Generating enough passive income to cover the cost of living is the holy grail of early retirement. However, it’s quite difficult to amass that big lump sum to generate enough passive income to live on. People spend more money as they get raises so they need more and more income every year. Early retirement offers a way out of this cycle by forcing us to examine how we make and spend money. While passive income is good, you’ll most likely have to get creative if you want to retire by 40. Most people won’t be able to generate enough passive income by this age so it’s good to generate some active income to bridge the gap to full retirement. Read More…
2012-12-30
Doing online activity is a great way to make an extra bit of cash. There are so many opportunities out there that although it is still work and will still be taxed by CRA it is a great hobby to start practicing and looking for new roads while young so that when you begin retiring you will have new areas to look to for fun and extra cash!
For someone that has lived all their lives in apartment is there more advice (?) since most don’t apply to me.
Call me looney tunes but I just dont think one is in a good position to generate enough active income if they hadn’t made extensive plans for their retirement earlier in life.
If one is looking for "a little active income" then you didn’t plan right at all. End of story!
God help you if your source of income stops and your dividends and other passive income dries up (market folds due to the lack of regulation on the banks).
Might have to get a job at the age of 80 to stay alive. Dont laugh it CAN happen!
Renting out your own home is a good idea. I find that so many people have more space than they need and living in expensive cities it is always good to rent it out to help pay down mortgages.
I feel old. I am over 40 and still have no real savings. But it is inspiring to read this nonetheless.
Come on there are plenty of more ways to make income without being forced to grind it out for the Man.
How about opening a lemonade stand! Sheesh! Kids today. 🙂
Great piece! Thanks for the share!
Dividend stocks as the article discusses is the way to go for strong passive income. We’ve been doing it for years in my household and with strong persistence and dilligence you can find some real gems that can keep you afloat for ages.
Never heard of Peer to Peer lending. Is it even safe? I checked the site but i am still not truly convinced i can make 10% ROI.
Will do some more reading but it’s interesting considering that banks here in Canada only pay 1.5% per year.