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!