Creating a passive income online is something that you probably have heard of. Many business opportunities use the idea of “creating a passive income online” to sell you their systems. It works because I’m using this trick too. But does passive income really exists?
In this article, my goal is to share with you some essential truth about creating a passive income online. I know most of you are more keen to learn how to create a passive income online. I’ll talk about it in future. But before I do that, it is important for me to cover some grounds and get your mindset right.
Passive Income Doesn’t Exist!
First of all, I need to get this straight – passive income doesn’t exists, at least not according to what most newbies define as passive income.
Most people define passive income as “making money without having to do anything”. If you are one of them, you will be very disappointed when you realize that this is not true.
Do you realize that whenever you get into an opportunity that ‘claims’ to give you a passive income, you end up being overwhelmed with lots of sh*t and often have to work like a dog? That’s when most people give up.
Truth is, there is no such thing as making money without having to do anything. If such opportunity exists, it’s most likely a scam (unless you’re talking about putting your money in the fixed deposit).
So what is a passive income then?
Here is my definition of a passive income – “A passive income is an income system that does not trade time for money.”
If you go with my definition, you are less likely to be disappointed and more likely to succeed because you’re prepared to work hard to create such a system.
Once you get the definition right, all you have to do is spend most of your time creating different streams of passive income and spend less time making money.
“Huh, what are you talking about, Kenneth?”
If you understand what I am talking about, good for you. If you don’t, let me explain.
Most people spend time to make money. One obvious example is working for a monthly salary. Some other less obvious examples include the following activities:
– Staring at the computer screen to trade the stock market or forex.
– Selling products in Ebay (unless you have plans to turn it into a system).
– Posting ads to sell Clickbank products (unless you have plans to turn it into a system).
– Providing freelance services such as graphic design, article writing etc (I hope my freelancers are not reading this!)
If you are pressured for money, yes, go find a job and do some part-time freelance jobs. But if you want to be rich, spend most of your time creating different streams of passive income.
You need to understand that making money and creating a passive income are two different things.
Creating a passive income may not make you money, although the ultimate goal is to make lots of money passively. When creating a passive income, you are creating a system that does not trade time for money and in the process of creating this system, you may spend more than you earn.
Many people can’t get pass the idea of losing money before making money. That’s why most people fail to create their first passive income online. On the contrary, those who are ‘lucky’ enough to create their first stream of passive income online will continue to create the second stream and third stream because they’re used to the idea of losing some money before getting it all back, multiplied. Another reason is because with their first passive income established, their risk appetite is higher and they are more willing to lose. The last reason is because they are more experienced now.
If you’ve just started out, go find a job to make money. But don’t spent too much time on it. Take 3-5% of your monthly income and most of your spare time to create a passive income online. Online opportunities cost much lesser than offline opportunities and 3-5% should be enough for you to learn the ropes. How soon you’ll see your first passive income established depends on how fast you learn and how hard you work.
Get your definition of passive income right and spend most of your time creating a passive income online. Once you’ve created your first passive income, go on to create the second, the third and more streams of passive income. This is possible since you don’t trade time for money with these systems. This is the sure way to make a fortune rather than just making a living.