As we grow up, one question that we are asked repeatedly is ‘What do you want to be when you’re older?’
You may have said that you want to be a doctor, astronaut, firefighter, chef, and so on.
But looking at those job titles, they have one thing in common, and that is they are an opportunity to make an ‘active income.’
That means that to make money, you have to put hours into it to live continually.
Now the idea of passive income is almost foreign to some people. The first thing that comes to my mind is a generation issue.
It’s understandable as your parents would follow these steps:
- Go through the education system, from 4 – 18 and learn about various subjects and acquire the knowledge you most likely won’t use again
- Attend University and achieve degrees to get work in sectors you will spend the next 50+ years working in
That is what most of us are brought up on and what society tells us is the ‘correct’ thing to do.
We aim for a certain job, get that job, make money while also trying to save money at the same time. Then finally they retire.
But most of those people will retire unhappy has they spent most of there lives limited as they working for the man.
While that is starting to change, people still to think that is the only direction to follow
However, nothing stays the same, and over time things evolve. Look at technology, e.g., think of where we were at ten years ago as compared to now.
A lot as changed, right?
Well, that goes for how people make money and the idea of passive income at this age is the way forward.
So What Exactly Is Passive Income?
It’s making money passively. Usually, every month with little to no effort required.
This is the opposite of working a pay by hour job.
You don’t have a salary cap which is one of the main attractions as the sky is the limit when it comes to potential.
Starting a passive income stream does require you to invest your time and work hard effectively for nothing.
But once set up you can have an evergreen source of income coming through which you can live off.
How Do Passive Incomes Work?
Let’s have a look at Youtube and how the platform as come up leaps and bounds within the past ten years.
What started as a site for entertainment as now become millions of peoples sources of income.
How it works is companies advertise using Youtube which they then put in videos.
Creators will upload their videos and have ads placed within them.
That means we have a money cycle consisting of:
Advertisers > Youtube > Creators (Those making the videos)
As the company gets bigger and more people to use it as a source of entertainment, more money is then put into it.
That is great for everyone involved.
So what does this mean, well that this idea of passive income is becoming not only increasingly popular year on year but more common.
Youtube is just one example of a passive income, but there are so many out there.
Once you figure out how to acquire it not only will you get hooked to it but you won’t look an active income in the same way again.
You are now reading this likely wondering how do I capitalize on it.
As money doesn’t just come in with no effort, you have to act for it to work.
Now the above idea is an example of how you could get income passively going forward from today through from 2020 onwards.
Now there are a few things you will need to do in order to get.
First off, you will need a plan, and that can be done by answering these questions:
- What product/service are you going to sell?
- Once chosen, Is that area to saturated? Can you bring something unique to the table?
- What is your audience, and how are you going to gain one?
How Powerful Is Passive Income?
Passive income is robust for so many reasons. It allows you to do many things that you wouldn’t have thought it possible.
If you have ever worked a regular job at some point, you may have become frustrated at some of these aspects to name a few:
- Working long hours and having no control of when you work
- Not being able to afford that luxury item, that’s out of your salary budget
- Limited vacations
Working for yourself means you can do so many things. You can make more out of every moment you have.
You can book that extra vacation without needing employers permission.
Let’s say you are working the standard five days a week and 9-5.
That’s roughly 40 hours a week.
Now if you can get that number to 5-10 by managing your own business, then that’s a considerable saving in time.
You have 30+ hours to do all the things you want to.
There’s a lot of opportunities out there at your disposal, so achieving this is more realistic then you think
If you act on it and are consistent with your plan of action, then it’s only a matter of time before you make things work and achieve the passive income your after.
That brings me back to how I started this post if someone asked you now what you would want to do in 5, 10, 15 years, what would that be?
Would that be working for someone else or your self?