Financial Passive Income
Have you ever thought of keeping on earning money while doing nothing? Isn’t it a great idea? Yes, it is. All of us want to earn and keep on earning money in abundance without doing a job or work. Some people may feel this thing like a dream, not reality. But, it is entirely possible. However, it needs a lot of intelligence, smart work, the right usage of time and energy, experience and knowledge, and a long journey, no doubt.
Service-oriented business owners sometimes struggle with not having enough hours in the day to tend to all the aspects of their business while generating sufficient income. Business owners can prevent burnout and enrich their business, by finding ways to create passive income.
Risk of burning
Service providing business owners also face the risk of burning out if they take on a large case-load which demands large amounts of emotional, physical and mental energy. If you have a service-oriented business, much of your time is dedicated to quality interactions with clients or patients where you are fully engaged and fully present. You want to give your full attention to and use best practices with each client or patient, and this can become draining if your caseload is too large.
Personal finance advisors are always talking about how to become indeed financially free; you must have enough passive income to exceed your expenses. That’s great, but what is passive income and how do you get it?
In its purest form, income can be broken down into four categories: earned income, portfolio income, leveraged income, and passive income.
Earned income
is income that requires you to show up to get paid. Money is derived from your time and energy. This is how most people earn their living – as an employee.
Portfolio income
is the interest, dividends and capital gains that come from the ownership of stocks, bonds, and mutual funds.
Leveraged income
is created when one activity earns more money with larger captured audiences.
Passive income
is income that requires an upfront investment and keeps paying over and over while the required involvement dissipates. The initial effort creates a cash machine that brings money many times over, though the participation becomes minimal.
So what is passive income? It is money that is made without you working for it! The goal is to have enough passive income to live off of so you don’t have to work unless you want to, just imagine that. Passive income does not mean a retirement fund that you can maybe tap into fifty years from now that provides limited income. If you are dedicated and make smart financial choices, you can have economic freedom before that with more security
As you can tell from above, earned income only pays you what you put in. In other words, it requires your time and. You can earn raises and promotions, but your income is limited because there is only one of you.
Multiple Steams of income
With passive income, on the other hand, you can create multiple streams of income that continues to bring in money long after you did the work once. As you continue to add more and more cash generating machines, your passive income streams increase along with your wealth.
Generating passive income is a dream for struggling professionals who have to work hard to make some extra cash after handling all the living expenses.
Some individuals may prefer to work through their life, health, relational or business challenges at their own pace and in the privacy of their home. They could do this by purchasing an information product or automated program. As a service provider, you would then be able to spread your energy around to all the aspects of your business without burning out. It would also allow you to enrich your business, serve more people, and create sufficient income to continue serving the world in your unique way.
How one can create a passive income.
So, you understood that and want to take up on your passive income venture, but you are confused about how to get things rolling initially. If this is your dilemma, then do not fear even a little because in this article it helps you out with your problem.
Invest More
The word is that the economy and stock market aren’t necessarily dependable; however, if you are educated in the timeless investments or have an excellent brokerage manager, you should be able to make at least five percent return annually regardless of the economic climate. If you are perfect, you can make it ten percent. Set a goal and put a certain amount toward that savings fund each month. It may seem like a stretch but imagine if you can save a million dollars in your account. Most could live happily off half of that!
If you have a business, provide timeless products in different price points that you can sell during any economic time. This could be a book, an online training course or in a disk. This will provide additional passive income that can offset any economic downturns in the long run.
Sell the products of others
There is a new trend in marketing that is fantastic and worth investigating. It is called affiliate marketing. You promote the products of others and make a commission off the sales- sometimes up to half percent. This can be easy money into your pocket that you can then use for point a critical thing to note though; only promote the products you like, trust, and believe in. If you encourage low-quality products that you don’t use and for the sole purpose of making money, people won’t trust you, and it won’t feel right.
Real Estate
Another sector that gets a bad rap, but if you can afford to purchase a place and rent it out for more than you pay in fixed mortgage payments, that is comfortable passive income. Now is the time to buy while the rates are low.
In conclusion, if you are out to seek financial freedom, begin to shift your thinking to how you can make your money work for you, rather than you work for it. Ultimately if you create multiple lines of passive income, your financial struggles will be a thing of the past.
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