The Power of Passive Income — Part 1
The Introduction
You should be looking for ways to get this power.
In general, there is no easy way to make money. Other than being incredibly lucky and winning the lottery, either the real thing or being born into a financially secure family.
But for most of us, we are not so lucky. So herein lies the question, how can we (and I mean anyone) get to the level of ‘financial freedom’?
But first I should explain what I mean by ‘financial freedom’, it’s the ability to live life without having to worry about whether you have enough money for this week’s rent, or bills, or shopping or whatever else you may need or want. You are able to do what you want when you want (financially speaking).
I would also add to this ‘freedom’ the removal of the necessity of having to do a 9 to 5 job.
So, what is the magic formula that will allow all of us to experience this ‘freedom’? Well, as you might have guessed, it’s a lot of hard work, a fair bit of creativity and a bit of luck.
There is no sugar coating it, the beginning of this journey will be long and difficult. But as often it is with these types of journeys, the payoff will be worth it. It’s hard to start but slowly becomes easier as you go forward.
Passive Income
Let’s introduce the concept of a passive income, for those of you that might be new to it. The concept is rather rudimentary and straightforward, unlike the process of achieving it. Passive income is the method of generating revenue without having to continuously work for it.
This may sound a bit misleading, it does not mean that you do something once, and you are set for life, though if you are lucky enough this could happen. But in general, you create a piece of work which requires you to only do it once, while thereafter generating a revenue stream.
Like writing a book, you work hard at it for a period (however long the period is), and after its complete, published, and released, it starts to generate an income. Without you having to directly, work on it. In other words, it makes you money, even when you sleep.
Granted, you will have to promote it but in due course, it will allow you to sit back and enjoy the incoming revenue.
The best way to look at passive income is like an investment (FYI, this is a great way of getting into a passive income stream but more on that later), you keep putting in a dollar a month and through the process of compounding interest and accumulation; you generate more than you put in, without having to break a sweat.
And the more passive income streams you have, the greater your accumulation of wealth will be. Passive income leads to financial freedom, as well as, freeing up more of your time.
A quick summary
- Financial freedom is the ability to buy what you want when you want it.
- Passive income is when you generate a revenue stream, even when you sleep.
- The more passive income streams you generate the greater the wealth you accumulate.
- The journey is long and difficult at first but it becomes easier the longer you stick at it.
- Passive income leads to financial freedom.
So that explains what it is, and a bit on why you would want it. Stay tuned for the ‘how’ in part 2. I hope you found this article useful. Thank you for taking the time to read it, if you have any questions, please leave a comment.
