If you are like most people, you probably have an ordinary 9 to 5 job. The problem with an ordinary job is that you are trading your limited resources – body, time and energy – for a fix amount of money.
Because you only have one body and a limited amount of time in a day, you can only make so much in a day. How much you make a day is largely controlled by the principles of supply and demand of your labour.
The problem is that if you don’t work – because your services are not in demand, you don’t have, or your body is not available; you don’t get paid. You only get paid when you are working. And if you don’t get paid, you can’t put food on the table and do things you want to do.
That is why passive income is important for you – so that you continue earning an income even if you stop working for a few weeks or months.
Passive income is not just about money, but it also about your freedom to do what you want to when you want to do it.
Passive income will give you that freedom.
However, as we all know, there is no free lunch in this world. This means that, initially, you will have to expend a lot of time and energy developing your income generation idea or concept.
Once developed, the idea can be used to generate on-going income with very little effort from you side.
What is passive income
Sure, turning a passive income idea into a revenue generating stream does take a lot of work and time, or money in the beginning. But once you get the ball rolling, it will be well worth it.
Why do you need passive income?
If you are one of those people who you earn a big and fat salary, then you probably think that you don’t need passive income like most of us.
However, it is a fact of life that if you are an employee today and working for a big or small organisation, there are no guarantees that you will have a job the next day. Job security is gone, it does not exist anymore.
Moreover, all shareholders in private companies want to maximise their profits, and so they try their best to reduce the costs of running a business
Unfortunately, your salary is a big part of the costs of running a business. So overtime, most people will start earning less and less as the shareholders squeeze the slice of the pie available to employees.
Hence, to depend on your job only for an income, is not only very risky, but is also irresponsible.
In my opinion, there are 2 main reasons most people need to work towards generating their own passive income:
- Create more free time for yourself in the long run.
- Become financially independent and stop depending on some else (employer) for putting food on the table.
Ways to earn passive income
There are many ways to earn passive income. Many people are doing it through various means while they are committed to full time jobs.
Earning passive income does not mean you get something for nothing. For example, there are full time employees who earn passive income from owning properties that they are renting out. They obviously worked hard before they could own those properties. But now they spend very little time managing the property.
The following are more examples of passive income streams:
- Create or build your own product and outsource the manufacturing, marketing and distribution of the product.
- Create on line video courses and monetize them.
- Write eBook and sell it over the internet.
- Use Peer to Peer lending and earn high interest income.
- Build-up an investment portfolio and earn dividends cash.
- Invest in property and earn rental income.
- Create an income generating website.
As you can see, most of these ideas require massive amount of effort and/or money over a long period of time before they can be turned into an income stream.
However, everyone should have a property and equity investment portfolio. If you don’t have it, then you should start building it now. It is never too late to start.
Generate Online Income Using a Website
Out of all the seven income streams examples I mentioned above, the cheapest and the easiest to implement is the last one – creating and generating income from your own website.
Easiest does not mean there is no hard work involved. It simply means it does not require as much money, time and effort as the other 6 examples. You can start and run your website by just putting in 1 to 2 hours of work a day.
Your website will require you to write content relating to whatever you are interested in or passionate about.
Unless you are content with depending on your job or employers for living, then I suggest that you immediately register for the BEST EVER online training for an income generating website I have ever come across – Wealthy Affiliate. If you are serious about working towards a passive income, then come along and learn more about Wealthy Affiliate.
In conclusion, unless you are running your own business, then creating passive income is compulsory for everyone in my opinion.