A motivational thought regarding earning passive income

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Although I have only experienced small trickles of monthly income through IM, I have been making a living primarily through passive income for the last year and a half. I make $1500 per month from renting out my 3 spare bedrooms in my house. My active income is made through playing live music with my band and eBay sales. I guess you could say that I'm an "entrepreneur".

Anyway, I would like to point out something to everyone on here that still has doubts about whether or not they are capable of earning passive income through IM (or any passive income for that matter). If you are an avid reader of blogs and forums relating to IM, it may appear that you have lots of competition, and therefore it is a major challenge to try and figure out a way to separate yourself from the herd.

However, you actually don't have much competition at all. Why?

Because most people do not pursue passive income, nor do they even believe that such a thing is even possible!

Almost everyone has a purely "active income" mindset where they believe that the only way to make money is by directly trading their time. Most people believe that their time is best spent if they are working for an hourly figure or a salary. They feel that doing anything else that does not have an hourly figure or direct amount of monetary gain attached to it is nothing more then "leisure time".

Ever since I quit my engineering job in May 2012, people like to poke fun at me about the fact that "I don't do anything all day". However, I still do have a full-time job...I'm working towards creating passive income systems. I often work for 10 hours straight, and I often stay up until 3 am in the morning in order to hit certain project completion goals. Of course I get to wake up whenever I want, and I'm free to take time off whenever I want as well. However, I'm usually very driven to work as often as possible.

People laugh at what I do and say "when are you going to get a real job?"

The people that say that to me are not happy with what they do for a living, but they do it because it yields a direct monetary gain. They feel that what I do is a waste of time because I make no immediate money for my work.

Some people almost get it, but not fully. They believe that the reason that I spend my time writing eBooks, blog posts, etc. is so I can eventually get hired as a writer. They think that I'm essentially working towards eventually getting some sort of active income opportunity. Obviously that is far from the truth.

For all the rest, they just think I'm completely wasting my time. If I was getting $20/hr to write, then they would consider what I do as time well spent. When I occasionally do side work for my buddy who owns a construction company, people praise me by saying things such as "Ya making money!". If people know that I am doing active income tasks, they respect my time much more. On the other hand, if I tell someone that I'm busy working, and that "work" is doing something that's working towards earning passive income, then they assume that I'm free to do whatever they feel I should be doing. "You have the whole day free. You can do this for me." That is the attitude that people towards me when they may need a favor or want me to be somewhere.

Then you have the generation of people pre-internet. I'm referring to those who were born prior to about 1975. Those people are fully aware of the internet, but most of them only view it as a tool to learn and share information. They do not view it as an opportunity to earn a living. They do not understand the concept I of "digital currency" where you can get paid via clicks of a mouse. They are stuck in the mindset of getting paid through cash and/or checks by providing direct services in the real world (not the virtual online world). This generation is aware that it is possible to be an entrepreneur, but they think that can only be done by opening a real-life store or company, or through investments. This pre 1975 generation views the concept of "earning money online" as some silly scam.

Just look around you and see how many people fit these descriptions. See how many people are deadest on earning income by directly trading their time. Watch how most people don't even seem to understand the concept of passive income. Consider how many people you encounter on a daily basis that would consider spending 3 months on a project with no direct or guaranteed monetary return to be completely silly. Most likely almost everyone that you encounter in the "real world" fits these descriptions.

That's your REAL competition, not the small subset of passive-income minded people.

If everyone else is DEAD SET on trading their time for their money, that means that they are not spending their time doing the things that we are doing. Therefore, we do not have very much competition in life.

"If you do what no one else is willing to do, you will have what no one else has".

If you're willing to spend your "9 to 5" hours working towards creating your own passive income systems, then you will likely find yourself earning passive income one day in the near future. If you're willing to do the tedious work UPFRONT with no immediate payout, then you will often be paid passively after the system is in place.

Everyone else is doing their full-time work attempting to earn money in direct exchange for their time. That's great! That means much less competition for us!


What motivated me to write this post was due to something that a few of my construction worker buddies said to me yesterday. We were talking about going on a snowboarding trip in the near future for three days on a Sunday to Tuesday. I was all about it! They then proceeded to say "Are you sure you can make it? You don't have to clear your schedule?" The implication was that I have all the free time in the world, and what I do for work is somehow less important then what they do.

My reply was, "Nah I work whenever I want. It's awesome!" My implication was to poke at them letting them know how awesome my life of freedom is.

They then said "well I don't know what you consider to be work, but..." Implying that what I do isn't actually "work".

I began to get a bit annoyed because I never talk about what I do for a living, yet people always attempt to try and make me feel like I'm somehow living my life wrong...

Anyway, I then said "Once I'm making $3000 per month without having to actually do anything, you won't be laughing."

Of course this resulted in more laughs and eye rolls. I just smiled as well because my doubters just make me want to succeed that much more. If not for the complete and utter freedom of earning a living through passive income, at the very least I get to say "I told you so."

Our competition is scarce.
#earning #income #motivational #passive #thought
  • Profile picture of the author Rod Cortez
    People laugh at what I do and say "when are you going to get a real job?"
    I used to get mad when people would say that to me many years ago, especially family members. But then I got to understand people. The vast majority of people are raised to think about a college education or learn a trade or take over the "family business"; or, get a good job, raise a family, etc. They are taught to think like employees, not entrepreneurs.

    Most of them simply don't understand the notion of passive income unless they are part of that world, whether it be from investments like stocks, bonds or real estate or setting up a business to run completely automated (which may include outsourcing).

    Sometimes people think you're doing something sleazy or breaking the law somehow because in their mind how can someone possible earn income and not have to "work" (work as defined by them).

    The notion of a "real job" is very real to them and anything outside that norm is alien to them. So I no longer judge them harshly for trying to put their perception of reality and projecting it onto me.

    Just be glad you're the one to have made it out of the Matrix.

    RoD
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  • Profile picture of the author Elvis Michael
    Originally Posted by Bkelly301 View Post

    They do not understand the concept I of "digital currency" where you can get paid via clicks of a mouse. They are stuck in the mindset of getting paid through cash and/or checks by providing direct services in the real world (not the virtual online world). This generation is aware that it is possible to be an entrepreneur, but they think that can only be done by opening a real-life store or company, or through investments. This pre 1975 generation views the concept of "earning money online" as some silly scam.
    Excellent post, both BKelly and Rod. Thanks for your thoughts, I think you're both right on the (passive income) money.

    These days I disclose the things I do only to a handful of friends. Thankfully those few people have been receptive and haven't shot me down. But i'm also sure it's only because I showed them personal results before I started even talking about it. I really don't think anyone would have respected my ideals as much if I had talked the talk before walking the walk. I don't make a lot of (passive income) money, but it's something that definitely helps pay some bills.

    I am also happy that you felt like blowing off some steam regarding passive income, BKelly, because I felt the need to to the same exact thing just a few days ago on my personal blog. I guess great minds think alike.

    The Passive Income Myth

    I used to work in a college dorm with a friend a few years back before I started working from home. To this day he still asks me questions like, "So are you still unemployed? Have you found a job?" It used to make my blood boil, but now I just let it slide and I smile.

    At the end of the day nobody needs to know what you do or how successful you are. That won't accomplish anything. Simply put: Everyone who doubts you can go f*** themselves.

    My current passive income accounts for over 50% of my total income, and it's a number I hope to keep raising slowly over time.
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  • Profile picture of the author DubDubDubDot
    Originally Posted by Bkelly301 View Post

    I then said "Once I'm making $3000 per month without having to actually do anything, you won't be laughing."
    $3,000/mo while doing no work is going to prove difficult. Passive income online does exist, but it requires maintenance. Plus you are highly unlikely to find one single source and will require multiple smaller sources for a combined $3,000. And because there are multiple sources that require occasional maintenance, you will be maintaining at least one of them at any given time. In other words, working for that $3,000.
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    • Profile picture of the author Elvis Michael
      Originally Posted by DubDubDubDot View Post

      $3,000/mo while doing no work is going to prove difficult. Passive income online does exist, but it requires maintenance. Plus you are highly unlikely to find one single source and will require multiple smaller sources for a combined $3,000. And because there are multiple sources that require occasional maintenance, you will be maintaining at least one of them at any given time. In other words, working for that $3,000.
      I think the problem is that everyone has different definitions of what passive income means. Some believe that for something to be considered passive, it would require absolutely no work on your end whatsoever.

      Others believe that you could either do no work, or very little work. In other words, low maintenance here and there.

      I'm part of the latter. It's almost impossible to create a permanent income stream where you wouldn't lift a finger until the day you die. It may be doable (who knows?) but extremely tricky.
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    • Profile picture of the author Bkelly301
      Originally Posted by DubDubDubDot View Post

      $3,000/mo while doing no work is going to prove difficult. Passive income online does exist, but it requires maintenance. Plus you are highly unlikely to find one single source and will require multiple smaller sources for a combined $3,000. And because there are multiple sources that require occasional maintenance, you will be maintaining at least one of them at any given time. In other words, working for that $3,000.
      My ultimate life goal has always been to be able to wake up whenever I want, work from my own home, and work for as long as I want. I've always wanted to be my own boss and have the choice to take off whenever I want. I do that now, and it's my dream job! I love what I do.

      I fully understand that there will be years of work ahead of me until I achieve a sustainable $3000/mo passive income. I'm not one that is looking for the winning lottery ticket or quick fix. However, I do realize that once I each the point (through multiple streams) that I'm earning $3000/mo passively, then most of my focus will just be on upkeep rather then the actual tedious upfront work.

      I'm looking at this as a very long term project.

      Thanks for all of the replies everyone!

      BTW Elvis, I got your pm. Thanks man! Sure shoot me a link to your blog and I'll check it out.
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  • Profile picture of the author Rod Cortez
    There is a distinction here that I think is important to point out. Some business owners are a slave to their business, putting in a bunch of hours when they'd rather be doing something else.

    Then there entrepreneurs who set up their business to be virtualy self-sustaining. For example, if you own 8 Subway franchises and 2 hair salons, and 2 car washes, you can hire people to manage them and have one regional or executive admin run them all for you. Granted, it's got to be someone you've vetted and trust, but ultimately it would involve little maintanence once the proper infrastructure and systems are put in place.

    Then there are entrepreneurs who like to roll up theirs sleeves and stay in the game. Sure, they might automate one or more enterprises, but they tend to be serial entrepreneurs and they like starting new projects. They choose to work because they want to, not because they have to.

    It all depends on your business model and how you set up your business infrastructure.

    RoD
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    "Your personal philosophy is the greatest determining factor in how your life works out."
    - Jim Rohn
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    • Profile picture of the author DubDubDubDot
      Originally Posted by Rod Cortez View Post

      For example, if you own 8 Subway franchises and 2 hair salons, and 2 car washes, you can hire people to manage them and have one regional or executive admin run them all for you.
      Hmm.... Would you guys say the owner of this forum is earning do-nothing passive income because he has mods?
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      • Profile picture of the author Rod Cortez
        Originally Posted by DubDubDubDot View Post

        Hmm.... Would you guys say the owner of this forum is earning do-nothing passive income because he has mods?
        I don't know all the behind-the-scenes stuff that Allen does with this forum, but it's safe to say the WSO forum and banner advertising make him a ton of hands free money.

        RoD
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        "Your personal philosophy is the greatest determining factor in how your life works out."
        - Jim Rohn
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  • Profile picture of the author Cason
    Lol they just don't get it.

    I used to think that I just know a couple of things that they don't, and if they just learnt about it, they would happily "make the switch" too.

    But apparently most of them are just too stuck in their reality to accept anything else. It's REALLY weird though. Like you could be walking living proof that this sh*t works, and they'd STILL not believe it... And ask you when you'll come back to reality.

    Well it aint my loss
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  • Profile picture of the author Michael Rosmer
    The smartest guy I've ever met for business and money used to do this test of what he called a "real business". He'd ask can you:

    - Wake up tomorrow...at 10 am?
    - Call in to work and someone other than a voicemail or paid answering service answers?
    - Tell them I'm going on vacation?
    - For 6 months?
    - No, won't have email, cell phone, or anything...?

    If all the above are true you've got a real business with real passive income. In my experience the last one is particularly difficult. I've gone on vacation for a month and earned more money while I was gone than I did while I was around and did that with relatively low maintenance (an hour or two of emails per week, maybe a couple phone calls). What I've found and in talking with all my friends who run such businesses they find the same, if you're totally absent the business declines. You can have renters but they need to be checked up on occasionally or replaced when they move out, your staff need to be motivated, strategy needs to be tweaked a little, investments need to be adjusted, etc. A couple years ago I got one of my companies doing fairly well on about 1 hour per week of work and was pretty proud of that, but found at that level it would slip over time so about 4 hours per week were required to keep it there. You can do a lot with an hour per day when you've built some momentum, but getting completely hands off? I've yet to see that formula in action.

    A better way is definitely out there for people who want it, but it's not a simple straight forward formula to crack, most people fail at it from what I've seen so it makes sense that most of the rest of the world are doubters, so it helps to understand what types of businesses allow you to structure freedom into your life sooner rather than later because they definitely aren't all equal and in all cases you have to be willing to build the momentum first.
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  • Profile picture of the author Bkelly301
    By "passive income" I simply am referring to money that comes to me while I'm not directly working for it. For instance, a high-traffic blog that is monetized in several ways would be a means of passive income. The fact that it would require an upkeep of fresh content doesn't matter to me. I'm okay with that. It's developing the "system" that earns the cash that I'm much more focused on. If the system generates cash independently from direct work, then I consider it "passive income". I'm totally cool with having to maintain the system, but I also expect that the system will still generate cash while I'm not directly working on it too.

    That's my goal.

    If I never achieve monetary success, that's fine too. I LOVE my job. I've never had such a great job that I can make my own hours, work whenever I want, go on vacation whenever I want, and control my own income. It's the greatest job ever, and therefore I'm already successful!
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