Why Passive Income matters ? - The Conversation Between Daniel and Mike
Here is the story. Daniel, the company’s founder, having his salad. Next to him was Mike, a mid-level employee who had been with the firm for 5 years. Mike admired Daniel’s success, nut couldn’t help scratching his head over one thing.
“Running a business is too risky, boss,” Mike said between having his salad.
“Someone with your talent could easily land a high-paying job at a big tech firm. Why not just play it safe?”
Daniel smiled, setting down his fork.
“It’s quite interesting you say that,” he replied. “But I think relying on a pay check is actually riskier.”
Mike puzzled.
“What do you mean? I have a stable income. you deal with all the business headaches.”
Daniel leaned forward
“Let me ask you something. What happens if your boss tells you tomorrow that the company is downsizing, and you role is cut?”
Mike hesitated
“Well… I’d panic, I guess. I’d need to find a new job. But that takes time. I’ve got a mortgage, car payments, and credit cards to pay off.”
“Exactly,” Daniel said. “You see, most people think a steady pay check is security. But in reality, it’s a single point of failure. One salary, one source of income, and your entire lifestyle depends on it. If that stops, your whole financial structure crashes.”
Mike looked uneasy.
“But running a business has ups and downs too, right?’
“Of course,” Daniel said. “But I’ve built multiple income streams. My software sells on its own. I get affiliate commissions from tools I recommend. I rent out an apartment in the city. Even if one stream slows down, the others keep flowing. That’s what call passive income.”
He continued, “I’m not just working for money, I’ve made money work for me.”
Takeaway
It’s not necessary to run your own business. The key is to let money work for you.
Mike, like most employees, was trained to think job = safety. But he didn’t see was that Daniel had insulated himself from risk by diversifying his income beyond his time.
Passive Income = Real Security
i. Jobs can end, but passive income continues as you build diverse income sources.
ii. Additionally, you can decrease the amount of time you spend trading your time for money, as your passive income contributes to your overall earnings.
iii. Losing a job no longer = no income. In fact, having multiple streams of income = flexibility.
It’s Powerful!
Having multiple income sources can help you build wealth more quickly! Just imagine having extra income while you work in the office.
Ultimately, this can create a sense of freedom, making work optional rather than a necessity — transforming it into a lifestyle choice!
Every dollar you invest or additional system you build moves you one step closer.
Start building the system early.
Start small. Stay consistent. Invest in assets, explore new income sources.
You’ll reach financial independence (Level 4 of the pyramid) once your passive income covers your living expenses.
“If you don’t find a way to make money while you sleep, you’ll work until you die.”
– Warren Buffett
Next, we’ll introduce the concept of passive income.
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