🌳 The Secret To Passive Income

QUOTE OF THE DAY

THE SECRET TO PASSIVE INCOME

478 Words | 1 Min 44 Sec Read

Passive income is a topic that consistently floats around on the money side of social media. It’s the idea that you can make money and generate income while not actually doing anything... That’s right, you can make money in your sleep.

There are loads of different opinions and viewpoints over the legitimacy of passive income, if it exists, if it’s easy, and if it’s obtainable, and the short answer is yes/no.

You see, passive income is defined as ‘a type of unearned income that is acquired with minimal labour to earn or maintain.’

If that’s the case, then it’s most definitely attainable. It doesn’t mean you have to make money without lifting a finger; it’s just putting the right systems in place that allow the minimum work that you put in to have a tenfold result.

Minimal labour = Income

True passive income is typically achieved due to a huge amount of frontloaded effort and then maintaining the result of that effort. For example, if you were to spend 6 months building software that solved a problem and for the next 5 years sold that software, the income would technically be passive as the work you put in doesn’t correlate with the result you are getting out, and that’s what true passive income is.

A disconnect between the time and effort you put in and the result you get out.

So how can you make passive income?

You can’t. Not yet anyway; first, you should be focusing on leveraged income because that is the first step towards true passive income. This is the idea of using something that already exists to further your own cause, and if you’re lost with the term of leverage, you can check out a previous Issue we made HERE.

Breaking it down, however, there are two main types of leverage that you can take advantage of as someone just getting started that will allow you to disconnect your time, effort, and money.

SYSTEMS

Systems is the first one; this is the Idea of having things in place that go together seamlessly. For example, if you were running a productized business, systems would be the difference between someone buying your product and you having to take care of everything from packing to shipping to the behind-the-scenes and having it all automated for you.

If it's automated, it means someone can buy something from you, and you can make money without having to lift a finger. That seems pretty passive, right?

PEOPLE

Secondly, there are people or a team, which is arguably more important as it is infinitely scalable. This is the idea of having an employee or freelancer that you pay x amount an hour that produces results that to you are worth 5x what you pay them. This then makes the difference between what you pay them and what you receive pretty passive.

ACTIONABLE NEXT STEPS:

Look for leverage in everything you do, and if you can’t find it, you may just be doing the wrong thing because it will lead you down a very tedious and labour-intensive journey.

TAKEAWAYS:

Passive income is just money that’s disconnected from your time and effort, and to achieve that, you need leverage to do so.

BOOK OF THE WEEK ⤵️

The book of the week is ‘How to stop worrying and start living’ by Dale Carnegie, the author of ‘How to win friends and influence people’. Carnegie details the many ways worrying too much can ruin your life and how to solve it. The book contains tips and tricks on conquering worries that are worthwhile. Read It HERE

CREATOR OF THE WEEK ⤵️

The creator of the week is @DanKoe, a pioneer in the self-improvement space across all social platforms. He makes content focused on optimising your life in every way possible. From making more money to finding your purpose, he’s not one to miss out!

LESSON OF THE DAY ⤵️

When you’re 85 years old and on your deathbed, you’re not gonna wish you had fewer crazy stories.