Saving up money is important. But, what we do with our money is much more important. In today’s environment, if we are just saving money, we are constantly losing money to inflation.
As a result, we are always thinking of ways to earn more money. But that becomes hard to
accomplish when you consider all of our life priorities. In essence, you may be limited to your capabilities of earning extra dollars because of time. This is why passively investing is so important. By creating other income streams, we protect ourselves from unforeseen financial events. These are the type of events that can negatively impact our families. Think about being laid off from your job. I don’t say this to scare anyone, but the reality is that it can happened. In 2011, I was laid off as part of the great recession. I sat in the airport parking lot knowing what financial impact losing my job would have on my family. Today, I can attest, that things would be very different for me because of my passive income streams that are at working for me. We want our money to be working hard for us even while we sleep. If I become laid off again, my passive income streams would continue providing for my family.
Why is passively investing an important component of work life balance?
Time freedom is the most beneficial factor of passively investing. It frees up your time and stress. Passive real estate investing usually involves no physical labor and only upfront due diligence when deciding which opportunity to invest in. Once a decision has been made, you simply invest your money and let your money work for you. For most people, when they think about investing in real estate, they often think about the time and effort they need to dedicate in finding properties, operating, getting financing, responding to maintenance issues, and dealing with tenants. For a busy professional, this type of investment can help you generate more income even with a full-time schedule at work. You can make extra money without acting as a landlord. A syndication provides an investor the opportunity to passively invest in multi family real estate.
The ability to diversify across markets, sponsors, properties, asset classes quickly is another reason to consider passive investing. Instead of worrying about how you can divide your time and energy in managing your investment, passively investing in real estate is a terrific method to generate income without having to put in the time and effort required for more “active” investments like house flipping, property rentals, etc.
The ability to diversify across markets, sponsors, properties, asset classes quickly is another reason to consider passive investing. Instead of worrying about how you can divide your time and energy in managing your investment, passively investing in real estate is a terrific method to generate income without having to put in the time and effort required for more “active” investments like house flipping, property rentals, etc.