I feel rich now. Once passive income is greater than monthly fixed expense is when I started to feel comfortable. I still work. I create investments and offer them to accredited investors so that they can have passive income too. In one fund, we distribute $100,000/month in excess cash flow. It goes out on the 15th every month and it's one of the greatest feelings out there. Of course there is stress but working when one doesn't HAVE to changes ones' perspective greatly. I'm not sure what you mean by "enjoy the fruits of your labors". I realized awhile ago that I'm happiest when I am pursuing a worthwhile goal. Money is just money. Helping other people, donating ones time, spending time with friends and family, etc etc. is most important but like anything else, balance is critical. You can't eat a gourmet meal 3x/day 7 days week or you won't appreciate it. Plus you'll be a fat-ass and a burden to society. Anyway, I feel rich in many ways. I'm not sure it should take money to feel this way but it doesn't hurt - money is a source of control, a belief structure. I didn't set the game up and I think many folks take it too seriously but that's the case with any game, right?

I think the first thing to do is to set up your family in something affordable and buy the home if it's some place you can see yourself for at least 7 years. If not, rent. The key is to figure out exactly what it takes to live each month and then start looking for ways to create the passive income to support it. You have to have a day job to pay for everything now but spend extra time learning about investments and stashing away cash anyway you can - IRA, savings, etc etc. No need to be in a hurry, it's a lifelong pursuit. It actually happens very fast but very fast is usually like 10-15 years. I'm 42, bought my first properties when I was 28. 14 years goes by fast. 6 more years and I'll be an overnight success at 48 years old. I can talk more later but be careful about buying thing by yourself. Single family rentals aren't as easy to deal with as it would seem. I'd look for larger syndicated deals or REITS. Gotta run for now.

I think the safest passive income is real estate b/c that's what i've done my whole life and understand the best. Some people own cash cow businesses that truly operate without them. Others own huge numbers of franchises. dividend income can be described as passive as well, or bonds but those are extremely low right now and I don't like those because when yield goes up your principal is eroded, sometimes very quickly. Again, I only see what I see b/c of what I do for a living. Royalties, that's another passive income stream but there's usually a timeframe or life to those and then they die out. If you underwrite a real estate deal properly and budget for capital expenditures, tenant turnover, leasing commissions, proper management, and everything else then it's the gift that keeps on giving. Pay too much for it, choose the wrong location, figure the expenses wrong and you're dead - the risk is in knowing how to do it correctly. www.promanas.com I should have made my user name Promanas.

There is no amount of money (as a lump sum) that will make one comfortable enough to alleviate financial stress. Instead, it's far better to think in terms of passive income and ability to create income. For example, if you were to own 15 homes free and clear of any debt and they rented for $1200/month each generating $600 after all expenses and a vacancy factor, you'd be getting $9,000/month. If you're monthly living expenses are 7000 then you would be very wealthy. If your expenses were 12,000 then you'd still have a bit of work to do but you would be well on your way. The ability to generate income must come first, then investing in vehicles that provide "passive income" would come next. www.promanas.com