Now it’s time to talk about how most people earn a living. Most of us exchange our time for money. We work an hour and get paid for an hour’s work. The government takes its cut, we take the rest, and we spend it. Then we have to go work another hour to replace what we just spent. This is what we can say is the part of the Nature of Income.
I’m not knocking this, because is how it is, how most of us need to start out. This is normally called a job (J.O.B) and for some people it stands for “just over broke.” As cute as that sounds, it’s actually more true than it sounds. The philosophy that I’m talking about towards becoming an epic millionaire in my book is to move away from time equaling money as soon as possible.
One hour of time normally equals one hour of pay or one unit of pay. The goal is to move first to the next level where our one hour of time spent, yields multiple units of pay. Eventually we will get to the level where no time spent will get you multiple units of pay (passive income).
ACTIVE INCOME VS. PASSIVE INCOME
Exchanging time for money is active income. You work; you get paid. That’s what most people think life is about. You work and get paid. Then get up and do it all over again until you die. How depressing.
No. What we want is to create active income for a while. That’s cool. But then to get to the point where you work once and get paid, paid, paid, paid…..without having to work for that stream of income again. This is called passive income because rather than being an active participant in creating income, you can just sit back and be passive and the income will come in.
Let’s not be jaded. You still have to work. But you do it with the intention that you will eventually make income from that work without the actual work continuing.
A couple of weeks ago, I was driving up to one of my properties to do some work. (I own a medium-sized industrial property in a little town in Florida.)
But it seems almost impossible to find people who want to do work around the property— you know, things like pressure washing, painting, and other odds and ends…
Now if you know me, you know I have a love-hate relationship with real estate.
I love how cool it is that you can buy something physical and make it better. But I hate all the work that comes with it, especially when it’s hard to find good people for handy work.
Recently, I had a tenant move out of the property and couldn’t find reliable help to clean it. So, I guess it was up to me.
I own this property, so it’s supposed to be passive income – you now, income that comes in automatically without much work.
All my life I’ve heard how you should strive for passive income, and I firmly believe that is the key to financial freedom.
And all my life I’ve heard that financial freedom comes from owning real estate. But does it?
I saw some proof of that from my dad who owned real estate all his life. It seemed to work OK for him. (I seem to remember pulling a lot of weeds on his properties as a kid, but that’s a different story…)
Anyway, the real question is: “Is real-estate passive income or active income?”
As I held the pressure cleaner in my hands and sprayed down the sides of the walls, it sure felt like active income to me.
No matter how passive real estate is supposed to be, there are always toilets to be fixed, people to pay, late rent to collect, evictions, and lately, people complaining about not having enough parking.
This is TOTALLY different from how I live my day-to-day life.
I create passive income in the stock market, and it’s so much easier.
I click a mouse and can invest $250,000 instantly. That investment generates passive income for as long as it moves in my favor, otherwise it’s just a few more clicks.
SMART INVESTOR SYSTEM
I invest in the stock market using a system, so I can create safe and reliable income just like real estate.
After I use my system to squeeze the income from a particular stock, I can just click the mouse again and sell it.
No real estate agents.
And the amount of passive income that I make using my Smart Investor System blows away anything I’ve ever made or known anyone to make in real estate. Sure, real estate has some benefits when it comes to taxes and depreciation. But when you’re making way more income (without the hassle), real estate investing just doesn’t compare to this system.
Today the property is clean, and the real estate agent is showing it to potential tenants. But until I get a tenant, there’s no income from that unit.
Keep your fingers crossed. (Passive income – I think not…)
In the meantime, I’ll just sit here, click the mouse, and make my passive income from the stock market.
You can make passive income from my system too. Just click that link to learn more.
PASSIVE INCOME OPTIONS
Here are other examples of how wealthy people use passive income to become financially free:
The list is really endless but most people just think that the only way that they can make money is from working in a job. My entire course is geared towards creating passive income so that you don’t have to work for your money anymore. Look forward to see you on the inside!