It’s been around two years since COVID-19 first made its way to the American shores.
Do you remember the fear that we all had? Not only were we fearful of an unknown disease, but many of us feared for our livelihoods.
Businesses shut down. Employees weren’t able to work. Millions of Americans saw their only stream of income dry up overnight.
I was one of the lucky ones. My W-2 job was deemed “essential,” and we did not shut down. But even then, our hours were cut to 80% for quite some time.
Many Americans live paycheck to paycheck, and the bills don’t stop just because your income stops.
Even those making several hundred thousand dollars per year live a lifestyle that is dependent on their jobs or businesses to make ends meet.
Hopefully, COVID will become a part of history in the near future, and I hope we never have another pandemic like it…
But a pandemic isn’t the only thing that can cause your income stream to disappear overnight.
What if your business closed tomorrow?
What if your job relocated to another state, another country, or even shut down entirely. What if a competitor moved across the street from your business and cut your company’s revenue in half?
What if you got in a severe car accident tomorrow or were diagnosed with a serious illness and were unable to work? Worse yet, what if a family member was severely injured or seriously ill?
A child, your mother, a sibling. Your loved one.
What if you were faced with the choice of going to work or sharing the last moments of a loved one’s life? I don’t like to be so somber, but life is not always sunshine and rainbows.
These are things that need to be planned for.
Previously, I mentioned that I was one of the lucky ones when COVID began. I was also one of the prepared ones. I had a number of rental properties in March 2020. Even if my job was completely shut down, I had enough income from my rentals to pay a large chunk of my monthly expenses.
COVID reinforced what I already knew and had been planning for. Your income and situations can change, and you may not have any control over when or how it will change.
Of course, everyone should have a rainy day fund for times like that— but what happens when that fund runs empty?
Sure, you may have a 401(k) that you could tap into if needed. But do you really want to pay the potential taxes AND penalty for withdrawing those funds?
Creating a stream of continuous, passive income is one of the wisest and most responsible things you can do for yourself and your family.
If you would like to discuss some options on how to passively invest in real estate, schedule a call. I would love to help protect you from the unexpected.
