The importance of passive income must not be understated. For those unaware, passive income refers to an income received on a regular basis, with little effort to maintain it. Also commonly referred to as residual income, passive income is revenue generated even when you’re not actively working.
Unlike its counterpart, active income which requires you to continually work to earn revenue, passive income only requires passive participation. For instance, an example of active income is working at a job for any company. You either get paid hourly, or by salary, and once you stop working you’ll most likely not be paid anymore by that particular firm. You may get a severance package to assist with your unemployment transition but that’s about it. The company will cease to pay you further because you’re not showing up for work anymore, regardless if it was voluntary or not.
Robert Kiyosaki, author of the Rich Dad Poor Dad series, wisely stated:
“The idea of passive income doesn’t mean that you don’t have to work, instead it means you work smarter. Most people work in their business, but the goal is to work on your business and have your business work for you.”
With passive income, you may do a lot of work upfront to setup the passive income system but eventually you’ll be able to minimize your participation in those projects and still get paid. Please note that passive income is not considered a one-time lump sum payment, such as a sale of your home or stock, but a source of income that’s expected to continue over time.
Many successful entrepreneurs understand the significance of passive income and the vital role that it plays in creating financial freedom. In fact, some of the most successful entrepreneurs have multiple streams of passive income so that the money keeps on coming in even when they’re focused on other projects. Plus, having multiple streams of passive income also assist with minimizing the risks involved should any one of the income stream fail for any particular reason.
Here at Success Pen Pal, we like to focus on multiple streams of passive income for the reasons mentioned above. In particular, we enjoy helping people generate passive income by focusing on these three income streams:
- Entrepreneurship – Online Business, such as blogging, e-commerce, etc.
- Stock Investing
- Self-Publishing – eBooks, freelance writing, indie-author, etc.
The reason we selected these three passive income streams is because of its low-overhead and flexibility. To get started, all you would need is a computer, or laptop, with an Internet connection and a hundred dollars or less. The flexibility comes from having the ability to blog, write an eBook, or select products and services that you’re truly passionate about. Whether it be cooking, dieting, exercising, or even surfing, you could basically choose any field that you’re passionate about and share your ideas, opinions, and promote those goods to the world.
In the end, people are giving you their time which is the most valuable asset one has – so please don’t waste their time or yours. Remember, the goal and objective is to provide VALUE to others. Therefore, if you provide value through your blog, eBook, or selected affiliates, success is sure to follow and you’ll begin gaining fans globally.
For serious entrepreneurs looking to live a freedom lifestyle, along with earning multiple streams of passive income, please subscribe to Success Pen Pal’s FREE newsletter for tips pertaining to blogging, eBooks, and affiliate marketing. You can subscribe by entering your name and email to the right of this post.
Looking forward to helping you succeed and live your dreams in life!