What does passive income really mean?
Is it something that I should have? Do I need it? How can I get passive income?
In a previous article I stated that, if you want to become financially free, the only way to do that is to have a passive income.
Let me explain this;
For you to be able to pay your bills each month and put food on the table, which are the most basic necessities of normal life, is for you to have or earn enough money each month, being able to pay those bills.
Hopefully, you receive a little more money that to cover your monthly expenses. However, that is most often not true for the most of the people in this modern society. They often spend more money than they earn, putting them into a negative spiral of credits and loans.
For you to have financial freedom, you must have the option to choose whether to work or not for receiving money, and still receive enough money to pay for your desired lifestyle.
This means that you need to be financially free in one of two ways; either you have enough money saved or inherited, to live on – or – you need to have a continuous inflow of cash each month to cover your expenses. And this continuous inflow of cash is what is called passive income.
Passive, because you do not work in order to receive the money. Whether you work or not is not important, the money comes into your account either way. Therefor it is and income you receive even though you are, or could be, passive.
Now, passive income can be as little as $1 or more. It does not have to cover all your expenses. But when it does cover your expenses is when you are financially free.
In reality, even if you have a passive income, it does not just appear from a clear sky to cover all your expenses. You need to start creating your passive income from scratch. And the way to do that is by dollar for dollar.
DO I NEED PASSIVE INCOME?
No. You don’t need to have any passive income. You can manage and live your life by working your whole life, getting a salary, retire and hope you have enough pension money to live on.
But as the pension systems all over the world are gradually collapsing, are you willing to put your trust to the government to cover the necessities for your life? I wouldn’t!
If you want to live your life on your terms, being free to have a choice, I would suggest to get additional income besides your salary. Money that are in excess of what you really need for paying your bills. And the best way to get that additional income is having money come in, without you having to work for it – i.e. passive income.
HOW CAN I GET PASSIVE INCOME?
There are many ways you can achieve passive income. In most cases people receive passive income from some kind of business enterprise. Even if people start off creating passive income streams as a private person, you eventually end up receiving the income in a business anyway because of the benefits of a company.
You could write a book or music and receive royalties. You could create and education in something that you are really good at, and sell that education online. You could invest in stocks and receive dividend from that stock.
There are thousands and thousands of examples of ways to receive passive income. You only need to figure out what skills and expertise you have that would benefit someone else, and which you can receive payment for. It is all about providing value to other people.
YOU NEED TO INVEST
Whatever you do to start creating your passive income, you need to invest in something. Either you need to invest your time and effort in something, like a network marketing company, or you need to invest your money, in order to finally receive a passive income.
Let us summarize:
Passive income is money or cash compensation that you continuously receive, without actively working for it. You need some kind of passive income to become financially free.
And since passive income is the prerequisite for being financially free, which gives you freedom to choose in life, you should start creating passive income streams as soon as possible.