If you haven’t already heard of it, learning about passive income will change the way you approach making a living. In this article, I’ll discuss why passive income is the best type of income to work for and I’ll also briefly discuss several worthwhile passive income opportunities to consider.
Regardless of whether you make $ 10 per hour or $ 100 per hour at your job, you’re still working for earned income. Now, there’s nothing wrong with earned income. We all have to work for this type of income at some point in our lives. Very few people are lucky enough to be born into money. However, the major disadvantage with earned income is that you only get paid when you trade your hours of work (whether physical labor or intellectual labor) for money.
The author of “Rich Dad, Poor Dad”, Robert Kiyosaki, has written extensively about one of the most common challenges that comes along with getting wealthy: converting the income that you earn at your job into passive income streams. But what exactly is passive income anyway? In the simplest terms, passive income is income that you work for once, but continues to pay you over and over in the future. An example is building a business or investing in some form of real estate, both of which are assets that will pay you a passive income on a monthly basis either in the form of revenue or rent payments from tenants. Both of these examples are considered to be passive income because the only work involved is in the initial stage of investing your time and funds and preparing a company for business, or getting a building ready to be inhabited by tenants.
My own philosophy has always been this: If I have to work for many years until retirement, not to mention work at jobs I have little or no interest in, doesn’t it make more sense to devote as much time as possible to earning passive income? Besides the chance to retire sooner and the opportunity to spend more time with family and friends, I’ll also have the personal satisfaction that comes with knowing I am contributing toward my family’s financial security and not my employer’s financial security.
How To Spot Powerful Passive Income Opportunities
Now that I have explained the value of passive income, you’re probably wondering how to go about choosing the right passive income opportunities for you. Well, that depends on a few different variables, including how much extra time you have to devote and how much money you have to invest. When I first started dabbling in passive income as a starving artist I quickly realized I had far more time on my hands than I did money, so instead of dwelling on the negative I began focusing on building assets that cost little to nothing to get started. In my humble opinion, an online business is the ideal venue to earn a passive income. If you enjoy writing or keeping a blog, affiliate marketing can generate an impressive income. But if writing isn’t your strength, another opportunity like network marketing may be a better choice. A winning strategy entails building a diverse portfolio of various passive income streams. For instance, you may want to consider building your assets, then allocating some of your cash flow for investing in real estate or another possibly lucrative arena. But above all else, the most important step involves doing as much research as possible in order to find your niche in the exciting world of passive income.