Creating Passive Income to Bolster Your Financial Fortunes
When you’re only focused on active income from a job, you’re missing the opportunities online. While your job pays your bills and may even allow you to save a little money too, any profits from online activities drop directly to your bottom line. Getting ahead by saving more towards your retirement or building multiple passive income streams creates a robust financial position over time.
Here are a few benefits of creating passive income, not only active income.
Only One Job or Multiple Passive Income Streams
People who have a job don’t think about it much because they believe there’s no choice, but having a single job can be somewhat risky. If you get laid off or worse yet, fired, all your income disappears overnight. If you ever end up losing your job, whether out of your own accord or not, you’ll find yourself visiting the job center.
When you build up multiple passive income streams, you have a greater degree of protection. Whether you’re making money through writing Kindle e-books, commissions on items sold through websites and sent out by Walmart in the US, or video training courses through Udemy.com, the more income streams you have, the safer you’ll be.
Use Your Contact Network Better
Many companies are now doing business online. You’re bound to have some old contacts that you can look up and get back in touch with to see whether there is a service you can offer them as a side hustle. Their old email information could be out of date, so click here to check if their old email is still valid or not.
Incrementally Greater Independence
While you may not have financial independence yet, when you own websites or provide services that throw off a comfortable stream of income, you have more independence from a job. Online income can be developed over months and years which will make it easier to make the leap to self-employment when you’re ready and the income is high enough to sustain you.
No Salary Cap = Higher Total Earnings
Our job has a salary range. When asking for a pay rise, you’ll be told where you are within the salary range and whether it’s felt that you qualify for an increase. In almost all cases, you’ll never be allowed to reach the top of the salary range because it doesn’t provide an incentive to employees to keep plugging away. Unless you get a sudden promotion or become better qualified for a high position, earning more becomes close to impossible.
With passive income sources, no one is telling you that you are not permitted to earn more than the salary range. No one cares about that. They’re buying a product and you’re receiving the commission on the sale. You’re selling them a service that they need and receiving monetary value for your assistance. Your total earnings will always be higher than they would otherwise have been because there’s no longer any salary cap!
By adding passive income streams, you get closer to financial independence because most of the additional earnings go into your pocket and not out on personal expenses. This is because your main salary pays your personal expenses. Savings tend to add up fast when you have multiple income streams and aren’t relying on a single active income to survive.
