Understanding passive income
Feb. 22, 2021
On the blog today we look at what passive income is and why you should make passive income.
Do you dream of financial freedom but do not know how to make that dream a reality? This is what T.Hary Eker says You must have heard this before: “You can only be financially free when your passive income exceeds your expenses.” What then is passive income?
Passive income is money you earn in a way that requires little to no daily effort to maintain. This type of income generates on its own and gives you room to focus on your business, your paid job, or any other main source of livelihood. Examples of a passive income include rent from a second property, dividends from shares, and investments.
In our growing world today, most people desire to make more money in a very fast and easy way but have no problem working two to three extra jobs daily plus a weekend equally filled activities that requires time and a lot of energy. This way of making money may look productive but it can equally be stressful and may wear you out early. Working hard but smart is the best way because remember, time is running.
Unlike money, we can’t earn back the time that’s already been spent, once it’s gone, it’s gone. Also, to be financially free, never depend on a single income. There is a saying that goes; “never put all your eggs in one basket”. Not to sound pessimistic but what happens if you lose your only source of livelihood? Do you have a plan B?. It is always better to have income coming from multiple places so that you constantly stay afloat if one source of income dries up.
Lastly, if there is one good way to start your passive income journey, then motivation from successful people helps. Find out what they did, how they made it, and apply that knowledge by using it in the right areas to grow your business in the most effective way, thereby creating the freedom you desire.