Passive Income: What is it and how does it benefit you?

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Updated: Jul 17, 2020 10:37 AM

What if you are able to ride through the economic recession without making a reduction in your family’s standards of living, your children’s higher education or your life goals? All of this is actually possible with the power of Passive Income.

passive income, save, invest, saving money, Irregular cash flows, flexibility in tenure, Bharat, informal mechanisms, Survey, India Savings Behaviour, chit fundsIt would only require initial set up and system, which can cater not only to an individual but in some cases to an entire generation.

The notion Passive Income has a lot of attraction to it, while for some it’s a way of life. Passive Income would be the money that you earn with little work or no active involvement, hence Passive Income. Active income, on the other hand, is the hard-earned money you receive upon slogging day and night in your business or your job. Active income requires us to be on our toes running around money round the clock. Well obviously, it would only last as long as daily effort is being put in. Passive Income is quite contradictory to the old school belief system of ‘you have to work very hard for money’.

What if I tell you that there is a world where you don’t work for money but your money slogs for you. That’s exactly what the concept of Passive Income does for you. It would only require initial set up and system, which can cater not only to an individual but in some cases to an entire generation.

The world we currently live in requires money to survive, sustain, and thrive. Hence, working for money is not a choice but an obligation. Billions of people today are in the quest of making money often forgetting the purpose of their existence, which is much more than just making money. This finally lands them in a job, business or profession which helps them to make money but isn’t anywhere near their passion or purpose in life. Such people often settle for a mediocre life, if not an unsatisfied life.

However, passive income can be a complete game-changer. What if you get to choose to follow your passion and money comes to your bank account month by month? What if you get an additional support system to take care of your lifestyle expenses while you enjoy your time with your family, friends, and your passion. What if you are able to ride through the economic recession without making a reduction in your family’s standards of living, your children’s higher education or your life goals? All of this is actually possible with the power of Passive Income.

Majority of us dream to fill our bank accounts with a lot of money, but the ones who actually have it, are looking for more time for themselves and their families, and that is exactly what passive income gives to an individual. It helps make the lives of business owners more comfortable who are facing a decrease in income due to recession or increased competition. For salaried employees, it gives additional support to aim for a bigger house, a better standard of living, and higher education for their children. For people approaching their retirement, Passive Income ensures a monetary cushion that their retirement fund does not allow for. Passive Income is that part of the income wheel that most of the people today are not even aware of, while others cannot imagine a life without it. Future stability and financial independence are the prospects that Passive Income can look after and act as a security against the inability to pay for the necessities in case of emergencies.

Recent studies have shown that most people in their 40s start feeling the pressure of their increasing living expenses and Passive Income is the support system that can ensure that the breadwinner of the family isn’t working alone. Passive income if implemented well can give a greater sense of stability in income as well as control on an individual choice on what to pursue in life, a concept very alien until recently. It’s time to slowly introduce this concept into our individual lives before our money worries and social obligations take charge of our lives.

As Warren Buffet rightly said, “if you don’t find a way to make money while you sleep, you will work until you die”. Why wait for the future, when you can achieve your monetary goals in an efficient and delightful manner right today.

by Arpit Arora, Passive Income Coach, AskTheWiseGuy

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