Why Passive Income?

About 3 years ago, I was faced with a situation where I nearly had to leave my 8 – 5 employment, so I can look after my sickly baby. It was the most strenuous time of my life. But funny thing is, I was ready to leave in a heartbeat.

I guess I had told myself that I will make a plan in time, what was important at the time was making sure I was fully there for my baby.

Sadly, my little one passed on and I didn’t have to quit, but her lengthy hospital stay left us with memories and a pile of bills to pay.

Life could not be the same for us, our lives were disrupted, and we had to change to adapt.

It became evident that we were not able to call ourselves financially secured by just having one source of income and an Active one for that matter. We had to look at our situation and re-evaluate all the important things, FINANCIAL HEALTH being one of them.

Most of the world lives in accordance to an active-income. They earn only based on the time that they work. The wealthy and the money savvy individuals, however, operate on another set of standards, which involve a detachment of their physical time for the money that they earn. They earn a passive income

One of my favorite books by Robert Kiyosaki, Cash-flow Quadrant , where he explains this so well. Understanding the Cash-flow Quadrant was an ‘aha’ moment for me. Just when I thought there were not many options for us either than winning the lottery, a solution called Passive Income revealed itself. Not only is our focus on building Passive Income but creating multiple passive income streams.

Cash-flow Quadrant

Passive Income is where you get paid repeatedly for work that you did once.

These aren’t ways to turn your time directly into money. Instead, they are ways to plant seeds, so your money grows, even when you’re sleeping or at the park walking your dog.

In other words, even when you’re not out actively trying to make money.

It’s all about the concept of passive income. Just like a farmer who plants a crop, tends the fields, and harvests the produce, you can plant financial seeds that will produce income.

It takes some work up front, and some maintenance along the way, but if you plant passive income seeds that suit your climate (aka your personal preferences, interests, skills etc), you can bring in an awesome harvest.

In contrast, Active Income can only be earned by directly translating your time for money. Whether it’s a pay-per-hour job or a salaried one, the amount of money you make is directly correlated to your time.

With Active income, when you don’t work, you can’t earn. If something were to happen to you and you were incapacitated for whatever reason through an injury, illness or some other problem, you would lose your ability to earn. If, for example;

  • You were an athlete and you injured yourself so badly that you were unable to continue your occupation, you would lose your ability to compete and earn money altogether.
  • If you work as a contractor or a builder, without mobility and the usage of all your limbs, how could you work? how could you continue to earn money?
  • If your car broke down and you didn’t have money to fix it, how could you do your duty as a driver or meet clients? It would certainly become far more difficult.

Can you safely say that, you have built a safety net for you and your family? If not, I suggest you think about it

  • Understand your income bracket possibilities and limitations.
  • On which side of the Cash-flow Quadrant are you earning from?
  • All the different income streams are represented in the Cash Flow Quadrant.

I certainly feel much better now that we have started to build our right side of the quadrant. We may not be where we want to be yet, but we’re sure on our way there. And with this option, there are endless possibilities that can not only improve our financial health but afford us the life we dream of.

Let’s chat and I can share one or two ways in which I am building a Passive Income or get our free Passive Income ideas e-book


If you don’t find a way to make money while you sleep, you will work until you die. ‘Warren Buffett’


2 Replies to “Why Passive Income?”

  1. […] Not only can network marketing help you with building a business but it can help you move from continuously being an Active earner to a Passive earner. This is moving to the right quadrant of income. Read more about Active and Passive Income. […]

  2. Very amazing and informative content! Thank you for making the effort! Look forward to more.

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