The Importance Of A Passive Income And How To Achieve It

Is there anything more appealing than making money with little effort? As farfetched as it might sound, it is more than possible to achieve such a goal once investors find a sustainable way to make money work for them. Most notably, you invest your money in a product that will generate a stream of earnings, often referred to as a passive income. 

Generally, passive income is money that flows in regular intervals without the need to put in a considerable amount of effort to create it. The ease of generating passive income has turned the concept into one of the most talked-about and sought-after elements of personal finance. Nevertheless, not every passive income stream comes with sustainable and rewarding returns. This article explains why passive income is important and how to build a passive income stream successfully.

Why is passive income so important?

In a nutshell, passive income is important because it provides financial stability, security, and freedom. Furthermore, it can positively impact investors’ potential to accumulate wealth in just about any financial situation as it is not constrained by time and effort. Here are four reasons why passive income is important:

  1. Passive income improves financial stability: Financial stability is one of the most important milestones on every investor’s road to wealth. It allows investors to weather financial storms such as inflation, crisis, or pandemic. As a steady flow of cash, passive income can cover investors if they lose a regular income stream or need to handle an emergency. At the same time, with passive income, investors can count on money coming in without having to grind for every dollar they earn. It allows investors room to maneuver and look at the big picture. Thus, you are able to make better financial decisions, which, in turn, enhances your financial stability.
  2. Passive income creates room for financial freedom: While financial freedom has different meanings to different people, a sustainable passive income stream can practically fulfill every need for such a concept. For instance, passive income can enable investors to work towards the goal of eliminating debts. At the same time, it can help build long-term saving goals or even early retirement. In other words, the more passive income you develop, the easier it becomes to stay free of issues in your financial life.
  3. Reduced anxiety and stress: Stressing over money is often cited as the main source of stress, even more than politics, work, or family. It also can lead to mental and physical problems and impacts everyday life. Passive income can prevent such issues by providing security and alleviating the fear of not being able to process payments. It brings financial support and long-term stability. Thus, passive income allows investors to manage themselves, their time, and their assets more effectively. The anxiety and stress over the future financial situation are also reduced.
  4. More freedom to pursue your passions: A sustainable stream of passive income helps investors escape the paycheck-to-paycheck lifestyle. When investors are no longer under the pressure of maintaining undesirable jobs to make ends meet, thanks to having a steady passive income stream flowing into their finances, they are allowed to have options. These options include more freedom to pursue their passions or dream careers or even opportunities to make more robust and meaningful connections with the people and the world.
Investing in the real estate and construction industries is a reliable way to generate high reward passive income.

How to create a sustainable stream of passive income?

As promising as it might sound, finding a viable passive income stream might not be simple. Earning a sustainable passive income does not only take an investment of either money or time upfront but also requires investors to have suitable lifestyles and skills. Moreover, not every passive income stream can generate sustainable and rewarding returns. Here are four possible options to consider:

  1. Buying cash-flowing assets: This is probably the most common passive income stream where investors can earn financial returns produced by their assets. Examples include industries such as real estate and construction or investing in stocks. Investing in this passive income stream can generate sustainable and high rewards, yet it can take a lot of time to learn how to make it a profitable venture. Thus, investors should consider hiring a management company to monitor the property and communicate with renters.
  2. Building assets: By creating their products or services, investors can also earn passive income. Popular examples of this stream include offering online courses or digital products such as e-books and information guides. While investors can earn promising residual income with the method, it also requires a significant commitment to the initial investment of time and effort. Moreover, this method might not apply to all investors from different walks of life as it demands specific skillsets and know-how.
  3. Sharing or selling assets: This method relies on the ability of the investors to turn whatever they own into income-producing capital. Typical cases include renting out properties or selling investments. This method also requires an initial investment in physical objects and investors’ extra time and skills. Though the level of investment needed might not be too complicated, the rewards are hard to convert into a sustainable stream of income.
  4. “Reverse” passive income: This method does not necessarily involve ways to earn more but instead focuses on reducing spending. By cutting existing monthly expenses, passive income can be acquired to be invested or spent on personal necessities. This method could add to investors’ existing income by a few simple financial changes or refinancing decisions, yet the rewards might not be too promising.
Without a reliable management firm, it is more difficult to capitalize on the investment opportunities in cash-flowing assets such as construction equipment rentals.

Why Foundation Capital is a reliable option for sustainable passive income

As indicated, investing in cash-flowing assets promises higher yields than other methods. Nevertheless, it is also more complicated to get into, especially in competitive industries such as construction and equipment rentals. Management firms such as Foundation Capital can help investors choose viable investment options, monitor investments, and assure income is generated more gratifyingly. Here are four reasons why Foundation Capital is a reliable option for more significant earnings from passive income:

  1. Foundation Capital provides a gateway to the highly lucrative construction industry. The global construction industry is currently more coveted for its explosive growth potential. Thus, investing in construction equipment is and is continuing to be a reliable option, in both terms of security and returns, for passive income. With a proven track record working across many megastructure projects, Foundation Capital possesses the contacts, the know-how, and the reach to enable investors with significant monthly earnings from passive income streams.
  2. Foundation Capital makes investing simple for investors. Foundation Capital organizes a straightforward investing premise in which investors invest in the machinery and technology that is the foundation of all megastructure builds. The firm then leases the equipment to those businesses managing the projects, earning investors a monthly passive income. At the end of the contract (five years or longer), investors can get the money back by selling the asset at the original price.
  3. Foundation Capital offers rewarding monthly income. All lease and buyback investments with Foundation Capital deliver monthly payments with returns of up to 26% per annum. There are also options for investors to consider, such as choices between a fixed 14% return or a floating rate return which historically has delivered higher income. In addition, Foundation Capital maintains strict business relationships with the companies that lease the equipment. We make sure their creditworthiness can be verified through a rigorous audit process.
  4. Foundation Capital secures your investments. Foundation Capital protects your investment with strict policies to have assets insured at all times. Moreover, investors are also ensured of simple exit strategies with no hidden terms and conditions or fees.

How to Get Started with Foundation Capital

If you want to generate a sustainable passive income stream, Foundation Capital is one of the most reliable organizations to invest in.  Our process has been refined, perfected, and proven over the past 12 years of renting our clients’ assets to the construction industry.

For more detailed information on how to make a capital investment in construction with Foundation Capital, as well as the terms, conditions, and risks, refer to the following FAQs and guides:

(Support) What Is Foundation Capital and How We Invest?

(Support) Construction Investments Vs. Others

(Support) Foundation Capital FAQ Library

(Support) Schedule Your Free Consultation

(Social Media) Foundation Capital Facebook

(Social Media) Foundation Capital LinkedIn

(Social Media) Foundation Capital Twitter

Curbing The Worst of Inflation with Passive Income from Construction Investments

With inflation rates rising and interest rates on the decline, regular income is decreasing in its actual worth. While there is nothing to do about inflation itself, investors can give earning potential a boost with inflation-busting passive income. Foundation Capital offers investment opportunities in the soaring construction industry that can help investors earn money with little maintenance and great security and excellent returns.

Rising Inflation Leaves Investors with Less Real Income

Inflation is making headlines around the world as it has risen from 6% to 9% in more than half of the economies. Rising prices in core areas of budgets and the consequent devaluation of the currency has left investors with a significant granted financial hit in the last two years.

For instance, income is losing real-world purchasing power even as wages are reported to be rising at the fastest rate in years. As the Consumer Price Index continues to soar in both the advanced and developing world, if your regular income has not adequately also increased, you are losing money.

Traditional savings also fail to protect investors as banks have been pressured to boost spending in a post-COVID world. In fact, the European Central Bank has even set a negative interest rate, meaning that account holders across Europe are paying their banks to hold their money.

There are levers investors can pull, in terms of their jobs, investment, and spending, in order to diminish the negative financial impact of inflation. Nevertheless, most of these require major changes and cutbacks that are either risky or excessive. Switching jobs, extreme tracking of expenses, and high-risk investments with little guarantee… might not work for everyone in a world where certainty remains far-fetched.

How Passive Income Can Fill the Gap

There is a reason why the concept of passive income has gained significant traction of late. As a low-effort solution to investing, it generates an effective stream of income with little or no maintenance. Thus, passive income can assist you in keeping inflation and its impacts at bay.

Passive Income can help curbing Inflation
Passive income can help curbing inflation.

Passive income refers to the money you earn that does not require active effort in terms of money, time, and resources. For example, stocks that pay out dividends, a spare room for rent, a space on your website for selling advertisements, royalties from books… The initial level of effort required varies with each scenario, but the results are the same: a stream of the steady income that builds security over time.

While earlier, the options were limited, there are now various investments to choose from that deliver respectable income streams. Nevertheless, the increasing number of options also comes with challenges in choosing the right stream of investments. Modern options, such as shares, Initial Public Offering (IPO), cryptocurrency, or microcap shares might seem attractive, although they are risky but because they are speculative and might generate better returns, yet the risk is too high and requires more research and monitoring than one might expect for a passive income. Meanwhile, investing in tangible assets offers much more secure and stable returns. In short, Shares, IPOs, and cryptocurrencies are all speculations that deliver no stable income whereas tangible assets are income-producing investments.

Construction Investments as Reliable Passive Income

The global construction industry is currently more coveted for its explosive growth potential. It is expected to reach an estimated USD 10.3 trillion by 2023, and it is forecast to grow at a Compound annual growth rate (CAGR) of 4.2%. The demand for construction equipment is also continuing to increase, and is anticipated to reach USD 228 billion by 2026. Thus, investing in construction equipment is and is continuing to be a reliable option, in both terms of security and returns, for passive income. In fact, it is expected to offer an exponential growth of 23% by 2023.

As promising as the industry becomes, finding a viable investment opportunity might not be that simple. While access to megastructure construction projects ensures secure and stable income as they are backed by Government funding. taking part in small projects promises less desirable returns.

Foundation Capital | Rental crane vehicles
Foundation Capital enables a passive income stream for investors by offering access to the construction industry.

Foundation Capital is one of the more unique organizations that enable investors to take part in this highly lucrative opportunity. Established in 2007, Foundation Capital specializes in giving investors access to the construction industry by means of investing in and owning the machinery and technology needed for megastructure builds. As the organization leases equipment to businesses managing the projects, investors earn monthly income with returns of up to 26% per annum. Not only are the assets secured and insured, but investors are also ensured of simple exit strategies with no hidden terms and conditions or fees. For instance, at the end of five-year contracts, investors get their money back by selling assets at the initial purchase price.

How to Get Started with Foundation Capital

If you want to put your money to work, Foundation Capital is one of the most viable and secure ways to do so. For more detailed information on how to make a capital investment in construction with Foundation Capital, as well as the terms, conditions, and risks, refer to the following FAQs and guides:

(Support) What Is Foundation Capital and How We Invest?

(Support) Foundation Capital-Partnered Construction Companies

(Support) Construction Investments Vs. Others

(Support) Foundation Capital FAQ Library

(Support) Schedule Your Free Consultation

(Social Media) Foundation Capital Facebook

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