This is not something that is actively taught in schools or when you are an employee, is something you have to figure out on your own, you have to learn using your extra free time, because as employees we are taught to earn active income, but not passive income. Unless of course you have parents or guardians who have taught you through their life experiences the importance of passive income since your early childhood informal education.
In schools we are more prepared to go and work for the money after we graduate, and less trained how we can make money to work for us, therefore this leaves us the choice to decide to invest on our own financial education in our spare time. After we graduate for instance from College, we usually search for jobs and work really hard for our money, and one day we get this long-term illness and we realize we can’t earn money anymore because we are no longer active workers or employees. We struggle to make end meets because we don’t have other sources of income coming in. Then we realize how nice if we had passive income streams established for ourselves from the beginning in our career, because now that income would have been taking care of us. I am not talking about savings, even though it’s another important financial area to learn about.
If you want to be financially free, or acquire financial freedom, and wealth, therefore creating passive income is a must area you need to work on. You can ask any entrepreneur and they will tell you, one of the reasons they wanted to become entrepreneurs is because they wanted to create passive income for themselves, some kind of financial freedom for themselves and their loved ones.
So, what is passive income? Well, passive income is the type of income or earning that you receive from a source other than your employer or your contractors. Or you can also say income that you earn when you are not actively working or engaged to get it. For example the income you get from rental property that you own– a rental income. Another example can be the income you get from a business, limited partnership or other enterprise where you do not actively participate or engaged, but you still earn income.
In more fancy way, passive income is the money you earn or coming into your pocket while you are at the golf club playing golf, or in Bahamas enjoying the ocean breeze…hahaha.
Passive income is the money you get without really working every day. The money you earn using other people time and sometimes even their money in exchange for the portion of the profit.
Here are more examples of passive income; equity ownership of stocks and shares can be a source passive income stream. Online passive income for instance; online programs, membership signs, and so on. It can also be offline passive income business like selling products such as books, or services that you have created one time, but they keep generating you ongoing income. Things that you only produce once, but you keep earning income year after year.
I know a few employees and self-employed people even though they are actively working in their workplaces or businesses, but they also find time on the side to slowly creating passive income streams for themselves. After work hours, they use that time to work on creating streams to earn passive income, by using the money they earn from being actively working on their jobs to invest on things that can earn them even more money.
You don’t want to be in a place where you are in a long-term sickness and you have used up all your insurance and savings, and you don’t have a backup source of income earning, it’s a terrible place or stage to be in. The earlier you wake up and realize the importance of creating passive income for yourself, the better for you in your journey to acquire financial freedom and become financial independent.
To me financial freedom is having a financial system in your life where your money really works hard for you than you work hard for your money. To be in a position where my money takes care of me even when I am in a place where I am not actively working, but that money keeps working for me, keeps coming into my pocket, therefore I don’t have to worry about what I am going to do to make ends meet. That’s a place where we all want to be in, that’s where true financial freedom really is all about.
According to Kim Kiyosaki the author of the book “Rich Woman” and wife of Robert Kiyosaki, the famous author of “Rich Dad Poor Dad” and “Cash Flow Quadrant,” she said “Financial freedom is much more than having money. It’s the freedom to be who you really are and do what you really want in life.” So it is almost the same thing; freedom to not worry about money and be able to live the life of your dreams.
There is nothing wrong to become financial free to have more than enough, you know…until your cup overflow, so that you are able to take care not only yourself, but others as well and therefore become a channel of blessings for other people too.
In life when it comes to financial area of life, you really want to consider acquiring for yourself passive income streams. But I do not suggest being passive in all other areas of your life.
When it comes to your career, personal and spiritual growth for instance, you cannot afford to be passive. You need to be very actively involved and participating. There were times I thought I got it, and told myself “I have read the entire Bible, I don’t need to refresh and keep on reading it.” But do you know it came a point where I backslidden in my Christian walk with God? But thank God things began to change when I started to read the Bible again and spend time in God’s Word, and I was able to be restored when I began to read the Bible again and again. And God began to showing me more things and gave me more understanding about things that I didn’t see before.
The same thing with personal development and growth, or your career growth, you constantly need to actively investing on yourself on your personal education or career by reading books, articles, listening to teaching programs, attending seminars and trainings. You have to continue keep on learning. You have to become lifelong student and learner if you want to succeed in many of your endeavors.
Even when it comes to creating passive income streams for yourself, it requires to keep on gaining certain knowledge and information, you can’t just rely on what you have learned long-time ago, the world is evolving, and some things keep on changing, marketing trends are keep on changing. Even if your financial goal is to acquire and earn passive income, but you still need to work on other areas of your financial education, business education, and et cetera by keep on learning, and investing on yourself.
The Bible says you can’t serve two masters, God and money; you will favor one over the other. What you need to do is to make money your servant, not your master, so it can work for you instead of you slaving for it. This will give you more freedom to have more time and focus on the things that really matters in your life and God’s eyes, and also doing the things you love, spending more time with your loved ones, serving God wholeheartedly, and enjoying the blessings of life.
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To your success,