Importance of Passive Income in the Gig Economy

[Benjamin Riehle]

I wanted to share my thoughts on an article that I recently read in the Harvard Business Review. The article discussed the current job market, and how the lifetime career model is disappearing. The central focus of the article is how the 20 year job with a retirement plan and a pension is practically gone, and the gig economy is now taking over the market place. In this new high speed, fast-pace world you cannot expect to work for the same company your entire life. This holds especially true for millennials searching to get their foot into the job market, and have not been able to find their place in the old model.

This results in the need for everyone to begin looking for ways to earn passive income to adapt to the new gig economy. Real estate investment is quickly becoming a necessity to provide a secure retirement and pension plan for an entire generation. Rebelling from the status quo and looking for alternatives from the traditional career path allowed me to discover real estate investing at an early age. At 18, I purchased my first investment property, which allowed me live for free in college. This passive income helped me as I started out in life, and very soon after allowed me to purchase my second property. This creation of passive income allowed me the financial freedom to grow my real estate business and find secure footing in the new economy. As this trend continues it is critical that the millennial generation understands that although the 20 year career path is extinct there are opportunities available that will provide a greater level of financial freedom and will not require 20 years to accomplish.

(Source: Harvard Business Review)