Passive income, if set up correctly, can provide financial stability in a new way. But not knowing if a passive income stream will succeed can be intimidating. To counter that, many people start their passive income streams while they are still in the financial comfort of their current 9-5.
Passive income streams take a lot of initial hard work but allow you to spend more time with your family. Many passive income streams can be managed from anywhere in the world. Most people feel trapped in their jobs because of "advantages" like health benefits and future pensions. However, pensions are disappearing, and you need to take inflation rates into consideration when setting money aside for retirement.
In some countries, taxes are higher for employees than for sole proprietors. If working for yourself is more advantageous with regard to taxes in your jurisdiction, making passive income versus active income can be considered. When you quit your 9-5 job and have your own passive income sources, you no longer have to deal with company politics.
Passive income offers many benefits over active income, including less commuting, more free time, and better tax breaks. When you make active income, you are limited to the salary you are allotted per year. You may not be able to negotiate an increase in your salary in the future.
Stability and consistency are the names of the game. If you find the right company to work for. Fortunately today there is a lot of free information where you can build new skills and exit the undesired industry.
Note, we are headed into recession so initial stability will be put to the test! If you have a job there are a few things you can do to up your income! Improving your skills always pays off. If you are already being paid for your skills why not double down? If you don't like the industry you are in you can learn new skills to exit that industry.
Note this can be quite terrifying but most of the time it's worth the risk. But how can you grow rich with a job? You can try to take the most important role in that industry. You can start side hustles to earn more in your free time. You can invest 10% of your paycheck every month so you grow your second income. Note, in most cases, it is better to be an INVESTOR than a BOSS. So put aside some cash you earn and start researching what to invest. But will the recession kill off my investments? That is currently possible.
To counter that you can learn better-paid skills to make you more resilient to most uncontrollable events. As long you are an ACTIVE employee you are in a good position because you are one of the reasons the company is making money. If you are on the other hand a TECHNICAL employee, try to learn a skill that will make you create money for the company.
Passive income is a great way to build your wealth over time. However, it is important to remember that there are also active ways to make money. There are pros and cons to each approach, and the best way to reach financial security is to diversify your income sources.
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