11 Top Advantages of Earning Passive Income
You do not have a boss. You are completely independent. You work when you want, and how you like without reporting to anyone. That means your creativity can run wild without being limited by a boss’ fears or limiting company policy. And there is no office politics where everyone fights for recognition by the boss for promotion and bonuses.
You can put in maximum effort. You know that the passive income business is yours so you put in maximum effort to create it, missing out on sleep sometimes, and foregoing fun during the weekends. But, when everything is in place, you gain maximum income which is not determined by a boss.
Freedom lifestyle. Passive income allows you to travel anywhere in the world any time of the year. Should you need to take care of business during your travels you can do so from your hotel room using the phone or Skype or online services through your laptop. Freedom is the biggest benefit of all, something that you cannot get as an employee, or a freelancer or a regular business person.
When you earn a passive income you have plenty of time for leisure activities and health activities. So you have time to play your favorite sport or to go to the gym for a workout or to learn a new skill, and still have time with the family. If you have always missed your kids’ school activities, you can now attend them all when you set up passive income streams. You can basically work in the morning and play in the afternoon most days.
You can work anywhere. You can choose whether you want to work at home or at the beach or at Starbucks or at the airport while traveling. As long as you have a laptop and internet access, you are very flexible. And you can work whenever you want without being tied to a day job and a time table. So, if you want to have a long lunch with friends you can still work in the evening if you want to.
You can achieve financial freedom by creating as many passive income sources as you want. Because your income is automated, you only need to work a few hours per week, and in some cases, you do not need to do anything. So, you have plenty of time to create many more passive income streams. Should one income stream be cut off, maybe due to economic changes or other change, you can still benefit from your other streams of income. Passive income genuinely spells financial security.
Your income is not tied to time. The beauty of passive income is that it comes in whether you work all day or just an hour per day. If you take a few days off to look after your sick child, you continue to earn money on your passive income streams. If you decide to go on vacation with the family, you still earn money. Contrast that with a job where the salary or wage which is based on time, where you only get more money if you work overtime, and get nothing if you do not work. You can outsource some of the work. You are free to do all the work or to outsource some of the work. With outsourcing you choose the best talent you can afford.
- Tax benefits
You can claim business expenses for tax purposes. So the interest you pay on your mortgage, the traveling costs, communication costs, web hosting costs, and other costs of doing business can be claimed from your income and you then pay tax on the balance. That is way lower than the tax you would pay on a salary.
You do not get fired or laid off. If you set up your passive income streams successfully, you earn money from your own assets or businesses, and no one can fire you or lay you off. You are in total control of your financial destiny and you do not depend on the ups and downs of the economy. And, if the economy affects one income stream, you still have other streams earning for you.
You can sell the business or asset. You fully own the business or the asset that provides passive income. Should you decide to get rid of one asset or business, you can sell it anytime if you want to invest elsewhere, and you can sell it for a lot of money too. Just check out how much money people can make from selling a website on Empire Flippers.
You earn while doing what you like. Most people setup passive income based on what they enjoy most, for example, a person who enjoys cooking can make money from a membership site that sells meal plans and recipes or they can sell a cooking course in a specialized cuisine. You can basically turn any hobby into a business. It is rare to get bored when you make good money while doing what you enjoy most. The people who tend to visit your site are people who have similar interests to you so you can enjoy connecting with them in a forum.
Passive income allows you to be richer while enjoying more freedom and it gives you an opportunity to retire young and retire rich. You cannot get that from a job because in a job you must work full time in a designated place during designated times or travel where you are told to travel, leaving your loved ones at home. In a job, your creativity can be curtailed because either your boss is not entrepreneurial or because company policy limits creativity. In a job you cannot take time off when your child is sick or when you want to attend a school function. Money wise, you may be better in a traditional business than in a job, but building a business takes time and you may have no time for family. Therefore your sure bet for freedom, a regular income stream and wealth building is passive income.