How To Build Multiple Passive Income Streams

Types of Passive Income

Learn how to build up multiple passive income streams which will provide you with the financial freedom to live the life you desire.

Income can be categorized as either active or passive. Active income is where one has to work by trading his time to earn that income while passive income is where one earns income without being actively involved in deriving it. This type of passive income generally requires one to initially put in time and effort to build it successfully once and then leaves it to generate passive income over and over again for him unless one has already money to invest in stocks or bonds for interests and dividends which some terms it as portfolio income.

Would you rather trade your time for money or let your money work for you? The answer is obvious if you value the time that you have to spend on doing the things you love more than spending it on your work to earn money. Even if you love your job right now, what guarantee do you have that you will be able to keep it forever? Jobs nowadays are uncertain and loyalty to your boss will not guarantee your financial security. When one gets fired or laid off, his income stops from that time on and he has to rely on his savings or his compensation from the lay off (if any) while trying to search for another job. Worse still, if the economy is down and not many jobs are available, how can he find a job soon enough before his available funds dries up?

If you have a choice, wouldn’t you rather be focusing your time on building passive income more than active income? Therefore, while having a job to earn your income, you should try to build up passive income during your part time so that when once your passive income can generate more than your active income, then you can work on building more passive income streams full time which could generally provide you with financial security for your future and generations to come. Even if you decide to keep your active income after building up your passive income streams, you would have peace in your mind knowing that if you were to lose your job due to unforeseen circumstances, you need not worry too much as you have other passive income streams to support your daily expenses when that happens.

Everyone knows that time is very precious and you and I have 24 hours a day to spend it. And as we are getting older by the day, how would you prioritize your time and make it worthwhile so that when you look back later on how you have spent it, you would be satisfied that you have spent it wisely and not regret it as you don’t have the opportunity to turn back your clock and re-live it again.

You may be earning lots of money from a high income paying job which normally requires you to put in your time and effort to earn it. But if spending too much time to earn that kind of money at the expense of spending time with your loved ones especially where one has young children, you may live to regret it when you reach retirement age to realize that you have neglected spending enough time with them during their growing years.

So act now on building your passive income streams to gain financial independence and freedom to support your future income generation and free up the precious time where you can freely choose how to spend it wisely.

Read more about our journey in building our 1st passive income stream below:-

"How An Ordinary Couple Went From 0 To 13 Properties In 4 1/2 Years"

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