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Meghan: There are only so many hours in a day – so many days in a year – and so many years in a lifetime. So why not make the MOST of it by actually providing yourself with the opportunity to choose what to do with your time?
That’s where passive income comes into play!
What Is Passive Income?
Passive income is income you receive automatically, with little work (aside from the upfront work you’ll need to do!). Active income, in contrast, is earned by directly trading your time for money.
For example, in any hourly or salaried job, the amount of money you make is directly related to the time you spend working.
With active income, when you don’t work, you can’t earn. That said, actually creating a passive income stream is easier said than done. But here’s why it’s worth it.
4 Reasons Why Passive Income Is Awesome
1. Reduces Worry About the Future
Winning the lottery would be great. But let’s face it, that’s unlikely to happen! Instead, think about ways to create passive income for yourself. Because not having to worry about money can be a huge stress relief!
2. Allows You to Do What You Love
Life is short. And in my opinion, working a ho-hum job until you’re 65+ in hopes of eventually retiring sounds pretty dreadful. In fact, lots of folks hate being a part of the rat race!
Earning passive income gives you the freedom to work to live, not live to work.
Maybe you’ve always dreamed of learning how to paint or want more time to volunteer with your favorite charity. If you’re in charge of your own schedule, you can manage your time however you see fit! That’s another great aspect of earning passive income.
3. Allows You to Live and Work From Almost Anywhere
If you read this blog, you probably have a passion for travel. And if you have a regular 9 to 5 job, you likely don’t get much vacation time.
But, if you can make enough passive income to cover your living expenses, you have the ability to live and work from anywhere! Without having to ask your boss for time off or worry about how many vacation days you have left. 😉
4. It (Sometimes!) Provides Tax Benefits
Passive income streams like real estate investments can not only earn you extra income, but can provide tax benefits too!
If you own a rental, for example, you can write off expenses like the cost of repairs, utilities, and insurance premiums, which will save you money by reducing your taxes.
If there’s a mortgage on the property, you can also deduct the mortgage interest you paid over the course of the year. And that can really add up!
Million Mile Secrets team member Meghan believes earning passive income is one of the best ways to set yourself up for financial success!
With passive income, you can stress less about the future, and take more time to enjoy the things you love.
What are your favorite ways to earn passive income?