by Everyone wants to become rich more than they’d like to admit it. Not that there’s anything wrong with it, it is intrinsically ingrained in humans to accumulate resources for our survival.
Everyone DREAMS of becoming rich. But only a few knows really how to reach that seemingly unattainable goal.
Of course, if you ask anyone they’d tell you that HARD WORK is a major part of the equation. Is that all there is to it though?
Since we’re young, we’ve been taught to go to school, get good grades, graduate, get a decent job and a nice salary for us to depend on for the rest of our lives. We’re not taught HOW to actually be monetarily rich. We’re not taught financial literacy. Because we’re only taught how to be an obedient employee. Then we later find ourselves wondering how others get ahead of the game when we’re practically doing everything right in our checklist.
Then we feel burnt-out, unable to figure out how to get out of the system. Then comes the feeling of being stuck in the loop of living from pay check to pay check, in great disbelief with how fast money comes and goes just paying the monthly bills. It’s just never-ending isn’t it? Up to the point where we get desensitized and stagnant.
Stagnancy is your own enemy.
If you’re stagnant that just means that you’ve come to accept the fact that you’ll never reach that dream of becoming rich. It doesn’t have to be that way forever! Most people, much more than they realise, have the ability to get out of the system but choose to become stagnant because, well, life has become so comfortable.
People choose to become stagnant because they think that they’d have to RISK what’s left of their money or savings, or they’d have to leave their 9-5 job to pursue that grand start-up company they’ve been planning to build for decades now. These are all misconceptions.
What if I tell you that there’s a way to becoming rich without having to sacrifice everything?
The key to becoming rich is through PASSIVE INCOME.
What is Passive Income?
Passive income is making money while you sleep. Passive income runs on its own. You don’t have to work the machinery all day, but you just have to add fuel to the system to make it work seamlessly and automatically.
Make no mistake. Passive income is NO FREE MONEY. Passive income is not overnight easy money. Most people, in their pursuit of passive income go through a lot of periods of challenges, uncertainty, and little to no returns initially. Passive income requires patience, as it’s an integral part of the wealth-building process.
Whoever told you that building passive income is easy is 100% lying. There is no shortcut to creating wealth. It takes time and dedication. Not only do you have to attend to your 9-5 job in the mornings, but you’ll also have to maintain your passive income at night.
If it requires patience and hard work, isn’t all these contradictory to the concept of making money while you sleep?
No. Passive income doesn’t have to rely on YOU. In comparison to your 9-5 day job, if you don’t show up at work, you don’t get paid. With passive income, even if you are sick or in the Bahamas for a vacation, if everything is set-up the way it’s supposed to run, you’ll earn money even if you’re away from it.
Making money while you’re asleep or away is PASSIVE INCOME. Your 9-5 day job is ACTIVE INCOME.
The major difference is your involvement. With active income, it requires 100% of your presence and involvement. With passive income, it can run even with little involvement.
Most people don’t realise that one major constraint that is deterring them from expanding their wealth is THEMSELVES. There’s only 24 hours in a day, and you can’t split yourself into attending two jobs at the same time. Stop spreading yourself thin and become strategic.
The solution to this is through PASSIVE INCOME AND having MULTIPLE SOURCES OF INCOME.
Multiple Sources of Income
Do you know the main difference between average people and rich people?
Contrary to what a lot of people might think, rich people aren’t necessarily more industrious or more hardworking than the rest of us. Nor they are more educated than most. They do things SMARTER than HARDER.
Work SMART not HARD.
Work SMART, not HARD sounds like a cliche. But trust me, rich people abide by that rule. 80% of results comes from 20% of the effort, as per Pareto Principle. Working smart means that you are strategic in your wealth-building process. Working smart is allocating resources in the right systems so that you’ll maximise your returns and income. This is called EFFICIENCY.
If you work smart, you’ll know that relying on just ONE source of income isn’t enough; you’ll find a way to maximise your capital and time into building other forms on income.
Average people only have 1 source of income. Rich people have 7-8 sources of income.
Most people rely on 1 source of income and that is their day job. And we established that a day job is an ACTIVE INCOME.
What we want is a MULTIPLE STREAM OF INCOME combining both ACTIVE INCOME AND PASSIVE income.
Here are some examples:
Active Income:
- 9-5 day job
Passive Income:
- Dividends from stocks and investments
- Capital gains after selling stocks and investments
- Interest from banks, bonds, or loans to other people
- Business (can be classified as active income in its initial stages)
- Royalties/ franchise
- Advertising revenue from blogging or from youtube
- Inheritance
- Real estate/ property rental income
The key is to becoming building wealth is to COMBINE both active and passive incomes and to DIVERSIFY to be able to mitigate risks.
EARN. SAVE. INVEST. REPEAT THIS LOOP.
With multiple streams of income, you’ll learn the habit of earning, saving, investing and accumulating ASSETS that actually grow in value over time.
