Passive Income: Why it Matters; the Possibilities & Concerns Surrounding it

Passive income is income you can earn while being passive and doing significantly less work or no work at all after you start earning; it can lead to financial freedom and make anyone become a boss and master of their own destiny. Passive income is earned in a different way from active income.

To earn active income, you have to engage in work, usually for a fixed number of hours per day, week, or month—or as the case may be—and you have to get to work on time and complete a number of hours of work related to your job description.

On the other hand, to earn passive income, you have to do a certain amount of work to set up a passive income system or stream, or implement an idea; but over a period of time, the amount of work would likely continue reducing, or it may not even be required once the stream or system is up and running.

Passive Income Streams: 10 Important Things You Need to Know

Imagine using your time and effort to write a book, and hire an editor to edit the book and someone to design the cover before you put it on Amazon and start earning money, regardless of what you are doing on any given day; or, imagine setting up and selling affiliate products every day on a blog or website. These are just two out of several ways you can use to earn passive income.

Why passive income matters

Majority of people don’t earn huge amounts of money: the average person is not a high income or salary earner. Most people are limited by their experience, level of education, and the number of hours they can work, physically, and concentrate, mentally, on a given job or task that can earn them money.

Passive income matters because earning it can save you much effort and time on an ongoing basis, and make it possible for you to concentrate on family and friends or other opportunities you may be interested in.

You can earn passive income online or offline through passive income streams and easily supplement your active income; in many cases, you can even replace your active income with passive income.

Unlike active income whereby your potential to earn can be limited by your experience, education, or the number of hours you are expected to work, there are no limitations on passive income when it comes to earning from passive income streams. As a result nobody, apart from you, can cap your passive income.

Any passive income stream matters because it can give you freedom, complete control, and the potential to earn while you are sleeping, playing games, travelling, or doing whatever it is that you love doing.

Although many people may agree that money is money, regardless of how it is earned, earning money from passive income streams can give you freedom from the daily grind of traditional active income streams and provide you considerable or sufficient time to focus on the things that are more important to you.

Passive income possibilities

Passive income streams can open up money-making possibilities that might never come your way if you focus only on active income or active income streams; it can enable you to earn money in ways that don’t usually require a lot of effort and many hours of work, especially after you start earning. This is really huge!

If you sense that working for many hours is limiting the amount of time you spend with your family and friends, and is wasting very important opportunities that can take you to the next level, then you may have to engage in passive income streams which can make a great difference in your life.

The following are some major possibilities of passive income:

1. Passive income can lead you to financial freedom, especially if you can earn it from the internet or online world. It is possible to earn income at any time of the day and from any part of the world without being tied to any particular job or schedule.

2. Passive income can give you control and make you be your own boss. When you are engaged in passive income streams, you won’t have to answer to anybody: you can decide what should be done, when to work, and when not to work.

3. Passive income can inspire you to look for new streams of passive income and choose the most appealing ones that suit your goals and schedule. There would always be an option to choose the passive income streams you genuinely like; based on your interest, you would always have the liberty to choose the best streams.

4. Passive income can open you up to more passive income streams which can earn you unlimited money, especially if you use as much time as possible to set them up and make them work.

Passive income concerns or risks

Most—if not all—forms of income-earning streams or methods come with one type of risk or another, or even many risks! There would always be some risk attached to investing one’s effort, time, or money. That’s how life works.

We discussed some possibilities of passive income in the previous section; now let’s discuss some concerns or risks of passive income so that you can be aware of what to expect when setting up passive income streams:

1. It takes time, effort, and possibly little or no money to establish passive income streams from start to finish: you may need to put in considerable or much time and effort to set up a passive income stream, especially at the beginning, before passive income can start flowing into your pocket.

2. Passive income doesn’t usually start rolling in immediately, especially when you just succeed in setting up the first one. Even after you successfully set up one or more passive income streams, you may have to be patient or dedicate a significant amount of time to market your product or stream before you can start earning any income.

3. You may need to diversify or invest time and effort into more than one passive income stream in order to increase your chances of earning a healthy passive income. Why? Because one stream of passive income might not always be sufficient enough to make you become financially free and secure.

The best way to reduce the risk of not making any or much passive income is to set up more than one stream of passive income, especially the best ones. If you have more than one stream, even when another or other streams slow down or stop, you would still have chances to make passive income from at least one stream.

4. It might be too risky for some people to earn passive income by engaging in passive income streams because little or no work is required; as a result, such people who are consciously or unconsciously more passionate about engaging in activities that would make them work consistently, may end up losing interest in passive income streams. And losing interest could make them stop engaging, and lose income.


In my opinion, the possibilities and benefits of setting up and establishing passive income streams far outweigh any concerns or risks. As long as anyone is ready to put in considerable effort and time to make passive income streams work, then earning passive income would be the best way to achieve financial freedom.

Regardless of the decision you take—whether or not to engage in passive income streams—it’s advisable to engage in both active work (active income streams) and passive income streams so that you can earn more money than you would usually earn without passive income streams.


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