This topic has been talked for about gazillion times on the internet and it seems not all people are able to grasp the concepts fully, the work involve, the emotion involve, the right mindset, and other things surrounding this topic. If you want to learn more about this Active and Passive income thing, I encourage you to read more.
Actually, there’s a third category called Portfolio Income but I’m not going to discuss it here. If you’re still not aware of the definition what passive and active income means, here’s a quick overview:
Active Income – This is the type of income where most people are getting their livelihood. Active income is simply the income you get after performing a service.
The money you will get here are in forms of wages, tips, commissions, and income from business transactions where there is material participation. In this category of income, you are exchanging your time and effort for the money.
Passive Income – On the other hand, passive income is an income received on a regular basis which requires zero to little effort of maintaining it.
The money generated in this type of income can come from automated systems, rentals, pensions, royalties, digital products and many more. Basically, this income is your ideal type of income where the money is kicking in while you’re spending time with your loved ones.
So which is better?
Based on the definitions above, it’s clear that having streams of passive income is way much better. Who wouldn’t want that? A life where you’ll be able to do all your other activities not thinking much about where to get the money for the next day. Imagine earning money while sleeping, it’s everybody’s dream!
It’s not as easy as it sounds. You should always put this into your mind that if you want a more ideal situation for your life, the more you need to work harder. If you really want to succeed in life, you need to pay the price fully and in advance.
There’s a lot of things you need to consider, a lot of things to do, and a lot of things to adjust before you can actually get the lifestyle that you’ve always wanted.
1. The work involved – Building your streams of passive income requires not just a lot of work but a lot of learning as well. Remember this. Only less than 10% of people who attempted to build their businesses are actually having significant results. Again, because not all people are willing to exert extra effort.
This is not a game for lazy people. If you are, you can always click the close button in this tab and read some other things on the internet. You can always go back to your 8- or 7-4 day job.
2. The emotion involved – This industry requires emotional stability. There’s a lot of hype going on in many similar business opportunity. If you’re not emotionally stable, you might easily get distracted by shiny objects.
Building your passive stream of income requires a lot of self motivation. Make sure that you have answered the questions “Why am I doing this?”, “Who am I doing it for?”, “Do I really need this?”, “Can I live doing this for the rest of my life?” and etc. The answers to these questions will serve as your source of energy, your source of motivation for you to keep on moving.
Another thing is that you should always ready yourself for failure. Always remember to do “2 steps forward and one step back” every time. Every time. Always work hard but exercise your feelings for the worst case scenario as if you already knew that you’re going to fail, no surprises.
3. Right mindset – The right mindset should always be “For you to succeed, you’ve got to face a lot of failures”. As long as you’re not succeeding, you’re not failing enough.
Focus, don’t do things simultaneously. Multitasking can do more damage than good.
Think of this..
Say you’re working out three blogs at the same time and another guy is working out his only one blog. Let’s say a blog needs around 6 months to become profitable. Guess what? The other guy only needs 6 months to build his one blog. Focused and nothing else to worry about.
How about you? If you think you will be having 3 profitable blogs in 6 months, well my friend, NO. If a blog requires 6 months, you need 1 and a half year to create 3 profitable blogs. This is true specially if you’re a newbie in the industry. But as long as you don’t have the right skill set yet, you cannot efficiently do what experienced bloggers are doing.
This applies not just in blogging but in other businesses as well. By the way, if you’re a busy person and wanting to start a blogging career, you can check this helpful article for more tips.
That’s it! I know I did not write anything new here but what I did is strengthen what others are saying about building passive income. It takes time, it takes patience, it takes nothingness (sometimes), it takes sacrifices, and etc. but if done properly, everything is all worth the effort. If you fail, learn from that failure then start again. You need to accept that fact and plant it in your body.
By the way, i’d like to share with you another milestone in my blogging career. I’ll just show this here and let the figures do the talking for me. I got other blogs that I’m maintaining and I just hit these figures this week. I’m doing this on-the-side for about 1-2 hours a day but I’m about to do this full time next month.
I’m happy but I’m not satisfied yet. There are a lot of variables that are fluctuating in this business. Everything can go boom then later doom, if you know what I mean. 🙂