Do you want more time AND more money?
Do you want less time AND less money?
Unfortunately, most people choose less time and less money because they work a job their entire life.
Jobs offer the same income year after year and if you are lucky you will get a bonus that allows you to keep pace with inflation. Regarding time, you are expected to put in a minimum of 40 hours every week. As you get promoted your responsibility will increase and so will your time. This is what I like to call linear income.
But what if I told you there is another way. One where you can actually earn more money and spend less time getting it.
Welcome to the world of passive income.
Welcome to the world of true freedom.
Passive income allows you to receive money at all times of the day. You can even be sleeping and earn income if it is from a passive source.
The best part of passive income?
It is scalable!
Passive income is what I like to call exponential income.
Unlike a job where you are trading time for money, passive income allows you to trade a lot of time upfront for exponential gains down the road.
What’s the catch?
Passive income can take a while before you start seeing substantial returns. Depending on what you do and how lucky you are, it can take anywhere from one month to years to obtain substantial passive income.
But once you start to gain passive income it will snowball to exponential gains.
Because you can keep reinvesting your gains into the same passive income source or begin to explore other lucrative options.
As you see, a job will allow you to make a good starting wage but overtime the growth is linear. You may get a 2-3% bonus to match inflation (if you’re lucky), but when you are old enough to finally retire your wage will have only increased on a linear scale and your time investment will be massive.
Passive income, on the other hand, will take some time to reach the level of your active income but once it does you are ready to Rock and Roll! You can even continue to work your normal job AND get passive income if you set it up that way. Spend time watching Netflix and start working on passive income sources.
Sources of Passive Income
The easiest form of passive income by far is starting a passive income dividend-oriented portfolio. I prefer to use M1 Finance for their easy to use platform and fractional share investing. Check out my M1 Finance review for more information.
A diversified dividend portfolio will start out slow but can produce great dividends each month. Dividends tend to grow over time and if you keep reinvesting the money you will see exponential returns. *Affiliate link below
Real estate is another good form of passive income. You invest money upfront to purchase the property and rent it out monthly. It may take 5 or so years to break even but after that it’s all profit baby! An added benefit is you learn how to deal with people and fix things.
Websites work the same way! You can purchase websites that earn money each month and just like real estate it can take a few years to break even but will turn to profit afterward. Empire Flippers or Flippa are platforms where you can purchase websites. You will need to create a new marketing strategy once in a while to maintain the traffic but that won’t take too much time.
Rather than purchasing a website, you can create your own! Affiliate income from blogging is an amazing source of scalable income. You can include affiliate links like the M1 Finance one above and if readers click and make a purchase then you get a share of the income.
Affiliate income doesn’t cost more for the readers, it simply gives a small commission to the blog paid for by the company. A word of advice is to only post affiliate links that you truly believe creates value for readers. M1 Finance, for example, is in my honest opinion the most beneficial investing platform on the market.
You can literally start a store tomorrow by starting a dropshipping store. Dropshipping is where you operate a website with products but rather than shipping the product yourself it is done by the manufacturer.
A common model for dropshipping is to source products from AliExpress, create an online store using Shopify, and begin selling. You will have to play around with marketing to generate traffic, but assuming you have a good following and product, you can sell while you sleep. Imagine waking up with a notification on your phone that you sold $100.
Is Passive Income Easy?
No, passive income isn’t easy or an overnight hack. Passive income takes time to develop, and it takes a strong mind to keep going.
You will want to give up after seeing minimal results starting out. You will undoubtedly take some risk. Your family and friends will doubt your intentions.
Don’t give up! If you can start now and grind it out, I promise you will achieve exponential returns and live financially free and have more time.
Time is your most valuable asset so don’t waste it doing what other people want you to do. Don’t work at a job where you trade time for money. Job’s aren’t scalable and it’s even worse if you hate your job. Start the journey of passive income today.
Looking for more inspiration?
Book: The Four Hour Workweek
Podcast: Mindset Mentor