You may have heard of passive income before, or it may be the first time you’re reading about it. Either way, I’m sure it’s something that you’re going to want to learn to create because it can be really life changing.
What is Passive Income?
Unlike a traditional job where you essentially trade your time and skills for an hourly or annual income, passive income is a form of income that you get without working for it. It sounds like the dream, doesn’t it? The truth is with most passive income you’re going to have to invest a lot of time in the beginning, often for zero returns, but in the end you can create an income that keeps flowing without much or any effort on your part. Passive income could come in the form of a rental property that you purchase and rent out, a website that generates income from advertising where you hire an assistant to manage it, or even an online shop with all tasks outsourced. Passive income allows numerous benefits in your life, and here are the top 4 ways your life would change with passive income:
1. More Security
Many people create a passive income stream while they’re working a traditional job, so while they do have a salary or traditional income, the passive income creates extra security. It means that if any unexpected expenses come up, you’ll be able to cover them. An extra passive income and ensure that you are able to pay off your mortgage more aggressively, send your children to a better school or even eventually quit your job.
2. More Time With Family
If you manage to turn your passive income into a full time job, it will allow you to have a lot more time with your family when compared to a traditional job. You’ll enjoy considerably more flexibility, meaning that if your child is sick or has a special performance, you can be there for them, no matter the time.
3. Flexibility to Travel
If you have managed to turn your passive income into enough money to live off, then you can travel more often as you wont be tied to a traditional job. No matter where you are or what you are doing, you will earn an income.
4. Extra Money for Investments
Maybe you have created a passive income stream, but it’s not yet enough to quit your job and spend your days traveling around. You may want to use your passive income for investments to get yourself ahead financially. As it’s extra money, then you can use it in this way without changing your lifestyle. The extra money you invest now will make a considerable difference in 10 or 20 years.
Passive income can be really life changing. It can be hard to get motivated in the beginning when there’s no real returns, but spending the time now can completely change your lifestyle for years to come.