Using Passive Income as a Key to Financial Freedom #MumbiStrategy
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Income Opportunities doesn’t necessary mean, entail, nor lean itself as passive income streams. The idea of passive income is create one or more of streams of income, that keep on coming in regardless of your input once they are set up.
One way of achieving financial freedom is to have a passive income, but what is the meaning of passive income? Passive income is defined as being an income that is received regularly, but with very little effort needed to sustain it. At great examples of passive income rental property.
Clearly in most cases some sort of investment has to be made initially in order to initiate the process of passive income, Mumbi Properties have done its due diligence investigating how to use property investment to create passive income thought your investment.
It is important to understand the difference between passive income and a recurring income. As an illustration of the latter, let us suppose that you are the owner of a flower shop, and you have a contract to deliver a display of flowers to a hotel every Monday. Clearly this is a recurring income, but it in no way can it be considered passive, since it places an obligation on you that involves work. If the same situation occurred but you had a manager to run the flower shop, then the whole of the running profits of the shop could be considered a passive income. The same applies to property investment.
One of the easiest and certainly the most popular ways of generating a passive income is through property investments.
In very simple terms, when you buy the correct property at the correct price, you will be able to let it out without much difficulty!
Every month that the tenant wishes to stay, they need to pay the agreed rent, this becomes a passive income, at the same time over a period of time the rent will increase and over a period the capital value will increase!