Here is the full transcript of entrepreneur Alex Szepietowski’s TEDx Talk: Design Your Dream Life Through Passive Income at TEDxUniversityofYork conference.
Listen to the MP3 Audio: Design Your Dream Life Through Passive Income by Alex Szepietowski at TEDxUniversityofYork
Alex Szepietowski – Entrepreneur
The average person in the UK has only 11 weeks’ income saved in the bank. How much do you have saved? How long could you live for if your paycheck stopped coming in? Maybe you never thought of that, and it might be a little bit scary to think about.
Today I’m going to share with you about passive income and how to design your dream life through building up your passive income streams.
Designing your dream life through passive income has got a big claim. You should be like: Why is passive income important to us and what is it?
Well, in October 2012, I knew absolutely nothing about passive income. I was here, it’s like you’ve said I was at B Block at Derwent Uni and I knew nothing about passive income. I knew how to make income, I knew that you go and swap your time for money, that’s called active income or earned income. And it’s what you do when you get a job. And that’s what 99% of us in the world do.
The opposite of that is passive income, or recurring income. It’s where you do the work once and you continue to get paid recurringly for very little or no actual work. When your passive income, recurring income, exceeds your cost of living, what you spend on food, utilities, petrol, all that kind of stuff — when your passive income exceeds your cost of living, you are then financially free. And if you happen to lose a job or not get a paycheck you can live infinitely forever.