7 Reasons Why Freelance Writers Need a Passive Income Stream

Have you heard the phrase, "making money while you sleep"?

It's becoming a more common phrase thrown around the business and entrepreneurial world that describes the power of passive income, or basically making money while you saw logs. Create once, but reap the rewards for years to come, is what they say.

As a freelance writer, it has never been more imperative to be able to do this.

Passive income is a great way to supplement your work, no matter what type of writing business you have or what kind of jobs you take on.

With the ebb and flow of work, and perhaps not knowing if you'll have consistent income, making the process as quick, and straightforward as possible means that those worries could become a thing of the past.

And if I'm being totally open here, as a freelance writer myself, these are the things I too, faced. Here are my top reasons why we freelance writers need passive income, and I'm sure you'll agree.

1. Keeps the money flowing when a client cancels

Look, none of us wants to think about losing a client. Especially if it's a good one who pays your invoices on time. But it happens.

Building a book of new business or filling an empty spot on your client roster is something that doesn't happen overnight but can be achieved with a bit more calm and ease knowing you have passive income to fill that gap temporarily.

Real-life: I learned this the hard way. When one of my retainer clients decided to take their work in-house, I was left with a 30-day cancellation notice and a bit of stress to make up that soon-to-be-lost income.

This forced me to re-focus on my passive income projects even more.

2. Stress Reduction

Without a doubt, mailbox money is a great financial strategy to reduce our personal finances woes. The simple act of knowing you have a stream of money coming in is a natural stress reducer.

If you're feeling a little more strapped for cash, there are still ways to add passive income - your career and side hustles might just need some extra work.

I would know.

Real-life: the cascading effect of a suddenly reduced income significantly impacted my wife, especially since she pays the bills. Knowing that money would come in was as much for me as for her and our family, a massive stress reducer.

3. Location Freedom

Probably one of the biggest drivers for many freelance writers is the ability to work from anywhere.

Since you don't necessarily have to go to a specific place to work to earn passive income, the freedom has a dual impact on your stress reduction as well.

Real-life: As I write this, I'm literally writing and earning a living from Europe. And for the record, my home is in the USA. Location freedom was and is HUGE for me.

4. It's Easier To Achieve Your Goals

I have goals beyond my success as a writer, and I'm betting that you do as well.

Maybe a goal is less stress, or perhaps working from Europe (heh-heh). If that's the case, then you've likely thought, "if only I earned more money, I could achieve my dreams more seamlessly…"

Well, that's just another reason why getting paid with your feet up is so incredible.

Real-life: One of my larger goals as a writer is producing a novel. It's more a passion project than a money-driven one. Still, now I'm able to actually dive into my deeper, more creative side.

5. No Stressing Over A Paycheck

The fact is that many people are paycheck to paycheck.

Look, I get it. I'd arguably offer that almost anyone reading this has lived in that stressful vice-grip. If that describes you, then adding passive income can be one of the most free-ing things you can do.

Trading time for dollars may be a current necessity, but it's no way to truly live.

Real-life: With hard work and support from my wife, I can say I've been unemployed and unemployable for nearly two decades now.

Escaping the paycheck-to-paycheck lifestyle was one of my most significant life accomplishments to date.

6. Freedom To Pursue Your Passions

It's time to go ahead and literally make some donuts now.

But look, when the golden handcuffs of a paycheck to paycheck life are in the rearview mirror, and you have some mailbox money coming in, you may well find yourself with the freedom to pursue your passions, or for that matter, your dream projects. Like, uhm, learning to make donuts.

Real-life: I mention donuts because part of my passion is to try donuts from some of the best donut shops around. Still in progress, but the bigger lesson is now I'm eatin' donuts on the road, worry-free.

7. It's Electric

Ok, what I really mean is it's exciting as heck.

Imagine waking up and seeing the sales that have poured into your account overnight. Imagine that very first sale hitting your account. The point is that there's a micro rush every time this happens and is a reason unto itself to create a passive stream.

This could be the only reason to do it in that it fires you up.

Real-life: Yeahhhhh, I pretty much just covered it. I'm jazzed every day!

The Final Word

The year 2020 and the pandemic should be reason enough for any freelancer to begin building revenue while you sleep.

So the final question is…what are you waiting for?