The Reasons For A Passive Income
You have probably heard the term that time is a precious commodity. Each one of us is given 24 hours in a day. What we do with this 24 hours will determine how your life will turn out. In this article, we will look at how having a passive income will give you the freedom of time. You will see how your time is not lost due to work. Through passive income, you will have multiple streams of income pouring in even while you sleep.
You may have heard of the 168 rule. This rule is a great way to look at time.
One hundred sixty-eight is the total number of hours every one of us gets in any week. No more. No less. What separates the ultra-successful from the mildly so is what each does with this number of hours. The ultra-wealthy and incredibly successful all live extraordinary lives. How is it that Sir Richard Branson can own multiple companies and still find time to become an expert kite surfer, while many of us stress out because we can’t seem to balance our careers and the many other facets of our life?
Time, once it has gone, it cannot be re-created or brought back. Once it is gone, it is gone for good. Therefore, passive income is so vitally important to each of us. Therefore, time is such a valuable commodity.
Money can be earned, spent, saved, invested, stolen, lost, or tucked away for an emergency or for a rainy day. But time, it cannot be saved for a rainy day or tucked under the bed. We cannot take time and make more of it like we can money. If you lose money, you can go out and make more. When time is gone, it cannot be replaced.
Most of us eat and sleep in the free world. The cost of living in the free world is that we have to work in order to put food on the table or money in the bank. Unfortunately, work consumes much of our precious time each day. This precious commodity called time needs to be nurtured and savored.
This is where passive income comes into play. The rich get richer by tapping into passive income and use it to build wealth while they do not consume their precious commodity time.
A famous saying, make money while you sleep is called passive income. When you operate the principle of making money while you sleep, you are literally building wealth while you are awake and asleep. It is an automatic wealth-building machine that operates 24 / 7.
While this is all true, it just does not start with flipping a switch and you make a passive income. At the beginning of this trip, you will need to put in some blood, sweat and tears to get the machine running. You will feel frustrated, scared, and overwhelmed. Put in an enormous amount of effort and self-taught education while you are learning the business. This investment of time will prove fruitful and well worth the effort of your time you have invested in order to make the passive income machine work 24/7.
Passive income will not solve your immediate financial troubles. It will set you up on a pathway of financial freedom and build a foundation of wealth and overall happiness. When you are released from the stress of living from paycheck to paycheck, you will feel a mental release of stress and you will enjoy life the way it should be. You can take off the shackles of being a slave to the 9 to 5 job world and you will live a fulfilled life.
Life is not meant to be a slave to a job. Life makes your own decisions about spending precious time with your children or grandchildren, taking a trip around the world, helping those in need, or spending quality time as a family. When you can do these things and you can decide about what you want to do, then you are free.
Don’t you think itis time for you to decide to be free? Isn’t time to break the shackles of slavery that have you bound to the working world? Isn’t your family worth more than what you can give them now because you are shackled to a job?? I would hope and pray so. If you are truly serious about cutting the shackles and setting yourself free, then you are the perfect candidate to embrace the machine called passive-income.
Now that you have determined that you want to break these shackles that hold you to being a slave, let’s look at what this machine is and how it works.
What is passive income?
Like what we talked about above, passive income is income that comes to you automatically without having to spend every waking minute working. When we spend time at a job, either hourly or salaried, this is an active income. We are actively doing a job and getting paid to do it. This is how most people make an income in the free world. When you work, you earn a paycheck.
One serious problem with active income is when you don’t work, you don’t make an income. If you become incapacitated for whatever reason and you cannot work either from an illness or injury, you cannot earn a living and you will lose your ability to bring home money.
Here is an example — I was physically injured a few years ago. I spent time in the hospital and I could not perform my job function for a very long time. All this time, the bills kept coming to me, but I could not work, so I had no income flowing into the household to pay the bills that kept coming.
Most of us middle-income people live this active income scenario, while the wealthy have various avenues of income that stream into them from different sources. The wealthy also uses multiple streams of income instead of just relying on one stream. The reason for this is that the one stream can dry up and by having multiple streams they will always have a flow of income.
What do multiple streams of passive income look like?
Streams of passive income could be like, Real estate investments, rental properties that pay a monthly income, dividends on investments, royalties fees, franchise fees, blogging income, online advertising, affiliate income, storage rentals, peer-to-peer lending, sell on-line books, pay per click advertising and so on.
Now, in order to have a passive income, you will need to:
Invest upfront a monetary investment or
Invest upfront with your precious commodity, time
You cannot have a passive income unless you provide and lease one of these.
Now you cannot get away without investing a tremendous amount of time if you don’t have a financial basket to pull money from to invest. While you are putting in the time, you will not be receiving an income right away. You will invest your precious time in order to reap the rewards down the road.
Now, with active income, you get paid for your work and you earn directly, as it correlates with the time you work. But passive income will continue to pay you long after the work has been completed, and it keeps on coming in.
How to make a passive income.
There are several ways that a person can make a passive income. Whether it be through investments, or making money through affiliate marketing of selling advertising online or an old traditional way is through real estate rentals. Each one of these can be done, but at first, it will be difficult and scary. While you are working on building your stream, you will see more the importance of having a passive income for your family.
How to start?
First let me say, we do not advocate that you give up your active income employment right away. Most people cannot afford to do this in the beginning. It would be nice to in order to dedicate 100% of your time focused on building your streams of income. But, most people have debt obligations or no financial means to cover their bills during this time.
Here are some reasons it is so important to have a passive income.
Freedom
As previously discussed, time is an asset that we cannot get back. Time is money and for many times, is more valuable than money. Time with family and enjoying life is something that we waste every moment that we are working actively. When each second on the clock goes by, it is gone for good. A passive income gives you an income to pay bills and enjoy life while you are having fun or sleeping, or traveling.
This does not mean that 100% of your time is free, it simply means that you will have the flexibility to do what you love without being shackled to a job. When you can get your passive income revenue to be more than your financial debt monthly, then you can ultimately attain true financial freedom.
Right now, we are shackled to our jobs, which most of us despise. When you can set yourself free from these shackles, you can be free to do as you please. Not everyone wants to travel the world or spend time with family, but you will be free to do what you want when you want. Your dream may be to continue to work, but work as you want and on what you want. The choice is yours. This is what passive income can give you, Choices.
Better lifestyle
There is not a worse feeling than sitting and looking at your bills and seeing that you do not have enough money to cover them. This brings into your life anxiety, depression, anger, and many other health-related issues. When you are in a spot where you cannot pay your bills, this does a job on you mentally and physically. Over time, this will cause many future physical problems to occur. Negative emotions destroy your dreams and aspirations.
Having passive income takes these worries away. I just heard on the news this past week where the number one fear around the business world is losing their job or corporate downsizing. I see this all the time where positions are being eliminated and not re-filled. Corporations take this work-load and force other employees to add these job duties to what they are already doing, many times with no additional compensation. I also heard that over 75% of employees around the US have not seen a pay raise in 4 years. I can attest to this one. Passive income eliminates these fears and the feelings of you are stuck in a dead-end job. When you get to the place of financial freedom, you will be mentally and emotionally set free. This will give you more energy and motivation to continue to build your empire.
Passive income allows you to pursue the things you love.
We all have passions and dreams. But we are always putting them off to a later time. Whether it be travel, vacations, art, music, golf, or whatever else it may be, a passive income can make these things come true. I live in the retirement capital of the world called The Villages of Florida. I sit back and watch some 150,000 people a day enjoying their dreams. These people play golf, fly model airplanes, fish, ride around on their $15,000 golf carts, their passive incomes allow them to do what they love.
A passive income gives you the ability to work from anywhere.
One of my passions is blogging and writing. I always have had the passion to write from where ever I am at. If it sitting in the woods of Minnesota or in a cabin in North Carolina or sitting in the Alps of Switzerland, I want to have the freedom to do this.
When you hold an active income job, you are limited to when you can travel and for how long. A few years ago, my wife and I went to Italy for two weeks. The trip was wonderful, but then I had to wait another year and a half before I could take any time off again.
By having a passive income, I can hit the open road whenever I want and go for however long I want. Life on a passive income gives you the freedom to do this.
Passive income gives you financial stability.
When you are not focused on making enough money to pay the dreaded bills monthly, you will have the time to explore and research ways to expand your income. This could be through saving on taxes, investments, or other business options. By having these financial thoughts will help keep you motivated to think of other financial streams.
Conclusion
I cannot think of any reason people do not make a passive income for their families. Maybe they are pulled in so many directions in life or are consumed with trying to make enough money to pay their bills that they cannot focus on making changes for their families. I think many people discount the idea of passive income because they just don’t understand the concept. I believe if the mind can believe it, the mind can achieve it as well. The biggest thing is, don’t give up.
You need to set some goals and be persistent in acting on those goals daily. There is a bright, shining light at the end of the tunnel. Remember, this is not an over-night dream. It will take time, but in the end, you will bear its fruit and enjoy the rewards of your labor. It all depends on how badly you want a passive income and financial freedom.
