3 Reasons Why Passive Income Is Important

3 min readAug 30, 2022

I was excited about this podcast. It was great chatting with Arpan Kumar Chandel. What? Do you not recognize the name? Okay, let me try again with his stage name. I had King Rocco in the house!

King Rocco has become a name since his stint on MTV Hustle in 2019.

I enjoyed talking with him about music. It wasn’t over there. We talked about the Indian rapping scene, the music industry today, and because it’s Figuring Out, how could we miss discussing financial opportunities for a musician, singer, or anyone in the industry?

KR discussed passive income in his field and why it is so important.

I want to share my perspective on passive income and the benefits of passive work for everyone who can do so.

Passive income: what is it?

An individual with passive income is someone who earns regular income through work that they have already completed or does not require much work daily. Passive income includes royalty earned from books, percentage made from website links, rent earned from property, and interest acquired from savings accounts. The steady flow of passive income will provide long-term security.

Why is it important?

Passive income is often described as money earned while sleeping. Your money works for you as you passively benefit from your efforts, commitments, and investments.

You can benefit from passive income in five ways:

1. Financial stability

In the quest for wealth, financial stability is a crucial milestone. You are on the right path if you are confident in your ability to weather a solid economic storm.
Moreover, if you can count on money coming in without working for every penny, you’re on your way to financial stability. Your finances will feel more secure and confident as more money comes in.
Less stress allows you to take a step back, see the big picture, and make wiser financial decisions, increasing your stability.
This is one of the main reasons passive incomes are so significant for personal finance.

2. Freedom To Pursue Passions

Having passive income roll into your bank account is like escaping the paycheck-to-paycheck lifestyle. You can pursue your passions or dream careers suddenly. It’s easy to end up in a job you can’t stand when you rely on active income to make ends meet. Quitting a job is tough. When you don’t have enough money to cover your rent due in 2 weeks, quitting a job can be incredibly challenging.

3. Maintains Financial Consistency

Passive income is also substantial because it can help improve your financial consistency over the long term. When it comes to staying consistent in your financial life, the more passive income you develop, the easier it will become to remain consistent in everything you do in terms of saving, investing, and giving.

A sound financial situation relies heavily on passive income. You can pursue your passions when you have a steady stream of passive income flowing into your finances. Passive income increases your options.

It’s hard for me to think of any downside to earning passive income, from improving your financial stability to reducing your stress.

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Listen to this entire conversation here.