Have you ever envisioned a day in your life where you didn’t have to work for the money you earn? It’s fair to say that we have all embarked on this fanciful train of thought. But can you actually make money without working for it? Believe it or not! Most people do it every day.
Making money with little to no effort or on autopilot is called passive income and it puts you on the fast track to financial independence. If it sounds too good to be true then there is in fact a catch! Passive income doesn’t exactly materialise on its own. Passive income is broadly classified into two categories - the income you earn from your investments and the income you earn from a side hustle or an additional job. In this blog, we will talk about the former.
The first step to accessing passive income via investments is buying, creating, or contributing to assets that produce cash flow. If all goes as planned, your reward for that initial investment is an ongoing stream of income you can enjoy over time.
If financial independence is what you seek then it is imperative that you start generating passive income. Limiting your earning potential by sticking to a single source of income can prevent you from saving more, splurging more, and most importantly generating more wealth.
In a single income source scenario, your earning potential is limited by various factors such as your performance, the hours you put in, your health, your age, promotions, and additional work-related policies. If any of these aforementioned factors fail, your paycheck dives too.
Passive income doesn't have any of these limitations. You can earn passive income at any age and in any health condition. A larger stream of passive income makes you less dependent on your paycheck. Passive income can fund big financial goals, like retirement, or smaller ones, like debt repayment.
If you are looking to generate passive income by investing your savings then there are a few things you should keep in mind.
So, let's circle back to understanding how you can generate passive income via asset leasing.
Leasing involves the renting of movable or immovable assets for a specified period. It is an agreement between a lender, the lessor, and a borrower, the lessee.
The owner of the asset, typically an individual or a company, leases it to the borrower for a specific period and at a certain cost. The lessee is provided with exclusive use of the asset in exchange for periodic payments throughout the agreed-upon lease term.
Asset leasing can be an attractive investment approach for those seeking to generate passive income and diversify their portfolios. With asset leasing, investors have the opportunity to earn a fixed income while minimising risk and capital outlay.
Leasing offers investments backed by real assets, such as equipment or property. It provides a secure form of collateral which is often more reliable than other forms of investing. In addition, the investor can avoid tying up large amounts of capital since most leases are based on the asset's value rather than its full purchase price.
Grip makes the process of leasing easier and more efficient by utilising its innovative technology platform.
It uses technology to automate many aspects of the lease investing process, including document creation, applicant screening, asset selection, and investment management. It simplifies the entire experience from start to finish, allowing investors to focus on finding the best deals without getting bogged down in paperwork or tedious tasks.