Thursday, June 08, 2006
So you Want to Be Rich (Part Three)
We’ve been looking at different incomes and hopefully you’re seeing that leveraged passive income will make you much richer than trading time for money.
So why don’t more people do this?
Partially, it’s because they don’t know. But society plays a big part too. Consider that most people spend way too many hours watching TV. On a TV show the crime is solved in a ½ hour. Someone instantly wins a million dollars. A home gets remodeled in 30 minutes. TV is teaching us to expect things to happen almost instantly. People expect life to work that way too.
Here’s the problem with leveraged passive income:
You will put a lot of work into earning passive income before you make any money. In the beginning, you do a lot of work for free without any proof that it will earn you any money down the road.
There it is. It’s just that simple. You see, at a job, you work 40 hours (or more) your first week. You wait about a week or two, and then you get paid. A passive income project could take years before you see your first dime. People just get impatient. How long would you show up to work if you didn’t get a paycheck? For most people I’d bet they wouldn’t work longer than a month for a company if they didn’t get paid right away.
If you were to graph most passive income projects they look like this:
In the beginning you don’t make hardly any money. But years down the road (read that again, I did say years), your passive income can exceed what you make at your job. Now you have time and money. By most standards you’re rich!
You now have free time to make more money if you want, or you can slow down and enjoy life a little more.
Hopefully I’ve sold you on the idea of working for a worthwhile passive income project and not simply working for money. In the next article we’ll look at few ways you can start generating this precious income. Some of them take more money than others, but I assure you that even with no money you can build a substantial passive income stream if you simply stick to it.
Go Back and Read Part Two or continue reading Part Four
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