Great benefits of passive income
“Don’t let making a living prevent you from making a life.” — John Wooden
Benefits of passive income
First of all, Passive income is generated without needing to spend time. This means that even you are sleeping or go on a trip, your still generate the money. You can run an online blog, set up a well-organized business, make real estate investment or create a mobile or computer application. Moreover, passive income grows exponentially if you are successfully organizing your business well. For example, you create a great online mobile game, more and more people will play your game around the world. This will unbelievably generate a lot of money steeply in a short time. At the same time, you need only small effort to get the money since you set up the system very well. It’s like you program a robot or machine to do something repeatedly, you will get the products nicely and super-fast. All you need to do is just only to maintain the machine well. The hourly rate profit is also high in compare with the active income. But, the high upfront investment of the passive income is very high and sometime the investment desperately fails.
Disadvantages of active income
In contrast, active income is generating in return for a daily activity. You work in a company and they will pay your hourly or annually according to your performances or experiences. And your salary will be increased every year linearly in term of how long you are working in your industry. Also, the effort-to-reward ratio in active income mode is very high in come compare with that of the passive income. You need to sacrifice much time and effort to get a small amount of money if you compare it with your CEO or chairman. The hourly rate is much lower than that of the passive income. However, the only good point of the active income is that the upfront investment is low. So, you need little or even no money to invest in the beginning of your earning. You just need skills or degree to apply for a job and wait for the salary at the end of the day. You take the less risk and need not to think much like your top management.
Don’t let making a living prevent you from making a life
However, creating a passive income stream is far from automatic. It’s no easy feat by any measure. It takes an enormous amount of effort and exertion of your time with very little return in the beginning. It involves an overall sense of frustration and an enormous learning curve. Still, it’s one of the most fruitful and worthwhile investments of your time that you could possibly engage in.
While passive income might not be the answer to all of your immediate problems, it is the pathway to success and most certainly the foundation for wealth and happiness. When you’re not stressed just to make enough money to pay the bills and you’re no longer living from paycheck-to-paycheck, there’s a mental clarity and an emotional catharsis that sets in. You become free from the shackles of a life-sucking 9-to-5 job and begin embracing a more fulfilled life.Great benefits of passive income
To sum up, each mode of income has its own advantages and disadvantages. Passive income needs more upfront resources and efforts while active income needs less or no need these things at all. However, the rewards of the passive income are extremely much bigger than that of the active income. So, people should be brave and go for the passive income at least one in their income streams.