35. What Does it Actually Mean to Create a Passive Income?

Passive income is often over-glamorised on social media as the thing that millennials and Gen Z’ers rely on to get them to their dream lifestyle or financial freedom.

But what does it actually mean to have a passive income? And how does one get to the point of living off it?

In today's episode Cat and Christine discuss exactly this. They chat about how there isn't a right or wrong way to create passive income and how it might fit into the way you approach your finances. 

Specifically, they cover:

• What a passive income is, and where the misconceptions lie 
• Why renting out your property ISN'T passive income 
• The realities of what it takes to create a passive income (i.e. a large principle sum to generate income off of) 
• Side hustles vs passive income - whether there's a difference
• Dividends as a form of passive income 
• Investing in growth assets to get to generate a passive income later in life
• Cat & Christine's personal experience with passive incomes (and why they won't be trying to generate one any time soon)

...And much more, there's lots more goodness in there, so get listening now.

Check out our website and show notes at www.itsnosecret.co.nz/35

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Disclaimer:
Investing involves risk including the possible loss of principal and there is no assurance that the investment will provide positive performance over any period of time.

The information provided should not be relied upon as investment advice or recommendations and should not be considered specific legal, investment or tax advice.

Any information we provide is general only and current at the time of writing.

Kernel Wealth Limited is the manager and issuer of the Kernel KiwiSaver Plan and Kernel Funds scheme. The Product Disclosure Statements are available at www.kernelwealth.co.nz