Saving Money as Passive Income

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As I have become more excited about this idea of passive income, I am exploring many of the the blogs out there relating to the subject. I ran across something that gave me a new paradigm for some of my thoughts. Saving money can be considered passive income.

Look at it this way, If I reduced my expenses to zero dollars, then all of my income would be disposable income. Therefore every dollar I save is one more dollar of disposable income. Perhaps ol' Ben Franklin had it right; "A penny saved is a penny earned."

I do not believe it would be helpful to include money saved in my passive income statistics. In addition the one drawback to this income stream is that it is finite. Once I reach zero expenses (yeah, that will happen), The stream is capped.

However, I can certainly do some things in my life to save in this manner. I am terrible at paying things on time, I could easily save fifty dollars a month in late fees. I also should consider getting a roommate. I live alone in a two bedroom apartment, and saving half of my rent could sure help. Just these two changes would increase my monthly disposable income by $450.

I know this is not some revelation in income generation, but some food for thought.