Time is the most important resource we all have. Time will run out and you can never get it back. Time is the one link between you and every person in the world. We all have 24 hours in 7 days a week to work with. If you work a steady job think about your day. Your job takes up a large portion of time 5 days a week. You are trading time for a set payment every month. Now if you calculate your cash flow (income after expenses) you can see how long it will take to get rich. It is extremely hard to get rich when your income is directly correlated to the energy you exert every day. One option is to work harder to get a promotion, raise, or new job. However, your expenses will probably increase when your title or paycheck improve. This makes saving very difficult. Why not create passive income?
Passive income is the secret to wealth. Passive income is money that your money earns you. Passive income doesn't require time to find its way to your wallet. When you can successfully detach your time away from a money system, you will eventually become rich. Sounds easy right? Well....not necessarily. In order to get a strong passive income stream, a lot of work has to be done to create passive income vehicles.
- First, you have to understand that you will work extremely hard upfront without getting paid. When creating for yourself, money doesn't come until the system is created and operating. It's a lot of work to build passive income vehicles such as real estate portfolios, stock portfolios, royalty checks, or a business.
- Second, you have to find the time to put in the work. The difficult part about this is each passive income vehicle is a pool with sharks swimming. The pros swim in these waters to survive. They aren't in it for extra money. If you don't put in the time to really understand what you are doing, you will get swallowed up. Time will be a challenge if you have a family and major responsibilities. A supportive spouse and family is essential in this area. Communicate with them and include them so they know that your work will pay off in the end. Being up front with your family will eliminate a lot of distractions and you can focus on the details of your endeavor.
- Lastly, you must be willing to walk away. Income isn't passive until your time is not attached. Building a system to run itself requires a different plan than building a system that depends on you to run it. Have an exit plan at the start and tailor all of your actions and energy into eventually walking away with consistent income.
If you study wealthy people you will notice that they all have mastered the art of creating passive income. Even if they work a business, their businesses have passive income. If you want to be wealthy, you must generate different streams of income not dependent on your time. You can only do so much in 24 hours a day. Work hard to create money that will work harder for you. This is the definition of passive income.
