What is passive income, really? May not be about retiring too early yeah.

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Updated on 27th July 2019.

Many people I know tell me that they are still working because they needed the money so that they could retire comfortably in the future. Some will tell me that they would love to invest into something profitable which could give them passive income. In the largest economy of the world, American millennials are expected to be financially independent by 22. (read here) So, are all of is thinking about the image below? Doing nothing but money kept coming in?

<This Image is courtesy of Stock Photos from Who is Danny>

When their passive income grows tremendously, then they could stop working and go vacation every other week. Frankly, except for those who somehow succeeded in their entrepreneur journey, most working professionals will not be retiring totally and enjoying vacations every other week. Not even every other month, unless it’s really something very affordable, like a trip to the beaches in Malaysia maybe. Earlier article: Whether it’s T20, M40 or B40, just do more

Gary Vaynerchuk (Belarusian American entrepreneur, New York Time’s best selling author, speaker and internet personality) says that hating our work and resigning totally versus fully relying on passive income is NOT realistic. “Stop buying into the idea of Passive Income.” Most of the time passive income simply meant that we do something extra, invest into property for example and 10 years later, we have more options in terms of changing to a job which we love more versus a job which we hate our bosses so much we are thinking of resigning all the time. So, we should not believe that passive income meant we could retire, just like that. Do listen to how he explains it. Here’s that video in Facebook.

I am not so sure if there are that many working professionals who could just retire anytime they want here in Malaysia. Perhaps there are, especially those with salaries of a few millions every year? You see, if I have a salary of RM2 million a year and I saved just RM1 million a year, I could have saved RM10 million at the end of 10 years. If all my money is in the bank and I stop working, the interest I get on a monthly basis is RM33,333. (RM10 million x 4% interest divided by 12 months) I think it’s enough for me to retire comfortably even if it may not be enough if I intend to keep holidaying overseas… Earlier: We can also invest out of the city we live in

No wonder I am still writing for kopiandproperty.com everyday. Must keep up this passive income potential and stay the course. As for retiring, I do not feel there’s the need. I love what I am doing right now and actually, I bring my family for a short break every few weeks. Just have to be grateful with everything I have instead of feeling sad with things I do not yet have or may never have. Happy ploughing towards that passive income dream.

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<Featured Image is courtesy of Stock Photos from Photon photo>

Next suggested article: 38 of youths have personal loans. Not something to be proud of

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