The Importance of having Passive Income Sources
Passive income is income that is received automatically with little maintenance requirement. Active income on the other hand can be earned only by directly earning money in exchange for your time. Whether it’s an hourly task or a salaried job, the amount of money you make is directly proportional to your time.
With active income, when you are not working, you cannot earn. If something happens to you and you are incapacitated for any reason due to injury, illness or any other disaster, you will lose your ability to earn money. For instance, if you are an athlete and you sustained an injury so badly that you cannot continue your profession; you will not be able to compete and earn money.
Reasons why passive income is so important
#1 – Passive income gives you freedom of time
Time is our greatest wealth. In fact, time is more valuable than money. Though money can be earned and spent, time can only be spent once. After such time passes, it will never return. You will never be able to relive that moment. For this reason passive income is very key, it offers you freedom of time. You have free time when you are less constrained by the need to earn only to meet your monthly financial needs.
This does not mean that you have complete freedom from all obligations in life; it only means that you have the flexibility that comes with not having to struggle to make ends meet. As long as you can make sure that your passive income exceeds your monthly expenditure, you can make use of your time as you like. With each new stream of passive income, your income will eventually supersede your expenses, and eventually you’ll achieve true financial freedom.
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- Reduced stress, anxiety and fear of the future.
There is nothing worse than the stress of not being able to pay your bills. It causes anxiety, fear, and a general hopeless despair about the future. Hypothetical scenarios start to wrap around your mind, like a hawk circling over its prey before pounce on it for a kill. It affects you physically, mentally, and spiritually. It hits you emotionally and destroys your aspirations and hopes.
Every time we live in a terrible fear of the future, it is difficult to be present. It’s hard to enjoy what we have here and now because we are so attached to those horrific scenarios. We are so concerned about the impending financial meltdown that it is difficult to free ourselves from the chains of this train of ideas. It consumes you and it’s hard to walk away when that’s all you have in mind.
#3 – It allows you to keep doing the things you love instead of what pays the bills.
We all have things to get excited about in life. But we always seem to leave them for a later time. Whether it’s music, art, or travel, we can realize our fantasies when passive income sets us free from debt that ties us to the continuous cycle of payments. It allows you to break out of the proverbial rat race by rising above all the things that so-called “normal people” worry about.
It also frees you up to make an active income by following your heart. When your passive income exceeds your debt, why not get involved in a project that interests you most? Maybe you want to help out at a downtown homeless shelter that can’t afford paying you. Probably you want to render some services to a community and they can’t pay you much. Whatever it is, you can do it because you don’t care about your paycheck.
#4 – Gives you the ability to live and work from anywhere.
If you have a deep passion for travel, passive income will help you afford the luxury. But the problem with travel, for most people, is that it is temporary. It is a temporary state of happiness that seems to come and go very quickly. But it’s not just about taking a week or two off work. It’s about really traveling the world with the freedom to work from anywhere.
When you have passive income, you can go to a city like Bangkok, Chiang Mai, Berlin or any other place on the earth to live and work.
- Passive income Provides a platform for financial growth and stability.
When your income is passive and you don’t have to worry about making ends meet at the end of the month by replacing your immediate time with money, it allows you to think and explore new ways to enhance your financial stability and make it grow. It gives you time to research things like stocks, taxes, and other investment opportunities. This helps increase your financial intelligence, and helps drives you toward your financial goals.
It’s easier to focus on your money when you’re not drawn to many other directions. Though problems can arise in your life, financial or otherwise, you will be better prepared to deal with them. Without having to rush to get a job you dread every day, you can train your brain on the things that will over time bring you the most growth and prosperity.
Get a free eBook here that teaches you how to set up a highly profitable passive income stream and sign up for an email course that will teach you how to start a passive income business.
