Create passive income
Independent workers are well-positioned to use their expertise and self-starting skills to create passive income streams to subsidize their retirement. Passive income can be broadly defined as the revenue you continue to earn on a product after the initial investment of time or money has been completed, says Tresidder.
"Since the solopreneur owns his work, he can design his business to create passive revenue streams over time," he says. Examples include writing books, building a profitable website or creating a video series to sell through your business.
Tresidder notes that creating passive income takes the pressure off building an enormous nest egg for retirement exclusively from your active income. "Every $1,000 of monthly passive revenue roughly equates to $300,000 in retirement savings," says Tresidder. "Most solopreneurs find it easier to create $1,000 per month of passive revenue than to save an additional $300,000."
Not that it's easy to reach this point: "You have to be willing to commit the time and energy to create quality products," he says. Nonetheless, once you've figured out how to earn passive income, he says, it's easier to multiply that income than to grow existing assets at the same rate.