Passive income is a great way to have a steady stream of cash flow without having to exert too much effort. Unlike active income, passive income allows you to earn money even while you’re sleeping. This is why many investors are interested in creating multiple streams of passive income.
If you’re looking to increase your knowledge about creating passive income, here are some books that every investor should read for long-term success:
1. Rich Dad Poor Dad by Robert Kiyosaki
Rich Dad Poor Dad is one of the most popular books on personal finance. It explains the difference between assets and liabilities and how to use them to create passive income. Kiyosaki emphasizes the importance of financial literacy and teaches readers how to leverage their assets to create financial freedom.
2. The 4-Hour Work Week by Tim Ferriss
The 4-Hour Work Week is a book that teaches readers how to design their lifestyle around their work. Ferriss introduces the concept of outsourcing and automation, which are essential in creating passive income. The book also stresses the importance of time and how to use it wisely.
3. The Millionaire Next Door by Thomas Stanley and William Danko
The Millionaire Next Door is a book that examines the habits of wealthy people. Stanley and Danko conducted extensive research and discovered that many wealthy individuals lead a frugal lifestyle and invest their money wisely. This book emphasizes the importance of discipline and patience in building wealth.
4. The Simple Path to Wealth by JL Collins
The Simple Path to Wealth is a guidebook for investors who want to achieve financial independence. Collins explains the difference between active and passive investing and why passive investing is the better choice for most people. The book also introduces the concept of FI/RE (Financial Independence/Retire Early) and explains how to achieve it.
5. Bogleheads’ Guide to Investing by Taylor Larimore, Mel Lindauer, and Michael LeBoeuf
The Bogleheads’ Guide to Investing is a book that teaches readers how to invest in index funds, which are passive investments. The authors provide practical advice on how to invest in a low-cost, diversified portfolio and how to avoid costly mistakes. The book emphasizes the importance of simplicity and discipline in investing.
In conclusion, creating passive income is a great way to achieve financial freedom. Reading books on passive income is a good way to gain knowledge and insights on how to create sustainable streams of passive income. The books mentioned above are a great starting point for investors who want to achieve long-term success.
