Why is Passive Income Important?

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

Conclusion

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 Comments Add yours

  1. Wow….that’s a great information shared. Appreciated!!!
    Well written and detailed.

    Liked by 2 people

    1. Kally says:

      Thank you, Dr Narata and welcome to MiddleMe! I hope you find this site useful.

      Liked by 1 person

      1. You’re welcome. Yes I found it useful.

        Liked by 1 person

  2. nellycherry says:

    Very informative

    Liked by 3 people

    1. Kally says:

      Thank you Nelly and welcome to MiddleMe!

      Like

  3. KK says:

    Nice article 👍

    Liked by 3 people

    1. Kally says:

      Appreciate your comment, Kaushal.

      Liked by 1 person

  4. 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

    1. Kally says:

      Received your FB message, Cindy. You’re most welcome on the tips.

      Liked by 1 person

  5. Gamma Hans says:

    Guten Tag

    Organisationen
    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

    1. Kally says:

      Thank you, Hans for your poem.

      Like

  6. Kally, so clearly and succinctly outlined! Thank you for giving me something to think about further.

    Liked by 6 people

    1. Kally says:

      Thank you so much, Sean. Hope you are having a wonderful weekend.

      Liked by 1 person

  7. Manisha says:

    This is very useful…
    Quite informative I must say 👍👍

    Liked by 2 people

    1. Kally says:

      Thank you, Manisha. Hope you are having a wonderful weekend.

      Liked by 1 person

      1. Manisha says:

        Absolutely.. ❤❤

        Liked by 1 person

  8. S Bara says:

    I enjoyed reading this article. Thank you for sharing.

    Liked by 3 people

    1. Kally says:

      Thank you for your comment!

      Like

  9. Passive income… most of the people serving nowadays. Everything in the world is changing, we have to adopt new things. Nice post

    Liked by 5 people

    1. Kally says:

      Thank you, Kamal. Have a wonderful weekend!

      Liked by 1 person

    1. Kally says:

      Same to you!

      Liked by 1 person

  10. A passive income will generate on its own, which allows you to focus on other areas of your business and quite literally make money while you sleep.
    Very interesting and thanks for sharing

    Liked by 3 people

    1. Kally says:

      Thank you so much, Kingsley and welcome to MiddleMe

      Liked by 1 person

  11. Jimmy John says:

    Very well written. Useful content

    Liked by 2 people

    1. Kally says:

      Thank you, Jimmy and welcome to MiddleMe. I hope you will find the site useful.

      Liked by 1 person

  12. 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

    Patrick

    Liked by 3 people

    1. Kally says:

      Thank you for your wisdom, Patrick!

      Like

  13. Swetha says:

    Nominated you for the sunshine blogger award..do visit my recent post!!

    Liked by 2 people

    1. Kally says:

      Awww… thank you Swetha for your generosity and I am so honored!

      Liked by 1 person

      1. Swetha says:

        My pleasure 😊😊

        Liked by 1 person

  14. Ultra says:

    I learned a lot from this post. You educate us, for which we would like to thank you.
    best regards

    Liked by 3 people

    1. Kally says:

      You’re most welcome and thank you for your encouragement!

      Like

  15. Mishkat Al Moumin says:

    Great ideas! Thank you for sharing and encouraging people to have passive incomes.

    Liked by 2 people

    1. Kally says:

      Thank you, Mishkat! Have a wonderful weekend!

      Liked by 1 person

  16. Yes. It’s important.

    Liked by 1 person

    1. Kally says:

      Appreciate your comment.

      Liked by 1 person

  17. PoojaG says:

    Passive incomes are such a great way to make some income for a rainy day or just to save in general. Great post!

    Like

  18. 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

    1. Kally says:

      Thank you Herry and bless your heart. Have a wonderful Sunday.

      Liked by 1 person

      1. You are welcome. 🤗
        Amen. Thanks Kally.
        A great new week.

        Liked by 1 person

  19. Passive income does seem like a good idea for anyone. I haven’t yet found a source that works for me, but these are some great suggestions. I’ll keep trying!

    Liked by 2 people

    1. Kally says:

      You’re most welcome! I wish you success in finding the right source!

      Liked by 1 person

  20. Passive income is important so you always have something to bounce back to I guess.

    Liked by 2 people

    1. Kally says:

      That’s sums it all up! Thank you and welcome to MiddleMe!

      Like

      1. You’re very welcome!

        Liked by 1 person

  21. Dreamer ❤ says:

    Very helpful post, thanks 😇

    Liked by 3 people

    1. Kally says:

      Thank you so much. I’m glad it helped you.

      Liked by 1 person

  22. Your articles are always so informative

    Liked by 2 people

    1. Kally says:

      Thank you so much!

      Liked by 1 person

  23. Excellent article. Preparing for the future is something we often don’t think about until it is too late.😣👣

    Liked by 2 people

    1. Kally says:

      Thank you, Georgetta. I agree people rather plan for holidays than their futures.

      Like

      1. Yes they do🤗👣

        Liked by 1 person

    1. Kally says:

      Thank you for sharing this!

      Like

    1. Kally says:

      Thank you so much! Have an awesome weekend!

      Liked by 1 person

  24. ptrikha15 says:

    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.

    Like

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