Forget Saving $1 Million, You Need To do This Instead

Passive Income should be your goal.

Dec 10, 2023

Photo by Pixabay on Pexels

Hello Passive Income friends,

When I first started investing, my goal was to save $1 million. That seemed to be the goal some people were shooting for. But after a while, you start hearing and seeing things that cause you to change your strategy.

people are living longer
some people work in retirement even if it is a part-time job
the stock market dropped 30-40%
the real estate market crashed

Then you could go on and on about other reasons that make you think - is saving for $1 million a good strategy?

Photo by Andrea Piacquadio on Pexels

Change your strategy

I am not saying you shouldn’t save for $1 million. But you should look at another metric to aim for and that is passive income.

Today, you probably have a general idea of how much you need to live on each day, week, and month. So when you retire, it will be very similar but maybe a little less.

When you save for a million or whatever dollar amount you aim for, then you worry about having enough money to last you until you die. As you have seen, money goes by fast. Then you also worry about the state of the economy.

We have high inflation which is eating up more of your money.

So if you saved $1 million, you only have that amount of money to live off of. Once it’s gone, it’s gone.

But if you earn passive income, you have a general idea of how much money you make every month.

For instance, what if you earned $500 a month in passive income?

When you retire, you will still earn around $500 in passive income as long as you have your system working and you continue to make adjustments as needed.

The $500 will continue to pay you every month until you retire.

To me, this seems to be a more realistic system than the $1 million you saved for. The $1 million decreases every month that you take money from this pot.

Then there will be some months and years when you’ll spend more than you’re used to.

One day, that $1 million will be gone. Then what do you do?

You can’t get a loan for your retirement.

This is why you should start a passive income stream. The passive income will last you today until the day you die.

If you haven’t started a passive income stream, I encourage you to make this your goal as you head into 2024.

Take care,

Tom

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