What is Passive Income? My Parent's Mastered This By Their Fifties.

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Mum and Dad on holiday in Russia. Mum and Dad on holiday in Russia.

Over the years I have watched my parents living off the proceeds of their businesses, and I figure that they could be the masters of passive income.  

They worked bloody hard for the first half of their lives and were basically living off passive income by the time they were fifty. I don't think my parents would have really known they were living by a passive income model, it just happened that way because they were determined to help set all us kids up in business.

Mum signing her book

Dad started out as a motorcycle mechanic working for various garages when Mum and dad got married they became an enterprising couple. They borrowed ten thousand three hundred pounds from his parent to buy their first business, a BP Service Station in Moora. I am not going to go into the details of their many enterprises, however, if you are interested in their story my beautiful mother Patsy Briotti has written her memoir 'Bare Feet on Sharp Stones'.

The interesting thing about how mum and dad became masters of passive income was, they took calculated risks, one thing Dad taught me was how to measure a business's profitability, I got this lesson at 17 years. Follow this link to that story. Every business they went into had to be profitable first, then they went to work, improving the service and raising the standards. Once they had that done, they would either put in managers or sell, usually to one of us kids.

New ventures had a way of finding Mum and Dad, they never really went looking for them, often these would be something one of us kids come to the with and if it looked good they would run with it.

So what is passive income?

This is my take on passive income and what it means to me. "Having enough money to live the life I choose, whilst choosing to work or not".

No matter what business you are in you can never truly take your foot off the accelerator, every enterprise needs attention, my parents knew this too. Two day's before Dad passed away he was making sure my sister and I had done his BAS statement. We both had a good laugh at that.

To me, freedom is the word that would really define passive income and that is what I strive for in my life. I love having the freedom to move about as I want and it is this, that I value most.

I think it is important to determine why we want to go into business, I see many business people who are traumatised by how their business has taken over their life and they have become slaves to it. 

Once I determined how important freedom was to me, it changed the way I managed my business and my life.

Am I living the passive income life?

Maybe sometimes.

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