What are the benefits of passive income?
I want to go over the benefits of passive income. When it comes to our incomes, we are usually taught to clock in and work for our money from 9-5. We do not learn how to put that money to work in a business system that we invest in or a system that we build. So I want to talk about the benefits of passive income and why you should pursue it.
more time freedom if not flexible
A lot of people want to spend more time doing other things other than going to a nine to five job and spending time with people they probably do not like or are not close to. This can be things like traveling the world, going to their kids little league game, or getting to spend time with an aging parent.
But the fact is, people are not going to be able to do this unless they free up their time. Whenever you make passive income, you do not have to ask your supervisor to take time off. The fact of the matter is, the business and the system that delivers passive income will work while you are away.
location independence
For those who do not want to stay in the same city that they grew up in, this is another reason to build a passive income stream. Doing so allows you to live in any location you want. When most people think about changing locations, they usually have to look for a job around that certain location and save up at least 6 months worth of living expenses. On top of that, if nothing pans out and they run out of savings, they usually have to move back to the city that they tried to get out of. With passive income, I can change my location just like I change my underwear. And i would be able to do this because I have money on me at all times coming in every month no matter where I go. Even better, I don't have to move back to the city I came from if things didn't pan out.
A traditional job on the other hand forces you to work in a specific location. You can't have a job in San Francisco and live in Las Vegas. Its not possible, and I highly doubt that anyone is going to try doing a commute from Vegas to SF.
unlimited income potential
With passive income, I am able to make in theory infinity dollars on an annual basis. In other words, I can make as much as I damn well please (Sorry for the language). My income is not capped by a ceiling. If I am not happy with what I am earning, I can always build another stream of income in order to raise my income level. As an example, if I was investing in stock for dividends and I want to increase my dividend income, I just buy more dividend stock. If I was a real estate investor, I just buy more income generating property.
With traditional corporate america, my income is capped on many factors including
- type of career (schoolteacher vs. petroleum engineer)
- the max amount a company is willing to pay you
- the highest amount a certain highest position pays
An employee can only earn so many raises throughout their entire working lifetime before they reach a ceiling and the raises stop coming. If the highest position you can reach at most is manager and manager only makes $60,000 a year. I am stuck at $60,000 a year. That is my peak earning.
choices in lifestyle
With unlimited earning potential comes the possibility of any lifestyle that I choose. I say this because not everyone cares about having a nice boat or an 18 bedroom mansion. But, if I wanted that kind of lifestyle, I am free to pursue it. After all, whats going to stop me? Money? If I didn't care about living the "rich" life, I am also free to pursue the traditional 1 bedroom apartment and Honda Civic lifestyle as well because I would be able to have more than enough money to obtain it as well.
When your income is capped on the other hand, so is your choices of lifestyle. You can't buy a mansion on a $60,000 a year salary. You can only get a lifestyle that is $60,000 a year or less. Your choices are capped by your income.
don’t have to worry about downsizing or firing
This is a big one. A lot of people live their lives day to day as if they will not get cut off financially from their employer. All the while, that is exactly what they are fearing. The day they possibly get laid off. The reason being because they lack control over their income.
With passive income on the other hand, your income has a better chance of surviving because your income is contingent on whether your business produces income or not. Not on whether someone says your fired or not.
So with all these benefits of choosing passive income, why would you not choose to go out there and build a passive income stream? It is much cheaper to do especially in the age of the internet. In fact, thanks to the internet, many people have been able to do things like spend more time with their family with the help of affiliate marketing.
Do you see other benefits with passive income
Recent Comments
18
I’m thinking the other way is the only way they have been taught. They don’t know that passive income is another way which we find to make income. I only started wanting to achieve it around 3 years ago
Hi there
Many thanks for this great and inspiring post
It's something that all of us here at WA strive for, I'm sure.
You have made some valid and key points in this post and I am sure that the members like myself will get some real value from.
Btw, I Googled your post (Benefits of passive income) over here in Ireland ( Google.ie ) and unfortunately you did not make it on to Page 1...instead you made it into Page 2 at No. 3
So therefore you made it to No.13 for a search result of over 1.5M
See the attached screenshot..
I don't know if you are aware that our posts here at WA go out onto the great www and who knows where they might be read or seen.
Fyi, it might be a good idea if you inserted your WA link into these inspirational posts going forward ( we are allowed to do that here at WA ) Someone somewhere may just click on them.
Cheers and best wishes
PB
Thanks Phil for heads up. I am actually aware that our posts rank and hence the reason I started writing keyword targeted posts on my personal blog. I learned it from another member here at wa and have tried it myself. But thank you for reaffirming that I am doing something right.
There's so many benefits of passive income Jessie, you are so right! Who doesnt want it all and there isn't one of us that doesnt deserve it I am sure! We all need to believe that!
I have a genuine passion to do something for others. It seems 5 minutes ago that my mother was feeding us butter and sugar on white bread sandwiches, ok thats not a great memory. It was a struggle for parents.
I worked hard to get through schools, city & guilds, ONC, HNC, BSc, MSc, AcostE, worked hard, played hard travelled the world along the way. I have come back to learning and it's so inspiring to learn from you guys.
I can't work out what direction I am going with my niche yet but the ingredients are here for success, an excellent platform, passionate owners, enthusiatic knowledgeable members and some great posts and of course our own imaginations!
I am certainly going to stick with it! Brilliant post thank you!
Wayne
I know the feeling of parents working hard. I just think it sucks that they have to do it at the expense of missing memories such as your toddler taking their first steps. You don’t get that back. But at the end of the day, there heart is in the right place as far as why they had to miss out.
You have a very wise head on your shoulders Jessie. Many people only believe that to get money they have to physically 'graft' and the result, they miss those earlier years.
It's a brilliant concept of earning passive incomes and I'm certainly trying to develop something different from my norm.
A great post and many thanks!
Wayne
Well-written article with effective images, Jessie. Reminds me of the important reasons why I continually push myself to get passive income going. Thank you for sharing!
Jamie
What a great review of passive income. You have just reinforced why I am doing this - freedom to choose. At the moment I am tied to my home, my job, my life because I don't have the money to do anything else. That is what I want out of being here at WA - a way to build a passive income that I can work with from anywhere in the world. If I want to spend six months travelling around Europe, if I have a great website, with money coming in, and I can get an internet connection to update my site, I can work from anywhere in the world. Or I can just stay home and do the same thing.
Great blog post to remind me why I am putting in the work on my website.
Regards,
Megan
See more comments
Absolutely! I love these passive streams of income.