
- Explore dividend paying stocks and mutual funds.
- Understand different types of bonds and how fixed-income investments fit into your overall picture.
How much would you need in passive income from your business or in your portfolio (mix of all investments including stocks, bonds, mutual funds, and real estate) to generate your “Money Factor” without touching the interest?
If you look at your business or portfolio as the goose, think of the “Money Factor” as the golden egg. Tend to the goose so that it produces all the eggs you need to have financial freedom!