As we’ve discussed in the past, even though it’s possible to start a passive income portfolio with as little as $5000, there are many challenges to building a big enough portfolio to be able to live off of it. Of course, a dividend portfolio is one of many different ways to generate passive income but it is obviously my preferred way of doing things. There are many challenges of course in selecting the right stocks, putting enough aside, etc. It’s easy to become discouraged, especially when you start later on. That being said, if you keep your eyes on the prize, I think it’s very possible for almost anyone to achieve that goal.
Imagine How Things Would Be If You Had A Big Enough Portfolio From The Start?
It might seem unreal or impossible but in fact, imagine that by the age of 25 or 30 years old, you had been able to put your hands on a portfolio that generated enough passive income to live off of. I doubt you would have complained too much. You probably would have still worked but it might have been a different job, a different focus and you probably could have lived a different life. Maybe not but chances are that some things would have been different. You might be spending more time with your family, travelling, staying in shape, doing activities with your friends, etc. I’m also certain that because of all the reasons that help the rich get richer, it would have been easier for you to accumulate assets, etc.
One Extra Motivation…
While it’s obviously not possible to go back in time and give yourself a passive income portfolio, one thing that you can do and that you do have control over is building a big enough passive income portfolio for you to live off of but also big enough to keep up with inflation. If that is the case, you should be able to more or less keep the same amount throughout your retirement and leave that same portfolio to your kids, grandkids, etc. It might seem far away (it does for me), but I think it’s easy to imagine how life changing that could be and how much of an impact it could have on future generations. I’m not saying it’s easy to do (it’s not!) and maybe too many it’s not extra motivation, but to me it clearly is.
So I’m curious, does the thought of possibly giving away a passive income portfolio motivate you in any way? How would your life have been different if you’d had one from the start?