If you want to enjoy more of life, have more time and freedom to yourself and not be tied to a 9-5 job stealing a lot of your time without the fear and stress of having to find a way to pay your bills and expenses… you need a passive income business.
Passive income does exactly what it says on the tin. You earn an income passively.
What this means is that each month you have money coming to you and being deposited in your bank with little work on your behalf.
Before we get too deep into this report, let me just say for clarity, even though there is little work required to run a passive income business, there can be some work to maintain it, and there can be quite a lot of work initially when setting up an income stream.
There are many different ways to build a passive income stream. Some require you to leverage your money by investing in items such as rental property, others may require you to create a product to sell and others may require you to build an actual business which you then leave in other people’s capable hands to run it for you.
Semi- Passive vs Passive Income
Many passive income streams should really be called semi-passive income streams because they need managing. The work to manage and run some passive income streams may be less than a couple hours a week but they still need some work doing.
I for one think that doing an hour or two of work each week to maintain a steady income is not a lot of work. I think most people would be happy to do that.
Turning a semi-passive income stream into a fully passive income stream can mean paying someone to run and manage your income streams for you, which is a good idea if you really want a hands off income.
Landlords often do this, they invest in buying new rental properties and then hand them over to a property lettings company or they hire someone to manage the day to day running of their portfolio.
A person who has 10 rental properties (Multiple income streams) each earning him £800 a month in rent is earning in total £8,000 a month. They can afford to pay someone £1,800 each month to manage their business and still earn a nice chunk of money each month without needing to get their hands dirty.
Imagine having 20 or more properties paying you rent of £800 or more each month.
Having someone else to run your income streams is a personal thing. You do not need to if you like to be on top of your business. Also, depending on the nature of your business, it doesn’t need to be costly and nor does it need to be a full time position.
If your passive income stream involved generating money online selling products and you needed to run adverts to your website, you could pay a person to manage your adverts which would probably not require more than a few hours work each week.
One of the secret of the mega wealthy is that they create multiple income streams known as MSIs
As mentioned in the rental property example, each house can be considered as a separate income stream. When you have multiple rental properties, you have multiple income streams.
It is the same with businesses. When you have several businesses all paying you an income, you have multiple income streams. Even better if you have other people doing the work and running the businesses for you.
Products like books are income streams. Good books can become passive income streams, Stephen King does not need to tell the world about his old books and yet they still sell. He and his publisher – if he still has one today with Kindle self publishing – will promote his latest offering, but the old ones still sell because they are well known.
Look at Dr Seuss and Roald Dahl, those authors have books published which are still selling to this day even though both men are no longer with us. Each of their books is an income stream generating money.
The money may all come in at the same time from the publisher but the amount is determined by the number of sales of each book.
Reasons Why You Should Build Passive Multiple Income Streams
The most important reason is that unlike having a job where you earn a wage, multiple and passive income is not dependent on you having to consistently work.
Yes there is work to do at the beginning, and there may be some managing work required over time, but you don’t need to put in a full 8 hour shift to make money. The money doesn’t stop as soon as 4:30pm comes and you down tools.
Money is being made no matter what you are doing or what time of the day it is. You are free to do what you want, when you want because you are earning money.
The next big reason to create multiple passive income streams is that should one income stream dry up or have an unexpected bad month, you are still earning money from the others. There is nothing worse than having bills to pay and then your income is suddenly interrupted.
If you work a fulltime job and without warning you are made redundant, your income has all gone. But your mortgage costs, your loan repayments, your bills and your living costs do not stop. You still have them to pay, and when your only source of income has gone, life can become very stressful.
At least when you have multiple income streams, you are still earning money should one or two stop.
Imagine that you had 5 income streams and all 5 were earning £500 a month. You have £2,500 coming each month in total.
If your monthly outgoings and living costs were £1,500 and 2 of your income streams suddenly dried up, you will still have at least £1,500 coming in to cover your expenses.
It may not be perfect and you may not enjoy being £1,000 a month down, but at least your monthly expenses are covered and you are not stressing where you are going to get the money from.
You have the freedom and the peace of mind to focus on either fixing your income streams and recovering your lost £1,000 a month or creating new income streams to replace them. It is a less stressful position to be in compared to losing your job and your income outright.
No matter what your age is, if you want a stress free life with more freedom to enjoy yourself, then your focus should be to build at least one passive income stream. More if you want more money and more peace of mind.
Multiple income streams and passive income streams is the secret to great wealth.
Imagine having several income streams paying you several thousand pounds each month… it happens… but not by accident, it happens only by design.
It is through conscious decision and knowledge that we can change our financial future.
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