The main point of investing is to make extra money. But, you might be surprised to know that there are many other reasons why someone would and should want to invest in passive residual income. Here are the main reasons why people invest in general and why I personally think investing in passive income is so important.
Maintaining Wealth
People that have a lot of money know that they will need to continue making money to support their lifestyle and to maintain their wealth. Having a lot of cash is great but if you’re not doing things to grow your cash faster than you’re spending it, you could run out of money in no time.
Because it is expected of us
A lot of people invest primarily because someone told them to, or they have come to learn that (just like getting an education) this is something that HAS to be done at some point. These people may not have any clear plans or goals and usually end up quickly losing most or all of their money.
It is very hard to be successful in investing without a plan and without goals. I have personally found this out the hard way. I Lost probably close to $100,000 dollars in the stock market until I realized that slow and steady passive income was the way to go. This all happened before I reached 30. Now, older and wiser (I hope), I also realized that small steady profits were much better than swiinging for the fence every time I made a trade.
I focus on low risk passive income strategies now and those are the strategies I teach on my site. It is a good feeling to know that someone else can learn and benefit from my mistakes, I like to think of it as my good deed to the world.
To meet future family needs
In the old days success was measured by the amount of kids you had. Children were seen as an insurance policy and were expected to take care of their parents when the parent was too old to work anymore. Today, that has changed a lot. Now, elderly people are finding that they need to take care of themselves, and in some extreme cases they are finding that they need to take care of their children AND even grand children. This changes a lot about the how people now think about success.
We live in some serious times and people are realizing they need to plan for these kinds of family expenses by investing in passive income. Income that they can receive without having to punch in at a 9-5 job because they can make money from the comfort of their own home.