Passive income is the goal of almost everyone, yet few achieve this during their lifetimes. It doesn’t have to be this way. I’ll explain how you can create ongoing streams of passive income by doing the work once and setting your business up for massive success for many years to come.
6 Reasons Why You Need to Start Building a Passive Income
Once a business is up and running, it’s time to explore the possibility of building passive income streams. These are streams of revenue that you plan and set up, and then implement, and they generate income for you without you having to lift a finger.
This sounds tantalizing to any small business owner, but you may not be aware of the full range of benefits this type of system offers. Here are the six benefits of creating passive income streams. I have personally benefited from all of these and my goal and intention is to help you to do the same thing in a manner that resonates with you.
This is the obvious one and the first one most people notice: You don’t have to work so much. With passive income, you beat the pattern of time and work equaling earnings. However, it can take considerable planning and upfront work to create your system for passive earnings, and there is usually some maintenance along the way. But once established, you earn potentially 24 hours a day without trading time or labor for it.
Passive Income Means Fewer Working Hours
You can use your passive income streams to reduce your working hours. Since you don’t have to work for every penny you earn, you can work less and use the extra time to restore your work-life balance and spend more time with family and pursuing other interests. Or you can devote that time to other aspects of your business. If you’re a freelance service provider, for example, you can focus more time on marketing, growing your skill set, and nurturing relationships, rather than just working.
Less Stress and Money Worry
A steady stream of income, even if small, can function as a small salary to help you get through lean months. You have a base income to keep you afloat when hard times hit. You can also use this income to sustain you when you want to make some changes to your business and have to take time off from regular work.
Many people set up passive income streams to use as savings for retirement, higher education, or healthcare emergencies. In many countries today the social safety net is shrinking, leaving people to fend for themselves for their basic financial needs. With a steady stream of income on autopilot, you won’t find yourself stranded.
Establish Your Reputation
One of the most common strategies for passive income streams is to create and publish information products. These digital products teach people how to do things using your professional expertise and experience. Releasing products such as these helps you establish yourself as an expert in your field and raise awareness for your brand.
Many businesses and freelancers find that they hit a kind of ceiling with their earnings. Working at full capacity, they’ve reached the most they can possibly earn. Passive streams of income allow you to break through this ceiling and earn more.
It all sounds wonderful, but don’t fall for the passive income myth that says it doesn’t take any work. It takes hard work to set up, and a good deal of planning. But setting up passive streams of income can be beneficial to any company and allow it to scale.
I’m author, publisher, and entrepreneur Connie Ragen Green and my goal is to connect with you if you have more than just a passing interest in getting started with an online business. I most recently released Really Simple SEO Tips and Keywords for Beginners and this is an excellent place to begin. Please take a look while it’s still at its introductory pricing.