Earning a truly passive income is the end goal of the vast majority of internet marketers and you could very easily consider it to be an absolutely ideal situation in terms of finances and business. What is passive income? Simple: it means that you earn money without having to work. That doesn’t mean you haven’t worked for it though – it just means you’ve sewed your seeds so that you can profit long into the future.
In other words, you invest some time and money into setting up a business model that is capable of ‘running itself’ and from then on, you reap the benefits. You might even continue to work on the business model in your spare time to scale it further, or to keep it going, but the point is that you don’t have to actively trade your time for money any more. Once you have a passive business model, you can literally continue to earn money while you’re sleeping.
Working online increases your freedom to a great extent because it allows you to choose how and when you work. But if you’re providing a service to a client, then that’s still not true freedom. At the end of the day, if you take time off, you lose money. And you can still upset your clients and end up losing your means of income. But with passive income, you really do get to experience true freedom.
Now you can choose to take the entire day off, or to refrain from working for the next week even and there will be no repercussions. Want to spend more time with your kids? You can! Want to go for a stroll and feel the sun on your face? You bet! Want to go travelling? Play a computer game? Work on a personal project that means a lot to you? Stay in bed?
I think you’re starting to get the picture…
Using Passive Income to Begin Building Wealth
For many people, passive income goes further than this. Passive income isn’t necessarily about working less but rather it is about increasing their income and compounding it over time. More so than any other type of business, a passive income model will allow you to scale. Why? Because if you start earning money that doesn’t require your active input, then there’s no reason that you can’t use your free time to set up another passive income model.
And then another.
And another.
And each time you do this, you increase your potential earnings several fold. You can also often increase the earning potential of a passive income model simply by investing more money into it in order to scale it up directly. And the more separate passive income businesses you create, the more resilient your business will become. With ten separate businesses, all running at once, you can consider your income very safe.
It would take multiple businesses all to fail at the same time for you to have any threat of serious financial strain.You can use a passive income to set up multiple businesses then and you can use a passive income model to fund other business plans and thereby ‘bootstrap’ your larger ambitions and projects.
Wrapping It Up
So as you see, it all depends on you, your goals, and what you want out of life. Having multiple businesses and multiple streams of passive income will not only help you get more out of your time by having more of it for yourself, but can protect you by hedging your bets on different sources of income. The thing with it, it does take good active working habits to succeed! And if you are really smart, you will try to find ways to monetize the things in life that you love to do, so therefore, you never stop living and earning! Think travel bloggers... Just saying...
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