Updated: January 16, 2021
Passive income is the most desirable type of income. After all, what’s better than having your money work for you and not the other way around?
And if financial freedom is your goal, then seeking passive income opportunities should become part of your life.
However, while there are many personal finance articles out there that talk about its necessity in wealth generation, I think that most simply encourage and inspire.
And only a few can likewise emphasize the proper mindset that will make one’s pursuit truly successful.
If you’re someone who is on an active pursuit of financial freedom, then I’m sure you know how passive income can be so difficult to build – yes, there’s no instant formula for it.
And that’s just one lesson I’ve learned through the years about passive income opportunities. So what else have I discovered? Here are more realizations:
Passive income is not for the lazy.
People want it because they’re tired of working for money. Having this mindset can be bad because it could mean that you’re not prepared to work hard enough for passive income.
It takes time to build and it requires a lot of work, energy, and dedication. I realized that if making passive income was easy, then everybody would be doing it, right?
So perhaps the better reason why you want this is because you know that you cannot work for money forever.
You’ll grow old, your skills and knowledge will become outdated, or your priorities in life could change. And for whatever reason that may be, it’s your passive income that will sustain you and that’s why you want (need) it.
There is such as thing as semi-passive income.
Semi-passive income refers to opportunities that earn well but require occasional work. And in my experience, pure passive income opportunities relatively give low returns.
But semi-passive opportunities, in exchange for a bit of your active time, can easily give you as much as you would normally earn as an employee (active income), and sometimes even more.
But what’s important for you to realize here is that many of what other people say as a passive income opportunity is in reality, semi-passive.
For example, a vending machine business is often referred to as a passive income business. But it’s actually semi-passive because you still have to monitor your sales and inventory.
When you pursue a semi-passive income opportunity with the mindset that it’s purely passive, then you’re probably leading yourself to disappointment.
Never neglect active income.
I believe that there’s a trap that people often fall into when they first realize the idea and power of passive income. And that is to give active income the least priority in their lives. This is obviously a mistake.
While passive income is the most desirable type of income, it doesn’t mean that you shouldn’t pursue and commit to active income anymore.
Passive income “pays” for your future expenses but it is active income that mostly covers your present-day expenses.
I’ve seen a handful of people who have lost interest in giving their best at work because their minds are always busy with finding passive income opportunities.
Again, success doesn’t happen overnight, and while you’re still waiting for it to grow, you have to realize that there are bills you need to pay.
What about you? How’s your pursuit of passive income going? Do share them below by leaving a comment.