Updated: May 19
Wanna know the holy grail to financial freedom? It’s the one thing all financial gurus are obsessed with, and for good reason! If you ever dreamed about waking up to text messages or emails with the notification “you’ve received payment”, then this is for you!
What could be better than not working and still getting paid? It’s the polar opposite of what you and I were from kindergarten, whether that stuck or not is a whole other thing… Whether we like it or not, our system is built on labor, human labor, and if you don't have humans labouring, it can be pretty tough to keep the big wheels turning.
The good news is that doesn’t have to be you anymore, if you’re fed up of labouring away for an hourly wage, you need to learn about Passive Income. Yes, capitalized, it is that legit.
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What in the world is passive income? Whether you’ve heard about it or not, you need a refresher, just like compounding (write and link here), it is money magic! Plain and simple. Now, maybe there’s a misunderstanding and mythical aura around passive income, no one ever said you don’t have to work.
But the truth is work isn’t always bad! If you don’t like work, maybe it’s just the kind of work you do! Now flip this on its head and find something you are totally passionate about, something that instantly lights you up, wouldn’t you want to swim in it? To talk about it? To share it? And what if other people actually enjoyed it?!
Human beings may sound like egotistical jerks sometimes, and yeah, sometimes we are, but we also have some awesome qualities, like most of us really love sharing and we do light up (we actually do! Neurologically speaking, that is), when someone appreciates something we’ve created.
Boom, key word, creation! One of the most interesting ways to create passive Income is all about creating something epic that the world wants.
But let’s take a step back and really understand what passive income is.
What is Passive Income?
Passive income is money earned without your direct and continuous effort.
It means breaking the deadly bond in trading time for money. Yes, it would mean quitting your job, which is not for everyone, that’s for sure, but everyone can absolutely benefit from passive income. Yes, even those who love their corner offices.
Why you Need Passive Income
Jobs are awesome, but they are not the only way, nor the most efficient way of making money.
Think about it, the average employee works 40h per week. Can she work more hours? For sure, but only up to a maximum amount, we all need a life, am I right?
So, there’s an immediate cap on your income, bummer…
But, wait! Can you increase the amount of money you make in that same hour? Fo shiz,
But, wait, again! Can you be banking and stop working for that hour altogether? Bingo! Passive income, babe.
You create something that works for you, in your place, so you don’t have to keep slaving away.
The creation process is what requires work, it’s not always fun, it doesn’t usually happen overnight, but dang is it worth it.
True financial freedom, that’s what I’m talking about.
Are you beginning to see the light?
Now, what if we were still down to keep working? Well, managing money for success is a lot of risk management, and between a pandemic, recessions and technology, jobs.are.changing.
The sooner we all accept this, the easier the transition will be. So either way, investing in creating passive income is a smart money move.
What are the best ways to create passive income?
1- Sell your knowledge
By far, the most accessible way to generate passive income is by selling your knowledge. This is known as an infoproduct. The online education game is a game you want to join, and whatever self-limiting belief you may have justifying your absence from this game, I assure you, is an illusion.
Do your research, start brainstorming and creating, you’ll see, the hours will fly by! Yes, it takes time, but learn to let time flow instead of watching a punch clock, allow your creativity to take flight!
2- Affiliate marketing
Don’t want to create a product? No prob! There are other people ready to lend you their products to sell.
This also relies on you creating content, here are the golden questions to determine what to do
A- what do I have to share?
B- what do people want to learn?
Trust me, the internet is more than ready to tell you what people want to learn, check out reddit, quora, social media and google to scout out the land. The moment you find the intersection between what people want and what you’ve got to share, congratulations, you’re one step closer to passive income!
Once you start earning some more cash, you make that cash work for you, and what is that? You guessed it! Passive income!
From investing in the stock market and earning dividends to buying rental properties, when you’ve got more money to play with, you’ve got more options to generate passive income. The key is to make that money work for you.
The awesome news is that it’s easier than ever. I worked in banking and wealth management for a decade, buying a stock used to be hard work! Now, you can hire an online-advisor and specify that you want a dividend producing portfolio and start generating income with no minimum investment to open your account. As you reinvest or contribute to your account, your returns will grow and so will your passive income.
Come to think of it, we are all working towards making passive income our main source of income, after all, what is retirement all about?
Wouldn’t you like to skip the traditional model and live a life aligned with your desires right now? Maybe you don’t want to spend 40+ hours in a pantsuit and rush through your younger years, to lounge around in your 60s and 70s, maybe you want to take a year off work right now and travel the world? Why not?
Wanna know another secret? You don’t actually need a million dollars to live the life of a millionaire! Taking back control over your time is step number 1, passive income, baby.
Remember, just like retirement, it’s not free money, it’s money you work for upfront and then you watch it trickle in, completely detached from your hourly labour. What kind of like could you create if you invested your time for a year and secured financial freedom for the next decade?