Imagine that you needed to move a big pile of rocks from one place to another, there are two different ways that you might think that you could possibly do this; one would be to grab the rocks in armfuls or handfuls and try to carry them from one place to the other, but on the other hand you could also rent an Excavator and use a big machine to get the job done much more quickly and efficiently. This is just a little example of the difference between working harder and working smarter.
and I think that you would agree that generally, it’s best to work smarter and not just harder, we want to do both of these things of course, but if there is an easier more efficient way to get the same result then it makes sense to do that, so that we can save time and potentially get bigger results. there are many different aspects of our life that we can try to work smarter instead of harder but one of the most important aspects that we could apply this principle too is the aspect of our life that we spend the very most time on, I’m talking about earning a living.
most of us spend most of our waking hours working to earn money, so if there’s a way that we could spend less time working and make more money then I think you’d agree that that would be an important thing to learn about. what’s your first reaction when you hear me say that? do you think that’s impossible? like there’s no way to actually work less and make more money? even if that’s your first thought, I know that you know that’s not true. for example, you could go to school and get a degree that would allow you to get a higher paying job, and then you could make more money working the same hours that you do if you work a minimum-wage job.
that’s just one little example of a way that you could work smarter instead of harder to make more money in less time. well in this Article I’m going to be teaching you about passive income, you’re going to learn exactly what it is, how it works and how you could get started earning passive income for yourself since you spend most of your waking hours working to earn a living? I promise that this post is going to be well worth your time if I can teach you something about how to save time and get the same results or even better results.
What is passive income
alright so let’s start off by just talking about what passive income even is, well according to Wikipedia “passive income is income molting from cash flow received on a regular basis requiring minimal to no effort by the recipient to maintain it” now one of the keywords in this definition is that word “maintain”, it does take effort to make passive income, this isn’t income that we can produce with absolutely no work at all, we know that it’s not possible to make something out of nothing. so we do have to do some work but once we do the work to create passive income we have to do minimal to no work to maintain it and we continue to get paid for the work that we did in the past.
one type of passive income that you might be very familiar with is when someone writes a book and the book gets published and then they continue to get royalty payments from that book month after month as more copies of the book are sold. but they don’t have to do any initial work after the book has been written and published. now, this is just one example of the many different ways that there are to earn passive income.
Difference between passive income and active income
so now let’s talk about the difference between passive income and active income, active income otherwise known as earned income is how most people make their living, they work at a job and they get paid per hour or perhaps per project that they complete, but they just get paid one time for that work that they do so they always have to keep working and keep working to continue to make money and to support themselves, on the other hand when you earn passive income you do a project such as writing a book that allows you to continue to make money on into the future so you don’t get paid immediately unless your publisher specifically agreed to pay you a lump sum when you finished writing the book.
chances are that you’re not going to make very much money right when you write the book but then as the month’s progress, you’ll make more and more money from the payments that come in as copies of your book are sold. so that’s just a little example of the difference between active or earned income and passive income, and I think that you can probably already start to see the big difference that can happen in these two situations and how there’s a potential to make much more money with the passive income because you continue to receive those payments time after time again.
How it works
so as we’re thinking about working smarter instead of just working harder, what I want you to understand is that earning passive income definitely does take effort, it’s not necessarily easy and it’s not a way to get money without doing any work, you still have to work hard and be diligent and be committed but the difference is in the results that you get instead of just getting paid once for the work that you do, you get paid over and over again. another interesting thing about passive income is it allows you to create a snowball effect with your income, I’m sure that you know about the snowball effect?
basically when you make a snowball, when you’re playing with the snow you make a snowball and you start to roll it, at first it just gets a little bigger and a little bigger but the bigger it gets the faster it gets bigger because it has so much more surface area to be collecting more snow, so when you’re making that snowball it starts out really small and it seems like you aren’t getting anywhere fast but the bigger the snowball gets the faster it grows. now the same thing happens when you’re earning money.
How to get started earning passive income
If you’re working a job and you’re getting paid each month for the work that you did that month then we fall into this trap of living paycheck to paycheck we’re earning just enough to support ourselves and we feel like we can never get ahead but on the other hand when we make passive income here’s what happens; we do a project and it starts paying us and we get a payment every single month from that project that we did. For example writing a book and by the way, I’m going to get into several more examples later on in this blog post. so we’re getting those payments from the book that we wrote and then we are able to do another project and to add some more income onto that income that we’re already earning.
so each time we do a new project our income grows and because of that we create more flexibility for ourselves and we aren’t tied down to our job in the same way we can choose to work when we want to work so that we can increase our income even more but we can also take time off if we want to and then because our income is growing month after month we have a lot more flexibility with money also so we can set aside some of that additional revenue that we’ve earned to save for retirement or to save and then invest in new bigger projects that can earn even more income.
there are two different ways that it can happen on the one hand we could invest in a project that maybe is a little bit expensive, so writing a book might be free but if you want to start a business and grow your business that might take some money and you never get that opportunity if you haven’t created the passive income so that you have that extra money to invest into it. then the other way that we can invest this money is because we have the extra money we could actually take some time off from work and do a bigger project.
So maybe we write a book that we wouldn’t have had the time to write in the past because it involves more research or it’s longer but now we can because we have created the stream of revenue for ourselves. okay! so at this point, I expect that this idea is starting to make sense to you, instead of just getting paid for each hour that you work or each project that you finish you’re doing these projects that create income on into the future.
Passive income ideas
To give you a little bit more clarity, I want to share with you several different examples of ways that you could earn passive income
Write a book
so, first of all, we’ve got that example that I’ve mentioned a few times now, writing a book and then getting paid for each copy that’s sold in the future. see how to write a book and how to publish a book step by step
Create and sell an online course
another way to earn passive income is to create and sell an online course, once you do the work of building the course of filming the videos and creating the worksheets then you can sell it over and over again in fact with an online course because it’s something digital you can sell an infinite number of copies of it with no additional expense to you even.
Buying investment in real estate
another way you can earn passive income is by buying investment real estate and then getting rental payments from it or earning money from the appreciation in the real estate value.
you can also sell products on Amazon, now first this might not seem that passive because you think oh but I have to keep shipping the products over and over again but there are some options such as fulfillment by Amazon is otherwise known as Amazon FBA, which allow you to just ship a whole bunch of product to Amazon and then Amazon actually deals with making each individual sale, delivering the product to the customer which makes it essentially passive income.
Build a service-based business
you also could build a service-based business like an advertising agency or a design agency or you have employees who are actually doing the work for the customers, you own the business and after you do the initial work of setting up the business, hiring the people, getting the first clients, getting your marketing systems in place and hiring a manager for the company. you can be earning passive income from your business.
YouTube channel or a blog
finally you can earn passive income with a YouTube channel or with a blog, with a YouTube channel you make money when people click on the ads on your videos so the more videos you make the more money you’re making each month because people are still watching all of your old videos and clicking on the ads on those videos and then earning passive income from a blog works very similarly because you’ve built up a library of content on your blog from all the old blog articles that you’ve written people will come read those articles and they could click on your affiliate links in the blog or they could click on ads that you have on your site.
so there are six or seven different ways that you can earn passive income and I think that now that you have these examples you’ll understand much more of what I’m talking about when I mean passive income. also how passive income works now, if you want to get started earning passive income for yourself, what I want to share with you is the two biggest things that are likely to get in your way and the two main reasons why most people never even start earning passive income. the first one is deciding which way to earn passive income, the fact is that there are a lot of opportunities out there for different ways you can earn passive income, you could start a YouTube channel on any number of topics. you could write a book on any topic, you could start a blog, you could buy an investment property and obviously, there are tons of properties out there.
so there are all these options and there are so many options that it can be hard to decide which one to actually start, now there isn’t one of these options that’s necessarily the best and there’s plenty of good options. so if you want to successfully get started and actually start making money for yourself in this way then you just have to do this difficult task of actually deciding. don’t worry about making the perfect decision just choose one of these options that sounds interesting to you or sound like you would enjoy it and then start learning about that.now you might change your mind and decide to go after something else but you have to at some point make a decision if you want to be able to move forward, so it seems like a deciding wouldn’t be that hard of work, but if it’s not that hard then just do it and I know that it’s like not that easy but you just have to bite the bullet and do it because otherwise, you can never get to the next step.
now after deciding the second thing that holds people up makes them never earning passive income is actually committing to finishing their project as. I shared with you earlier how passive income is made, you do a project and then you get paid for it over and over again. now imagine if you decided you wanted to earn passive income by writing a book that’s a great leader in passive income, but you’re never going to make any passive income from it if you don’t finish the book, right?
so in order to get started making the passive income, you have to first choose a project so decide what you’re going to do and then you have to finish the project. you have to finish writing the book, you have to create your entire course, you have to buy that property, whatever that project is you have to finish it or else you will not make a single penny. this is fact so many people never even get started trying to make passive income, because they know they will not make any money from it unless they get to that finish line with the project, and that is a little bit scary especially if you don’t really trust yourself to commit to a project and finish it? then you might feel this’s going to waste your time.
So if you want to successfully make passive income then you first need to decide which option you want to use and the second you have to commit and actually finish that project. now once you do finish the project you’ll start making money, at that point a whole bunch of great things happens. first of all because you start making that money you start to get that snowball effect, at first you don’t make very much but because you have little bit of extra income every month, you’ get a little bit more of flexibility and you have the money that you could save or invest into new projects.
beyond that, you also start to feel motivated because you’ll see that you had one small success and so you work faster and better and harder on the future projects, you will get them done sooner so get more and more passive income. you’ll also of course gain experience and learn more works, this allows you make a better decision in the future, create more passive income for yourself because you are doing it in an even more intelligent way and also minimize your failures. the more passive income you create the more flexibility you have of your time and of your money and the more possibilities you are able to create for your future.
alright, that is all about passive income that am going to share with you, if this topic is of interest to you and you want to learn more about it in the future, please leave me a comment below and share with me exactly where you are in the process, if you still trying to figure out what you want to pursue, or if you are not sure of how to get started with the things you have chosen. maybe I could make more post about that specific topic in the future.