What Is Passive Income And How to Create It (Easier Than You Think)
Let me say something about money before I explain what is passive income.
Money is not everything. However, we can't live without any money. Without money, we can't buy foods, houses, cars, and daily used products which means we are not able to survive in society if you don't know how to make money. Therefore, people in today world are always chasing around for money and wishing money will flow to them automatically. You're not exception.
You must be ever struggled to wondering how to increase your monthly income. Whenever you're going to spend lots of money for something, you must be wishing that your figure number in the bank account can be added two more zero at behind. Me too, this is so called great mind thinks alike. lol.
If you want to increase your monthly income, the first thing you should do is to know what kind of income now you're earning. Generally, income can separate to two types of income, one is active income and another one is passive income.
So what is passive income?
The meaning of them is like what their name mentioned, active income referred to the income earns from active way, such as working in a company, doing your own business — all kind of way which needs you working hard. The way to increase your active income is only one, do more work. The more work you do, the more income you'll earn.
Passive income is contrary to active income. Passive income referred to the income you earn even when you aren’t actively working. For instance, although you're traveling in other country, you're not working within this period, but each month your passive income will continually send into your bank account.
Passive income doesn't stop even if you're not working. Examples of passive income is monthly property income, your online business, multi level marketing, franchise, and insurance.
Passive income is a very important idea if you're serious to increase your income. You're not going to be wealthy by earning active income. Even if you can earn lots of money by it, you'll not have your own time, all your time is taken to earn money.
Here's a book I recommended to you if you want to build correct mindset of passive income, which is the famous book " Rich Dad Poor Dad". Don't ignore this book if you really are serious to earn more money. If you don't have correct money beliefs, then you'll never be able to attract money, let money flows to you.
Why you want to earn passive income?
As mentioned earlier, active income cannot help you to achieve the goals of having money and time at the same time. Only passive income can help you to do this. Therefore, here's one thing have to say before you continue to read the followings.
If your dream is working in a company with high salary, and never think about to build your own business, then you can leave this page now. No one can help you to earn more money.
A man who is not willing to learn how to earn passive income will never be able to retire young and retire rich. Working for others is a kind of active income, and if this is your dream, you're not ready yet to earn your passive income. Before that you need to install the correct mindset of money, your thought is your world. If you don't believe money can flow to you automatically, then it really never flow to you.
And then ask yourself honestly, why you need to learn to earn passive income? What can passive income bring to you? The more specific answer you have, the higher chance you'll achieve your goal. Your answer will be your motivation, when you're down it will push you at your behind, support you to overcome the barriers and succeed eventually.
Benefits of passive income
Earn your time
In fact, the main purpose of passive income is not to earn money. You don't need so much money, you just need the enough amount of it to cover your monthly expenses. Although you owned several houses, but you only sleep on one bed. You don't need so many houses, you just need one.
Therefore, the main purpose of passive income is not to earn more and more money, but to earn your time. Otherwise, that's enough for you to earn money through active ways.
Through passive income, you don't need to spend all your time on working to earn money, money will flow to you automatically. Don't spend all your time on your work, you need time to experience your life.
Spend time with your loved one
If you've built your passive income streams, then you'll have your own time to spend with your loved one - family, spouse, girlfriend and friends. If you don't have your own time, then how can you spend your time to accompany them?
Especially your parents, your parents are getting older and older. They're not young anymore, and may past away without your expectation. Earn your time to spend with them is what a good son should does. Don't make yourself regret in future.
Do what you like
If you have a 9-5 job, then your available time is mostly at night. You don't have enough time to do what you like to do. And you don't have time to exercise such as jogging, cycling, running and others.
Passive income allows you to do what you like to do at anytime you want, because you don't have to spend your whole day working in office. You don't need to worry about the money because money will flow to you automatically. You can pursue your dream, do your hobby, such as traveling around the world without worrying the income. Nice.
If you have free time then only you could be able to experience your life. Life is to experience, not only to earn money. You have your own time to chit chat with friends, do what you like, try new things, free from stress and blah blah blah.
And compare yourself with the people who need to work daily, sit in the office from 9-5 just to earn money to cover their monthly expenses, your lifestyle is healthier a lot than them. This only can be achieved by building your passive income. Of course, this is an exception to the people who really enjoy to stay and work in office whole day. Everyman has his taste.
How to build your passive income?
Here's the part that perhaps you're most interested at, how to build your passive income? Passive income can build in many ways, the popular ways included property income, multi-level-marketing and insurance.
These ways are popular because they are successful business model that can easily help someone become wealthy in a shorter time. Especially multi level marketing and insurance, they don't need big capital and special skills. Ordinary people can be successful with these businesses if they give in some efforts.
In recently decades, a new form of passive income is invented due to the development of Internet, which is making money through online business. Making money online is not that hard and complicated as you think, it's easier than you think. You just need to provide solution to solve the problem that people are suffering, then you can earn money from them.
Majority of people thought online business needed specific web building skills, or outstanding knowledge to be successful. However, it is not correct. All people have their ability to help others to solve problems. What you need to do is just find out these people who need your solution and provide it to them. Not that hard, right?
Above are some ways to build your passive income. You can choose one of them according to your circumstance and personalities. Build your passive income early, don't wait and let your time pass. Earn back your time to construct your own life now.
About the author
Rio Yee is the Founder of WealthyLoveLife and is super passionate about helping people change their mind and take action to improve your important areas in life such as dating & relationships, personal finance and productivity.