5 Reasons Why It’s Impossible to Get Rich Without Passive Income
No matter how much you love your job, you simply aren’t going to be able to outdo someone who earns regular passive income. Why is that?
Passive income, unlike the active income that you earn from your job, works for you automatically. In addition, there are some very real consequences for not having residual income coming in that you probably haven’t considered before.
Here are 5 reasons why it’s impossible to get rich without passive income.
1. Time Is Limited
Time is precious. You get just 24 hours every day. No person on earth has access to more time than that. When you factor in 8 hours of sleep everyday, that’s just 16 waking hours for you to get everything you wanted to ever do in life done.
Unlike money, which can be save, spent, and invested, there’s no way to save minutes for later. We can’t get back the time that we didn’t use wisely.
That’s why passive income is one of the most important reasons why the rich keep getting richer. It’s how you detach your ability to make money from the amount of time that you have each day. When you use passive income methods, you’ll have the ability to make money 24 hours per day, even while you’re asleep.
2. It Allows You to Focus on Your Passions
Let’s face it. You can’t get rich if you are focused on what you DON’T have. If you spend all of your time worrying about how you will pay the bills, you already know that it causes unnecessary fear and anxiety.
Worrying about money beats you up emotionally and destroys your hopes and dreams for the future. Stress only leads to depression which will make it extremely difficult for you to stay focused on your business goals and pursue the passions that you believe will one day lead to wealth.
Having passive income can stop these fears. When you’re no longer worried about losing your job because you have money coming in from multiple sources, not only will you feel better emotionally, you can take better care of yourself. You’ll have more energy and feel more motivated to do what you need to do to grow your business.
3. It Gives You the Ability to Live and Work From Any Location
When you have a job, you’re generally tied to a specific geographical location. That makes it very difficult to lower your expenses in order to save more money. With passive income, you can live and work from anywhere. You can then relocate to an area that has a lower cost of living and lower taxes, allowing you to keep more of what you earn.
4. It Helps You Avoid the “Poor Tax”
The poor tax refers to any of the fees and extra costs that come along with not having enough money to pay your bills every month. Some examples of the poor tax include:
- Paying more for everyday items because you can’t buy in bulk
- Having to pay a higher rate for a monthly subscription versus an annual subscription
- Late fees
- Overdraft fees
- Additional fees for not using auto-pay to pay your bills
- Losing a larger portion of your income to taxes because you are in a lower tax bracket
- Having to take out loans at higher interest rates
- Having to resort to loans or credit cards to cover emergency expenses
People who earn less regularly incur these costs simply because they don’t have the extra money to avoid them. When you have passive income, you’ll never have to worry about paying the poor tax again.
5. You Can Take a Break
Don’t feel like going to work today? Need a vacation? When you have passive income, it’s not a problem! You won’t have to worry about how you will juggle the rent and the bills this month to make sure that everything gets paid on time. When you can take time for yourself, you’ll have the breathing room that you need to focus on getting rich.
Just think about it this way: rich people take regular vacations and have fun. Poor people deprive themselves of everything that deemed is non-essential because they need all of their money to pay their expenses. Which type of lifestyle would you prefer to live?
No matter how you look at it, passive income is essential to meeting the demands of daily expenses in today’s world. Many people simply don’t set up passive income streams because they think it isn’t attainable.
However, the truth is that you really can accomplish it, if you start making changes now.
How has passive income helped to change your life? What are your passive income goals for 2018? Share your thoughts in the comments below!
That’s pretty accurate. The key to success is investment and business. Thanks for this.
I have just gotten back into the game of earning passive income online. Not having it flowing steadily while I was taking a break from the internet hurt my pocketbook in a major way. You really feel the impact of a stop in the flow of finances. I am happily back online, picking up where I had left off and getting the money to flow again.
Thank you for this article. It boosted my motivation greatly.
Great advice! I have really been doing a lot of research on the whole “Passive Income”. It is so interesting to me. I just need to find my ideal way of earning. There are sooo many great ideas of how to earn that kind of money. I’m a single mom of 3 kiddos. I work a full time job and that still isn’t good enough to provide the things I want to for my kiddos. With passive income, it will help me afford all of the fun things in life I can give my children.
Essentially this is the goal we should all be working towards.
Once you have the systems and procedures in place, a passive income lifestyle can set you free.
It takes a hell of a lot of work getting set up but once that passive income starts rolling in, it looks easy and people forget that you put in the hard work at the early stages.
Yeah, I’ve heard it before and it’s always true. Being poor is expensive. Dollar stores tend to set up shop in low income areas because they know that the people shopping there aren’t aware of the poor tax. They’re like sharks smelling blood in the water.
This is absolutely true. Most people who have money, have no time and people who have time have no money. How do we find balance? I am the mother of 3 who has worked for years. It’s never enough. To have the energy and money to be able to spend with my family would be the ultimate. Everything I have researched requires a lot of money for starting out. I am willing to do the work. But where do you go for guidance and legitimate help? Open to suggestions.
Hi Fran, I would recommend that you figure out how much you need to earn first to feel comfortable and how much time you have each day to dedicate to your side hustles. Once you figure this out you can start making a plan. Check out my post How to Build Your Online Business in 3 Simple Steps for more tips.
This article couldn’t be more true and definitely needed as a tool for people to read and consider. I know a lot of people have a negative outlook on the “MLM” businesses, but they do generate real income. I wish people would see and understand that and realize that, with a little hard work and time management, it can be done… just like your article advises. Thank you for shedding light on that!
I am really planning to work online as freelancer to gain passive income. At first, I am getting started to join in some transcription job. This helps me a little bit in adding my monthly income but I’m still on the process of looking for a big one. Well of course I am ready to pay my own health insurance when I get separated from my current company I am working with.
This is a really great advice and I am looking forward to having a great big income online.
All of these are definitely true. Today I began a new project that in hopes of generating passive income. I’m considering developing a paid course on Udemy to provide a passive income when students enroll in the course. Initially, it requires putting hours of work but it can generate income passively over time.
That sounds great! I’m glad to hear that you’ve gotten started. Feel free to report back to let us know how things are progressing!
Each and every point mentioned here is related to my personal experience. I spent many years struggling for passive income for all these reasons you have mentioned here.
I wanted freedom of time, freedom of living my life the way I wanted to, and the opportunity to spend time with my family. During my job hours, I had become a puppet to the organisation. Though I earned a lot of recognition, I used to spend 14 hours working with no time for meals.
I was so lost in my job that I could hardly think about anything else. Yes, it is also true, my salary did not fulfill all of my the needs and then there were worries about current bills and future.
I then lost my health which is ultimately which prompted me to start looking for passive income.
Thanks for your story. I’m really happy that you shared this to remind others that they shouldn’t wait until it’s too late to start diversifying their income streams. Don’t wait until you end up in a major jam. I hope that your health improves!