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All of these ‘get rich’ gurus online today are banging on about making passive income. They see it as the key to financial success and the way for you to live a happy and financially free future. But what actually is passive income? Do we really need it if we want to become financially free? Or are there other ways? Let’s find out…

Passive Income

Making money passively means to do all of the work up front, to create an asset which will continuously pay you, even when you are not working. There are many different methods of creating this type of product, if you are willing to provide value to people interested in your area of expertise. Examples could be, collecting royalties from music or video you have created, Sales of books or courses you have created online, ad revenue from a website, rent from a property you let out, and the list is endless.

Once you have done the work upfront, there is often little to no more effort to put in on this income stream, apart from a bit of maintenance and customer service. As your workload eases, you will begin to make money at any time of the day, even when you sleep. I mean, imagine that!!

So what’s the big idea?

The common dream with making passive income is financial freedom. If you can create enough assets to make enough passive income to cover your general costs of living, you no longer need to go to work. This lifestyle will mean you can choose when and where you do work and if you didn’t feel like it, you could just go to the beach. It wouldn’t matter because no matter what, the income you make without work will allow you to live anyway. 

You’ll be able to live a life of freedom. To choose what you do with your time and who you spend your time with. You’ll no longer need to answer to your boss and you’ll no longer need to be and do what they tell you. 

So you see why so many hold this dream… I do. Which is why I started the £1 a day challenge.

What’s the alternative to passive income?

The alternative is to trade your time for money. To go to work, follow your bosses orders and make just enough for you to live for the month so you can do it all over again. This is just like what most people do in their normal, mediocre lives. They trade their time for money until they are old enough to retire; Never having any real freedom. 

Sure, there are many successful people with jobs. People who work their way up the job ladder to end up living a wealthy and prosperous life. However, if they stop working today, their income would be gone. They’d only be able to live until all their savings are gone. For a true sense of freedom, you must try to build assets in your life that will give you some passive income. Your life will then become a little less stressed and a bit more free.

Thank you for reading…

I hope you found value from this post and are inspired to start working on gaining some passive income streams. If you are, let us know in the comments section below. I’d love to hear from you!!

If you’d like to learn more about making money online, perhaps you’d find the Online Business section of the Money Your Concern website useful. Investing your earnings is also a brilliant way to exponentially grow your wealth and make even more passive income. By checking out the Investing section of this website you’ll find many helpful tips.

All the best with your financial future.

Harry