Are you thinking of increasing your income without increasing the number of hours that you work? Lucky for you, in our world of technology it is now more possible than ever. In fact, the most rich people have learned to leverage their income to make more money, this way, they can spend more of their lives enjoying their money than simply working for it. Now, you may already be keen on earning passive income but if you need any more reasons then feel free to take in the following three benefits!
Reason #1: Build confidence in your ability to learn new skills
One of the ways to stay relevant anywhere is by learning new skills. Not only does learning new skills make you relevant, but there are also other benefits attached to it too. Learning new things can make you healthier and happier by giving you a sense of fulfillment. You believe more in yourself each time you successfully learn a new skill and that improves your self-confidence and hence, makes you happier.
Also, learning new skills boosts your creativity. It opens you up to innovative ways of doing things. People who learn new skills are more valuable than people who do not have any new skills. People who constantly learn new skills are more likely to be retained at their current job and get promotions faster because of their skills. No matter what industry you are in, there are always skills that you can learn to make you better.
However, it is difficult to learn new skills if your current job requires all your time. It is difficult to concentrate on learning a new skill if you are living from paycheck to paycheck and busy working to have enough money to pay the bills. Moreover, you won’t have enough confidence to learn new skills if you do not have an extra source of income apart from your job. The reason why most people remain average in their job is that they lack the necessary skills and they lack these skills because their job demands too much of their time. Hence, they don’t bother to become better at their job as long as they can meet the minimum requirement to keep the job. As you know, there are only 24 hours in the day and you are not going to get more and with an employer demanding at least 40 hours of your time on a weekly basis, this leaves little time for growth.
Therefore, the way to build confidence in your ability to learn new skills is to have a source of passive income. The reason why you need a passive income is that you can easily combine it with whatever job that you are doing right now. Having a passive income will unlock the time you need to tool up and increase your worth. Not to mention, you won’t have to worry about not having enough money because your passive income will supplement you as you go. In short, it will be much easier to focus on a new skill when money concerns are out of the way. Another advantage of passive income is that it is an extra source of income. Most desirable skills will require some form of capital investment to learn them. For instance, you may have to pay money for training and seminars. You will also need money if the skill requires that you go back to school. Therefore, having an extra source of income will boost your ability to learn new skills.
Reason #2: Amplify your saving and investing efforts
There are two ways to increase your savings. The first way is to reduce the amount of money that you spend and the other way is to increase the amount of money that you make. You can always cut your spending but it will get to a point that there will be nothing else to reduce. In such a situation where you have a tight budget, the best thing to do is to look for a means to increase your income. One way to go about this is to generate passive income. Passive income increases your total earning and serves as an additional source of income. This can help amplify your investing and saving efforts. One of the ways to increase your savings is to have an extra source of income. However, the common way that most people think of acquiring an an extra source of income is to get a new job. But the probability of getting a new job with higher pay than the one you are currently doing is low. Many people are also out there competing for the same job as you. Another thing that people do to supplement their income is to get an extra job. That means they are combining more than one job at the same time. While this may bring you some extra income, it is not always the best use of your time. Combining two jobs will take most of your time and it can be stressful.
Also, it is difficult to think of saving money or even investing some if you are living from paycheck to paycheck or still battling with debt. Many people who have just one source of income have this problem. That one source is usually not enough to meet their needs and that means that they would not have enough to save or invest. Most of them end up borrowing and the money they should have saved will be used to pay debts.
Therefore, the way to amplify your saving and investing efforts without spending more time at your current job or getting an extra job is through passive income. It is called passive income because unlike a day job, it doesn’t require your presence all the time. For example, you can rent out a room in your house and make some extra money without trading more of your time to acquire it. Essentially, you don’t have to do any work to get paid. You can also start a YouTube channel where you record yourself and post it online for people to see. Through Google AdSense, you can generate some extra income every time people watch your video.
Moreover, when you have one or more sources of passive income, you can focus on your job and still make more money. You can either save or invest the extra income from your passive income. Without passive income, you will need to cut down your expenses and live on a tight budget if you want to save. However, with passive income, you don’t have to completely compromise your standard of living just to put some money away or invest.
Reason #3: Transition your income from paid labor to meaningful work
So many people do not like the job that they are doing right now. However, most of them keep doing these jobs because they need money to pay their bills. They cannot quit because they understand that it is difficult to quit your job when you don’t know what waits for you after. Therefore, they just keep plugging away hoping that one day they will get to enjoy life. Sure, they have plans to quit the job after a few years and do what they love but it turns out that a lot of them will have to do the same job until they retire. That is when they will realize that they have spent their entire life doing what they do not like but it is usually too late.
Then there are people who only start living and enjoying their life after retirement. This is when they have time to do the things that they have loved to do all their lives or have put off until their golden years. This is when they travel to new places or pick up a new sport. Now, there is nothing wrong with enjoying your retirement years but why not dip into those good times sooner? The reality is that most of us want that but we don’t know how. Once again, the answer is in passive income.
Passive income allows you to transition from paid labor to doing meaningful works. With passive income, you can create multiple streams of income. Now once again, earning passive income does not mean that you will generate money without doing anything ever but with although it can involve little effort when set up right and I will talk about that shortly. So what are some ways you can realistically earn passive income? Some of the most achievable methods include starting a blog, creating a YouTube channel, doing affiliate marketing, renting out space in your house, or selling information products. Another method, and one that is very hands off is through investing. Investing is a way to put your money to work however its main drawback is that in order to earn a substantial amount of passive income in the form of dividend you must already have a lot of money invested which for many people isn’t the case.
Another idea for generating passive income is by writing a book. If you have knowledge about a particular subject you can turn it into a book and make money from it. The income from selling a book is passive because you don’t need to write a new book each time someone wants to buy it. With online platforms such as Amazon, you don’t even need to print copies of your book as people can buy it as an e-book. However, like every other passive income source, writing a book requires that you dedicate your time to it.
As I mentioned, passive income is a means of transitioning from paid labor to meaningful work. Passive income gives you the chance to do what you enjoy. When you are employed, you trade your time for money. If you are self-employed, you can work harder and make more money. However, you still have to trade your time for money because to make money depends on your presence and active involvement. But passive income allows you to create a system that can generate money with little or sometimes no active effort from you. For instance, you can hire a website developer and a content writer who can run your whole blog or hire a ghostwriter to write the novel you will sell on Amazon. By doing this, you don’t have to trade your time for money and because of this you can do all the meaningful work that you want to do and be truly happy.
The realist is that most people who depend on paid labor constantly worry about money. Their only concern is how to get enough money to pay their bills. Paid labor is usually fixed and you may need to wait for promotion before your employer increases your salary. But with passive income, there is no limit to the amount you can earn. You can therefore transition from a paid labor, which consumes all of your time, to living off your passive income when you have enough reliable streams in tack. Then you can unlock the time to paint full-time, volunteer at a hospital or start your career as a professional video game player. In essence, the only thing holding you back from your ideal day to day lifestyle is the passive income that will keep you financially afloat!