Many people make the mistake of not planning for their old age and retirement. They forget that one day they will become old, frail, and unable to do the things they now happily do. This lack of foresight often leads to difficulties in retirement, where the money they saved may no longer be enough to cover their basic needs. As a result, they may have to go back to work, sometimes even at a lower wage than before, just to make ends meet.
The key to achieving financial stability in retirement is to have a passive income stream. This income should not be reliant on a job that you have to actively work for or babysit. Instead, you need the income that will keep coming in even when you are no longer able to work. This can be achieved by investing in assets that generate income, such as stocks, bonds, and real estate.
It is also important to take stock of your expenses and try to reduce them as much as possible. Most bills are recurring, meaning they will continue to pile up even when you are not actively earning money. To avoid accruing debts, you need to find a way to pay for these bills with non-recurring income.
One of the best ways to create a passive income stream is by starting a business. Although it may take a few years to build a successful business, the long-term benefits are worth the investment. You could create a business that will not only serve you but also your future generations.
In addition to starting a business, you could also consider investing in real estate. Real estate is a great way to build a passive income stream as it generates both rental income and capital appreciation. You could invest in rental properties, and REITs, or even buy and hold properties for the long term.