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“Don’t let making a living prevent you from making a life.”
Said John Wooden. The guy lived for almost 100 years.
Does his statement seem relevant to your current lifestyle? Have you ever wanted to change or improve your financial dependency?
I’m not talking about getting a raise or finding a better-paying job. I am talking about taking control of your finances and living the life you want to live, rather than one that is dictated by someone else’s expectations.
People who don’t have or earn a lot of money may not be able to save for retirement. How are they supposed to live when they can’t work anymore?
What if I told you that there was a way to make money without having to work for it? Would you be interested in learning more about how passive income can help you change your financial future? It’s true! Passive income is the most effective way of making money with less effort.
Related: How to Make Money While You Sleep
What is passive income, and why is it important?
Passive income is any money you make from an investment, property or business that can generate earnings without requiring additional effort on your part. Passive income is an investment that generates additional revenue without extra time or effort from you, which means it’s perfect for people with limited incomes or time to invest.
In simpler words, passive income is what you make when your money works for you. Passive income can come in the form of investing, royalties or even gambling. People looking to get ahead of inflation should consider passive income because it grows faster than regular income due to potential massive gains.
Passive income is necessary because it will help you build wealth and create financial security in the future. It’s always good to have an emergency fund, but with a passive source of cash flow, that emergency fund could be much larger and better equipped for unexpected expenses.
The first and most important thing to know about passive income is what it is not. It’s not something you can earn from a regular job. You have to put in the work up front to develop the systems so don’t expect to get rich quickly with this type of income.
5 ways passive income can help you change your financial future
Do you want to change your financial future? Do you want the freedom to work on what you love, rather than having to go into a job that pays well but leaves little time for anything else? If so, passive income could be the answer.
Let’s get to know exactly how it can help you for your finances in the future.
1. Freedom of time
Do you ever wish you could spend more time with your family without constantly thinking about meeting monthly financial deadlines? Do you wish you could take the time off from your regular job without worrying about eating up PTO hours or sick time? Time freedom is the biggest and most important benefit of passive income. Being able to generate income for your family while you’re sleeping, or spending time with your loved ones is life-changing.
Passive income provides stability and security for those who don’t want the worries associated with running their businesses or being self-employed while still allowing them freedom from the 9:00 am to 5:00 pm work day.
Passive income opens up opportunities for people who are employed in corporate America, and those who are operating their own companies to have the time available to invest in what they are passionate about, without the financial pressure they are used to. If you love working at your regular job, but it doesn’t provide the income you need, passive income could be the answer you’re looking for.
Related: 5 Simple Steps to Start Your Side Hustle
2. Less stress and fear of the future
It’s no surprise that money is a major source of stress for many people today. It appears that most individuals have some amount of worry about finances that can lead them down anxious paths, including depression. Money isn’t the most important thing in life, but it certainly makes things easier!
According to a Merrill Edge report, the majority of Americans (56%) would prefer to choose a partner who could provide them with financial stability rather than one who would give them a head over heels love. How sad is that? Imagine giving up on your dreams, or living through an unhappy relationship because you have to make sure the bills are paid.
Making enough money to live comfortably without having to worry can completely change your life and level of happiness. Would erasing the stress of where the bill money was going to come from change your life for the better? I know it did mine. Adding passive income that works for me made me feel like I could finally just enjoy the life going on around me.
After questioning more than 12,000 individuals who had previously applied for loans to eliminate their credit card debt, a survey conducted by Harvard concluded that people who had at least $500 cash on hand showed 15% higher life satisfaction than those who didn’t.
If we talk about well-being subjectively, on average, wealthier people are always happier and more contented with life.
Fear of the future limits our quality of life, making it difficult to enjoy today. A passive income can prevent this as you no longer have to worry about having enough money at month’s-end for your regular costs and bills. All these benefits make us feel better mentally, emotionally and physically.
3. Ability to live and work from anywhere
Many people like to have the freedom and independence that comes from passive income. You can live and travel wherever you want, without worrying about your job at any specific location.
For those who dream of traveling around the world but are unable to, due to their nine-to-five jobs or other obligations, this could be an incredible opportunity. This is a chance to live life on one’s own terms while still being able to take advantage of financial stability without sacrificing passion in any way.
Passive income allows us to take care of the cravings of our hearts by traveling to incredible places without worrying about our financial future.
4. New horizons for growth and stability
You know, when you’re able to make money just by doing something you love and not having a boss watching over your shoulder telling you what to do all day long, it is something heavenly. That increases your productivity and gives you ample time to divert your attention to more important things to help you grow more and make more.
When your income is automatically transferred to a savings account, you don’t need to worry about meeting expenses at month’s-end by exchanging direct time for money. This helps create fiscal clarity, which fuels our goal: future financial stability!
Instead of having to run off to your office every day and indulge in mentally exhausting work, you will be able to train yourself to focus on things that will make you grow and prosper over time.
Related: 17 Passive Income Ideas for Increasing Your Cash Flow
5. Pursue what you love
We all have things that we’re passionate about doing in life. Unfortunately, the moment something comes up, our passion becomes a distant memory, and instead, it’s replaced with anxiety over bills or just getting by each day on what little money is left from last week’s paycheck.
Passive income frees you from debt so you can indulge your fantasies without worrying if next week is going to be any better than this one was.
Passive income allows you to go debt-free or at the very least financially independent from your job or partner. Passive income means giving yourself time for whatever makes you happiest: music, dance classes or culinary art (perhaps in Italy?), artistry of all kinds…whatever brings inner happiness without having anything holding back those desires anymore.
Passive income is the prospect that can help you significantly change your financial future. I have discussed why it’s important and how it can make your future financially secure and enjoyable. It may not be easy, but if you are willing to put in the work right now to build passive income streams, then there will be huge rewards waiting for you later in life.