There are a number of benefits for those who want to go self employed. The main one that most people think of is that they get to work for themselves and set their own hours. Also, the income potential is sometimes higher than it is in some careers. However, the biggest benefit of being self employed is one that most people do not think about: passive income.
The reality is, your job will never offer you passive income. Regardless of whether you are making 7 figures a year or 4 figure, the second you stop working, your money stops coming in. The only way to keep making money is to keep showing up for work, day after day. The only time you make passive income is during paid vacation.
The problem with that is that you have very little freedom. After all, most people only get from 3-6 paid vacation weeks a year, and the rest of the time they have to be working whether they like it or not. Having passive income gives you the freedom to be doing anything you want while the money keeps coming in. That does not mean you can never work on your business, if that is what you love to do. However, you do not have to.
Most people think of income purely in terms of grand total, but this really is not accurate. Instead, your earning power should be calculated by how much you make, dividing by how many hours it requires. This sheds a whole new light on the subject of income. For instance, with this formula, someone making $40,000 a year but working just 40 hours a week has twice as much earning power as someone making $40,000 a year but working 80 hours a week.
In other words, the more passive income you have, the more freedom you have. The only way to achieve passive income is to go self employed. There is no need to get an expensive loan for self employed people and start a brick and mortar business, as many people think is necessary. Instead, the internet offers some incredible passive income opportunities. It is very cheap to start an online business, and the earnings potential is very high.
