Why you should start building passive income today: 6 benefits
Do you sometimes lay awake at night worrying about money? You’re not alone. Research shows that financial worries are the number one thing that keeps us up at night. Life just keeps getting more expensive. What if you never had to worry about your income in the future? You can. Because with passive income, you earn extra money without actively working for it. And there are even more benefits. We’ve listed them for you.
#1 More financial flexibility
You can perfectly combine a passive income with a full-time, active job. This way, you earn an extra income on top of your fixed monthly salary, which gives you more financial room to maneuver. The best of both worlds, right? Because with that extra income, you can also spend a little extra. A nice bonus, isn’t it?
#2 Working less for more money
Generating passive income creates an extra source of income for an effort that you made in the past. Once the effort is made, the money keeps coming in. Once there is a first passive income, you can focus on creating new passive income streams. Bit by bit, you’ll have less work, more time, and more money.
#3 More time for relationships, hobbies or yourself
We are constantly running ourselves ragged. Agendas are overflowing with family obligations, and the workplace has increasingly high expectations. Stress is lurking around every corner. If you want to live comfortably, you often have to work hard for your money – besides marrying rich, that is. With passive income, you create time and space that you can reinvest in your relationships, family, hobbies or yourself.
#4 Unlimited earning potential
Unlike active income, you can earn an unlimited amount with passive income. Because even if you wanted to, it’s just not possible to work more than 24 hours a day. With an active job, where you are paid for the work you actually perform per hour, day, or month, there is a maximum to what you can earn per month, and your income is therefore capped.
#5 Earning anytime, anywhere
Unlike an active job, you can earn money even if you’re sick, on vacation, or decide to work less. Because to generate passive income, you make a one-time effort that you will enjoy in the future. (Even with your feet up.)
#6 More financial freedom
The ultimate goal of passive income is always to achieve financial freedom. That means that money comes into your account while you spend your time on things that really matter. This is impossible with active income, as such a job takes up so much of your time. But because passive income allows you to earn without working for it, it is possible.
The FIRE movement is also committed to financial autonomy. FIRE stands for Financial Independence Retire Early. The idea is to be smart with your money so you can retire earlier. Want to know more? Here you can learn everything about the FIRE movement. Do you also want to achieve more financial autonomy? Then read our 11 tips for building a passive income.
Did you know that you can also start building passive income through Meeting-out? You can rent out (a part of) your home to companies for meetings. And if you join now, you can enjoy these 5 early-bird benefits.
