Passive income can translate to life-long success. But anything passive first takes active energy. The best time to put in the effort is when you are young and not yet ravaged by disease or burdened by family obligations. And, thanks to the power of compounding, the sooner you start, the easier it is to hit big passive income milestones.
It took me 13 years to build my framework, and I started off making $40,000 a year, living in Manhattan in a studio with a roommate. I went on to make much more, and being lucky enough to get a high-paying job gives you a real advantage. Still, getting to a place where you can retire early takes commitment and hard work. At age 34, I finally had the guts and the resources to negotiate a severance to be free.
Although it may seem daunting to build a passive income stream you can live on, the key is just to start. Save $100 and you'll be able to generate $3-$7 a year in passive income, depending on how much risk you take. Once you save $1,000, you'll be able to generate $30-$70 a year in passive income. Eventually you'll gain enough momentum where your passive income will start paying for significant expenses such as food, clothing, or transportation.
If you can work on building passive income for at least 10 years, you'll be able to taste more sweet freedom.