From they day you are born you are taught to attend school and graduate. Then the importance of college is emphasized, so you attend college and graduate. Finally, you find a rewarding and high-paying job, and work for the majority of the rest of your life. The flaw with the logic resides with our personal time constraints.
One day, as we well know, has 24 precious hours. The majority of us will spend 6-8 of these hours sleeping and another 7-9 per day working. This leaves between 7 and 11 hours of free time daily. Eleven hours per day of free time is the maximum? That means at most, which would also require sleep deprivation, we'll still only have less than half of our living hours to spend doing what we enjoy!
To an individual such as myself, this is unacceptable; yet, the majority of people have accepted work as a daily requirement for life. By no means am I supporting the idea of blindly quitting a quality job to roam free. What I am supporting is the idea of passive income - income that you make regardless of whether you're working directly to earn it. My favorite method for generating passive income is real estate. With extremely low prices and foreclosures and short-sales occurring on a daily basis, today's market is very kind to real estate investors. Furthermore, it is easy to get involved with real estate deals during evening hours and on the weekends, while still working a full-time job.
Oftentimes you can acquire a single family home for well below market value. With the proper techniques, this house can be rehabilitated to drastically improve its total value even and then sold for a profit, or simply rented to a tenant. At $1,200 per month, a single-unit home brings in $14,400 of rent each year. This tenant is essentially paying the mortgage for you! Even after expenses are deducted, it is often easy to clear $100 in positive cash flow each month, and that can be after the fees are paid to a management company which will take care of the details (such as mowing the lawn) for you. Wouldn't it be nice to have $1,200 (12 months x $100) of extra income each year, all while someone else is paying down the mortgage on your second home? This setup allows you to increase your total number of assets without using much of your own money!
I am not emphasizing that work isn't important, simply that we need to work smarter instead of harder, therefore freeing up more time to enjoy our favorite hobbies and spend time with our families. I believe that if you set your mind to it, you can achieve great things, whether that be in real estate or otherwise. Once you have enough passive income flowing into your bank account, you'll be able to quit working a job you don't enjoy and pursue volunteer opportunities, among other things, which are truly rewarding. When you look back at your life, do you want to remember working 40 hours per week because you had to, or volunteering and working jobs because you enjoyed them, while having all the extra time you desired to pursue other interests? I already know my answer.