When you’re self-employed or working a regular 9-to-5 job, there’s no guarantee that your business will be successful or that your employer will keep paying you.
You could fail at your business or lose your job at any time. So, what do wise people do to achieve financial security?
They find ways to get passive income. It’s the best way to ensure you’ll always have money, even if something is out of your control.
Also, having a passive income allows you to make money while not working or sleeping. You can use it to buy the things you need and want or reinvest them into more passive income streams. Indeed, it’s the holy grail of financial independence.
Here are some great insights from successful and famous individuals who have made passive income a reality:
1. “It’s not how much money you make but how much money you keep, how hard it works for you, and how many generations you keep it for.” – Robert Kiyosaki
This quote reminds us that money is a tool, and like any other tool, it won’t do anything for you if you don’t know how to use it. But when used correctly, it can be a powerful ally in any situation, especially if you wish to aim your financial goals for yourself and your family.
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2. “You become financially free when your passive income exceeds your expenses.” – T. Harv Eker
When your passive income exceeds your expenses, you no longer need to work to earn money. You use your time freedom to do something more valuable to you such us spending the day with family or do the hobbies that you are passionate about, or even learning new financial and investment strategies to build up your wealth.
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3. “Never depend on a single income. Make an investment to create a second source.” – Warren Buffett
Let this quote remind you to diversify your investments. Having more than one source of income or investment is vital so that if one dries up, you’ll still have others bringing in money. You can invest in stock market, real estate, bonds, etc.
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4. “Money has the power to buy you things. But a much bigger power is in generating more money for you. Those who can manifest the latter are never short of it.” – Manoj Arora
Money is a powerful force in the lives of people. It can get you things and help you provide for your family, but it’s also the ability to generate more money for yourself. Those who can do this are never short of money because they know how to use it to make more and more of it.
5. “You need some quick wins to stay pumped enough to get out of debt completely.” – Dave Ramsey
When you’re in debt, motivation is the key to success. You can’t expect to get out of debt without being motivated.
When you’re feeling down about your financial situation and things don’t seem to be going well, it’s essential to recognize that quick wins are small victories that keep your motivation high and help you stay focused on your long-term goals, which are to get out of debt and build a solid financial future for yourself.
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6. “The secret to getting ahead is getting started.” – Mark Twain
When you start something, it’s like a snowball rolling down a hill. Once it starts rolling, it gets bigger and faster and harder to stop until it eventually becomes an avalanche of success. When is the best time to start investing passively? Now is the time to do it; your future self will thank you for that.
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7. “The greater the passive income you can build, the freer you will become.” – Todd M. Fleming
When you earn passive income, you can spend less time working and more time doing the things that matter to you.
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8. “Profits are better than wages. Wages make you a living. Profits make you a fortune.” – Jim Rohn
Wages are the money you earn from being employed by someone else. They help you pay your bills but don’t make you rich. Profits, on the other hand, are a different story altogether.
They are profits that you make yourself by buying something and reselling it for more than what you paid for it. These earnings can then be reinvested in the business or used to buy things you want and enjoy. In profits, the sky is the limit.
9. “Almost any man knows how to earn money, but not one in a million knows how to spend it.” – Henry David Thoreau
Find a balance between saving and spending. If you focus too much on saving, you’ll miss out on experiences worth the cost. If you focus too much on spending, your savings will dwindle, and you’ll have nothing to show.
10. “Money won’t create success, the freedom to make it will.” – Nelson Mandela
If you’re working a job that doesn’t light you up or working two jobs to sustain your living expenses, this quote is for you. You deserve the time freedom to create success by doing what truly lights you up. It can be something you are passionate about and, at the same time, gives you economic security.
11. “The secret to creating lasting financial change is to decide to pay yourself first then make it automatic.” – David Bach
By committing to pay yourself first, you promise to yourself that you will prioritize your future. It can be as simple as setting up an automatic transfer from your checking account into your savings accounts or as complicated as setting up an investment plan with a broker. A part of your income should be invested and saved for yourself. The important thing is that this process is automatic.
12. “You cannot have a million dollar dream with a minimum wage work ethic and not having passive income.” – Stephan C. Hogan
It depends on what you want to achieve. The key to achieving a million dollars worth of dreams is taking advantage of opportunities and having the right mindset. Wealthy people like to grab the opportunity to invest passively because they are aware that it can improve their financial life.
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14. “Money makes money. And the money that makes money makes more money.” – Benjamin Franklin
Money is an investment, as it can be invested in something else, such as stocks or real estate. The process is cyclical, with each investment creating a more enormous profit than the previous one. This can become exponential, and the compound interests will result in a massive pile of cash.
15. “Live below your means but within your needs.” – Suze Orman
The general principle of financial health is to earn more money than you spend and be able to afford the things you need to live a healthy life. If you spend more than you’re making, it’s time to cut back on unnecessary expenses. Conversely, it’s time to start saving if you have enough money after paying all your bills and expenses on a monthly basis.
16. “Wealth is not about having a lot of money, it’s about having a lot of options.” – Chris Rock
By working hard and saving as much money as possible, you can buy yourself options down the road. You can take classes, get a formal education, or start your own business. All of these things will help you build great wealth over time. Just like rich people, they always maximize their money through wise investments and get more assets to gain abundant wealth.
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17. He who makes $25,000 annually passive income is more enviable than he who earns $100,000 annually through a salary.” – Mokokoma Mokhonoana
When you make money from a job, you must put in the hours and be on-call when someone needs you. On the other hand, passive income is money that just comes in. It’s not tied to your time or energy, so earning is easier.
18. “In today’s uncertain economy, the safest solution to be wealthy, be in total control and enjoy freedom for you and your family is to have multiple streams of income.” – Robert G. Allen
Because of globalization, job outsourcing, and other factors, most people aren’t safe in their jobs. The idea that one source of income is enough may have worked in the past, but not anymore. You must develop another passive income stream to be financially comfortable and secure in retirement. You can be a business owner by renting property and collecting rental income monthly from your tenants.
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19. “You have to make the shift from being a consumer in the economy to becoming an owner, and you do it by becoming an investor.” – Tony Robbins
For example, you invest in the stock market or real estate instead of buying depreciating items like gadgets and cars, which lose value over time. You are investing your own money into businesses that build products or services that retain value and provide cash flow.
20. “There is no security in a job, even a high-paying one. Be smart and don’t rely on just one source of income.” – Ray Higdon
It’s better to have multiple sources of income than to depend on only one. A diverse portfolio of revenue streams gives you more stability if one or more streams slow down or dries up.
21. If you haven’t created passive income, started a new business, or expanded your knowledge to earn more income during this challenging time, not having time is no longer an excuse” – Jacques Scherman
Time is the most valuable currency you can have, and if you haven’t used it to grow your business during the time of your biggest challenge, you’ve missed out on a huge opportunity. If you haven’t yet found a way to earn more money or create a passive income.
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