As we run around looking for alternative sources of incomes, I can’t help but wonder what type of income a person could be looking for, that would achieve the desired goal. There are two different types of income, active income, for example, an individual getting a second job, or passive income, where a person can rely on income from other sources, for example, investment income, rent, business income etc. The advantage of passive income over an active income, is that you can still earn lots of money with very minimal work on your side, and this could be advantageous as you will be able to concentrate on other areas that probably require a lot of your attention. So, as you sit down and wonder how you are going to survive this difficult economic times, think of a type of passive income that will bring in the desired level of income with the least minimal effort. The following article on passive income from ‘Living Financial Free’ website, shows the advantages of passive income, and how it can help in achieving financial freedom.
The last “corporate world” job I had been a salaried position. That, of course, meant that if I worked 40 hours or 70 hours, the same money was on my paycheck each and every time. Probably much like you, I would read books or listen to seminars that talked about how to double your income over night. Of course nobody is going to double their income over night, but I didn’t even know how I was supposed to add 10% more to my income, until the next possible pay raise. I figured that the people who were saying this had to be in sales or some other type of position that allowed them to get a commission. I was really bummed out by this. I felt like I had worked my butt off to get into this position only to limit my earning potential.
I know a lot of people feel the same way, because that is one of the most popular questions I get. So, can you double your income over night if you are a salaried employee or even an hourly employee with limited overtime? Well sorry, but the answer is, no you can’t. Keep reading though because the reality of doubling your income over night will only happen when you are discovered by Steven Spielberg while eating at a Denny’s. However, you can slowly increase your income month by month until you are soon working because you choose to, and not because you have to.
Way too many people get caught up in the idea that you need one source of income. If you take a look at any successful person, you will notice that they have multiple sources of income. Now I’m not talking about going out and getting a part-time job delivering pizza. I’m talking about passive sources of income. Once you get passive income (which simply means income without a large amount of concentrated work) you will start to realize the ability of Livin’ Free Financially. Livin’ Free Financially is the ability to live the lifestyle you desire without having to work or rely on anyone else for money. If you know anything about my story, you will know that I got laid off when the company I was working for folded. Had I known about passive income at the time, getting laid off wouldn’t have been as big deal because I would have been Livin’ Free Financially. That is the way to win the money game. Get to the point where you are earning enough passive income to pay for the lifestyle you desire.
So what is passive income exactly? There are really two types of passive income. One is investment income. That’s money that you have invested and it is now working for you. The other type of passive income is passive business income. Some examples of passive income other than investment income are as follows. Rental property that has positive cash flow is a perfect example of passive income. I have a CD program that I am taking pre-orders for. While it took me a lot of time to get the CD information together, now I wake up and have money waiting for me because people have purchased the CD. That is passive income. You have to find what you desire, what you love or what you are interested in and find ways to make passive income around it.
Now, if you are anything like I used to be, you are probably thinking “oh brother, here comes a scam”. (We’ll deal with the dangers of that type of thinking in a later article.) First of all, there are probably some opportunities out there for passive income that aren’t necessarily for you and that’s fine. I can also tell you this. The key here is multiple sources of passive income. Unless you have the money to go out and buy with cash a couple of car wash locations, you aren’t going to find just one that puts you into a position of Livin’ Free Financially. You’ll want to find a couple. Now I know that this is new thinking, but again you have to ask yourself, “Is what I’m doing now putting me in the lifestyle I want and into a position financially where I work because I want to and not because I have to?” If the answer is no, then isn’t it time to change that? Remember, the first thing you have to change if you want different results is your beliefs and your actions. Are you ready?