Passive Income Blog

Once you understand and implement the concept of passive income, you will be well on your way to true financial freedom. Of course, there are a few different ways to generate passive income I will discuss a couple of them here.

Which do you prefer?

• Go to work and receive a salary for a day’s effort, exchanging time for money; or
• Receiving a passive income month-after-month, year-after-year with very little effort invovled.

If you can grasp the principle of passive income and be on the look out for opportunities to allow passive income into your life, then you can still work your day job and slowly invest into passive income streams to build for your future.

So what is passive income?

It is all about creating monthly cashflow to be on ‘automatic pilot.’ Passive income is money that comes to you month in and month out WITHOUT you physically expending any effort to earn it.

There are quite a few choices available for creating passive income streams, and it can come in several forms. 

Now, is this type if income a GOOD type of income? I hope you agree that it is. In my opinion, passive income is the most superior income that anyone can possibly have.  Passive income keeps flowing to you whether you do anything for it or not.

Don’t confuse passive income with residual income.  Passive income and residual income are sort of the same but not quite. Residual income is money made from doing work once over a period of time and then collecting ‘royalties’ on the work done. Actors, photographers and writers receive regular income off the resale of their original work. In addition, multilevel marketing and insurance companies offer a residual income potential. In the beginning, residual income opportunities require a great deal of work and regular attention. Any money made from this type of business is earned [residual] income, not necessarily passive.

For example, Robert Kiyosaki, the best selling author of “Rich Dad, Poor Dad” earns a residual income through the royalty of his book. He spent time writing the book once, his publisher published the book and the book stores sell his book. He does not need to be actively involved in selling his book and still receives a residual income off of the royalties on a regular basis.

A couple examples of passive income are:

• Income from investments;
• Capital growth from a real estate portfolio.

If you are one of those people who, for whatever reason, think that passive income opportunities are too risky or too complicated or whatever, then you may not have the proper mindset to venture into this arena.  Perhaps you should think of possibilities rather than impossibilities. Only victims may deny themselves the opportunity of passive income.

Start thinking like a winner. It all starts in your mind. Change your perception, educate yourself on the ways and methods to receive passive income and start off slowly. When the money starts to flow in, I GUARANTEE you will like it!

I’m sure that you have heard the old saying that goes, “The rich get richer and the poor get poorer”. Well, there’s a reason why the saying exists, and that’s because it is 100% true. The rich do get richer, and the poor do get poorer. But why is that?

First lets take a look at why the rich get richer. The wealthy have their money working for them, so they don’t need to work in order to make money. Their investments provide them with capital gains or passive income. The wealthy focus primarily on these ”capital gains” and “passive income streams” instead of “earned income”. The rich are constantly creating and building assets with the money they have. They create or build more assets to provide them with more sources of passive income. The wealthy don’t need to worry about layoffs or taking days off because they don’t work for their money, their money works for them.

Remember, passive income is the key to becoming truly wealthy.

The poor on the other hand focus too much on “earned income”. The main source of income for the poor is “earned income”, and it usually remains the same over long periods. In the meantime, the expenses of the poor generally increase over time. A new child comes along, medical bills need to be paid, gasoline prices keep going up, taxes go up, etc. And while all this is happening, the amount of money a poor persons earns remains that same. That’s why the poor get poorer. They make barely enough in earned income to cover their expenses. The rich on the other hand make more than enough in passive income to cover their expenses and then some.

T. Harv Eker says financial freedom is, “When your passive income exceeds the cost of your desired lifestyle. You can make millions, but if you haven’t mastered the art of creating multiple streams of passive income, you won’t ever acheive true financial freedom.”

If you are interested in reviewing several passive income opportunities, please email me.

Email Chad

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