4 Reasons To Build Passive Income Now
Before I go into those 4 reasons why you need to build passive income now, let’s talk briefly about passive income.
What Is Passive Income?
Passive income is the opposite of active income. Active income is your income from your job or when you are self-employed, run a brick and mortar business or a service business. If you don’t work, there is no income. And many, maybe even you, had to face this harsh truth during the Corona Crises.
In some countries, the government promised to help. But did that help come? When did it come? Did it come enough?
Passive income is something you build (of course also active) and eventually, the money just flows in.
- You have written a book (active) and every time somebody buys it, you get paid (passive)
- You join my digital business, you could call it a “done-for-you” business. Tell a few friends and they tell it to a few friends and soon you have an avalanche of new team members generating passive income for you (and of course for themselves, too)
4 Reasons Why You Need to Build Passive Income Now
Of course, I could write a lot more – even a book eventually – about passive income but for now I think you get it. Build it once actively and get paid passively.
#1 If you don’t work (pandemic, holidays, sick), you still have money coming in
Can you imagine what a relief this could have been for all those businesses, stores, restaurants, bars, and so on if they had a passive income? Not only would they have had income and be able to even pay their employees, but they’d also have time to work on it or on another source!
#2 Don’t be dependent on just one income.
What a wobbly concept, right? And yet, most people, employees, self-employed, store owners, restaurant owners, just have one income.
#3 Start with one passive income source
and when that flows add another one and another one. The more legs you stand on the better. One breaks away and you still have several more to keep you stable.
#4 Markets change.
And you need to be able to change too. Need to be able to pivot. And if you have passive income it’s much easier to do that.