Time can pass by in a blink of an eye and there’s no way you can turn it back. If you are a business owner, your focus must be on how you can continue to earn profit, even if there are changes to the economy or industry you are in.

Many successful businesses are able to continue earning even when there is a change in the economy because they have passive income streams. Passive income allows businesses to stay afloat using income that is coming from major sources. For example, if you own a restaurant, your passive income can come from deliveries or special orders aside from your dine-in and take out services.

However, creating a passive income stream can be difficult for some businesses, which is why some choose not to set up one for their business.

Even if you are not a business owner but an employee, it pays to have passive income. Not only it provides some extra to spend on, it can actually tide you over during difficult times.

Examples of Passive Income Sources

  1. Rental

Have an extra room? Or an additional car in the garage? Or maybe you have an office you are not using on weekends? These can definitely turned into cash when you rent them out when you are not using them.

2. Stocks

I don’t usually dabble in stocks. I prefer my options to be more grounded. However, there are stock options or options trading that runs long term with minimal risks. I am no expert in this area so I suggest if you are interested in exploring this, talk to a legit professional. Just remember that if you are going to invest in stocks and shares, you’ll need to do lots of research. You’ll also need a share portfolio, or ‘aktiendepot‘ as they say in Germany. This can be very profitable, but will take up a considerable share of your time and energy.

3, Affiliate Marketing

If you have a blog or website that has high traffic, you can rely on affiliate marketing to bring in some cash. You won’t be able to quit your job just yet but it may bring in extra cash that you can save up for your next holiday.

4. Ads

I don’t do this with my website but I do know many who do allow advertisements or Cost-Per-Click ads on their blogs to bring in extra passive income. This is only workable if you have massive traffic to your blog everyday. We are talking about at least having 1000 views per day to make your website attractive for businesses to want to invest their marketing dollar on your space.

5. Create something

Write a book, design a game or create a course.. These are one of many ways that you can keep incurring income over and over again for many months. Sure, the initial stage of creation may be tough and time consuming but once a good product kicks off, the money just keep coming in whenever someone downloads your book, app or course.

Read More: 10 Writing Jobs That Pays For Real

Reasons why you should have a passive income

  1. It opens up time

Passive income opens a lot of time for business owners, especially as it can reduce your worries, especially when it comes to the financial obligations you may have.

The income you get can be used to pay off your obligations, which will then free you to look at other things such as how to expand the business or just relax from a busy day of working constantly.

  1. It helps prevent the stress you are feeling about the future

You can never tell when the market will fall or if there will be a national disaster that will affect your business. When this happens, it is possible that you won’t be able to earn some money to keep your business afloat and get back some of the losses you incurred during your time off.

But, if you have a passive income, you can be assured that once you get back to your main income generator, you have funds to restart and expand it.

Read More: 7 Time Management Tips For Reducing Job Stress

  1. It allows you to pursue the stuff you want to do rather than focus on bills and other expenses

Most of us are unable to pursue our passions because of financial responsibilities. However, having a passive income allows us to be free from such responsibilities and allow you to have funds to pursue these dreams. You will also be able to find new avenues to make money from the stuff you love to do.

Read More: 7 Ways To Supplement Your Freelancing Income Regularly

  1. It allows you to work and live anywhere you want

Having a passive income also gives you the ability to live and work wherever you want. As the money comes in through your passive income streams, you can afford to explore and not have to touch your main income in the process.

  1. It can set you up financially

Finally, since passive income is automatic, you don’t have to worry about where you need to get money for your business’ bills and other expenses. You will now have the time and funds to improve your financial stability and grow your money further.

Read More: Receiving Money For Your Freelancing Work


It is undeniable that passive income is very important for any business, especially in today’s changing economy. No matter what industry you are in, take the time to check what passive income you set up for your business and pursue them. There will be challenges but once you get the hang of it, you will be able to open a lot of opportunities for you and your business to grow.

Looking at how to make your website work for you? You need to read these:
10 Most Common Ways to Make Money with Your Website
How To Make Your Website Earn Money For You
Everyone Should Have A Website

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65 replies on “Why is Passive Income Important?

  1. Great Post Kally. Passive income is no doubt the way to go. So many of the things you mentioned are exactly what we do which is great. Zoom has been great. Lots of learning curves with our new normal. Thanks for the good tips.

    Liked by 5 people

  2. Guten Tag

    binden Menschen
    ihrem Leitbild
    nicht dem
    eigenen Gewissen
    zu folgen

    Den Ertrag
    aus dem Gewinn
    noch reicher werden
    (für die Armen)
    dies als
    oberste Prämisse
    endet beim
    letzten Atemzug

    Herzliche Grüsse
    Hans Gamma

    Liked by 3 people

  3. TERRIFIC ADVICE Kally, Thanks!

    “Prudence” is defined as doing the right thing at the right time.”

    The TIMES we live require PRUDENCE both in our business lives and in our personal life’s

    LORD teach us Prudence


    Liked by 3 people

  4. Very informative, Kally. There is a need for a passive income. And love that you highlighted some core “buts” in some of it. One need to make research to know the risks involved to and walk with it – e.g the stocks.
    Happy Sunday. 🤗

    Liked by 2 people

  5. I also agree that Passive income is something that has become very important.
    Often our main jobs or Businesses could have a lot of risk factors, cyclical variations and unpredictability.
    Passive earnings can not only provide us some necessary cushion against the negative factors but also supplement our incomes in case of unexpected expenses plus if we need to upgrade our lifestyle.
    I also have been striving for the same through Shares and Mutual Funds(I prefer the latter since last few years), recurring Deposits(RD), Online discussion sites(well, not exactly passive)and a few other avenues.
    However, the incoming earnings through these streams is not sufficient and I am looking to enhance.
    I do have a keen interest in Writing yet Writing has taken a backseat since last few years due to work and personal commitments and I need to get back to track.


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