How much passive income are you earning? Do we even know what passive income is or why it matters? If you don’t know what passive income is or why it matters you are never going to be able to quit working. You will never be able to retire. Passive income is what allows you to get paid while not working. NOT WORKING.
The biggest form of passive income by far is Social Security. You work hard for years if not decades in your career in order to one day retire. And when you retire you expect to get back all of the money that you paid into social security. But lets get real Social Security is not going to be enough to cover all of your bills, monthly expenses and healthcare costs. The costs of living in the United States continues to rise and you are going to live a long life. you dont want to be struggling financially into you 60s or 70s or 80s. Passive income can give you the piece of mind you need in order to pursue your real life dreams.
There are so many reasons to build passive income streams. These are a few benefits of passive income and how they can impact your life.
Passive income gives you freedom from work to pursue other interests.
Do you want to be chained to a desk for your entire life? Or spend all day at the office or in a classroom. I love what I do. I am good at what I do. Buy my job does not define me. I have a life outside of my work and it involves family and friends and hobbies. I love reading books and learning, but being at an office all day leaves little time for that. I love traveling. Check out some of Travel Guides to see my adventures and learn about places to explore. If you invest well and make calculated moves you can build up enough passive income you can pursue that passions that you have been putting off.
Sense of security.
Have you ever lost your job? I have. It’s terrible. I lost my job and then my boyfriend broke up with me so I had to move out of the small house we shared. And this was happening after the economic recession of ’08 It was a really painful experience. And what made it worse was that sense of unkown. How am I going to make it? Am I going to be to find a job that pays enough for me to afford my apartment. I had to consider every option. But I did believe in myself. I knew that I was going to be ok, because I was willing to work hard. To do anything to make it. That was also the time I started thinking about multiple jobs. Multiple streams of income. How much better would I have felt if I multiple streams of income to prop me up when I had lost my single source of income. Money doesn’t fix everything. But lack of it can be very challenging.
Passive income uses the magic of compounding.
Passive income is working when you are not. It does something that you cannot do. Compounds. The most you invest over time the bigger you stash of money will get. If you have blog that makes money and you invest it, you have now have two sources of income. Add a YouTube channel and Podcast and that is revenue streams that will can grow your business to unlimited heights. You dont want to have to rely on your own strength your entire life. One day you are going to want to retire or travel or sit at home and watch NetFlix. Let your money work for you.
Travel anywhere and still make money.
Since passive income is created when you are not pysically there working on it, who says you have to be anywhere near it. The world has the internet now. You can travel the globe. Work from a cafe or your iPhone. This is one of the biggest reason that I am building my passive income streams. I live in Dallas aka middle of the country. I want to visit the ocean sometimes. I want to see the mountains in Colorado. I want to visit London one day and see that big clock. And I won’t be able to do that if I stuck at my desk all day everyday slaving away. Sometimes you have to turn off the computer and see the world around you.
You’re the boss.
This is one is so powerful. There is nothing like having a terrible boss. Having a boss that is always in a bad mood or constantly worried can make life miserable. Today, I love my boss and he appreciates the work I do. People don’t leave companies, they leave people. I once worked for a software company where my boss micromanaged every single task that I performed. He would yell at my if I had a meeting without him. He was scared that I was going to advance over him or around him or something. But one I finally could not handle it anymore and found another job. And when I left it was life they didn’y even notice or care. With passive income you make the decisions. You are the boss. You have to work hard to get it going, but then you decide what happens.
Maybe your thinking now: Collin I already know what passive income these things don’t apply to me. Have you talked with your friends and family about it? Do they know why it matters or how they can maximize their money earnings? Someone in your life needs this information. More than that they need to start practicing these principles.
Debt is bondage. Interest is the opposite of passive income. If you have credit card debt or student loan debt you are giving passive income to an institution. Your biggest goal should be to get out of debt.
My biggest advice is start making the investments today. Building up your passive income takes time and the longer you wait the more you will miss out. You dont have to be perfect, but you have to start.
If you this article impacted you in any way share it with someone. And leave a comment. I love hearing your point of view. Don’t be shy.