Harness Money

The Holy Grail of money is passive income. Not just a little bit of passive income, but thousands if not millions or dollars a year coming to you passively.

What is passive income?

Passive income is cash flow income an individual earns from owning an asset with little or no effort on the part of the owner. Examples of passive income are:

– Business income

– Rental property

– Stock dividends

Most passive income requires the owner to put in work up front to get the income started and then an automated system takes over with maintenance on the part of the owner.

My favorite form of passive income is stock dividends, because it requires very little maintenance. Many people choose rental property income, because the owner can use leverage in order to amplify their returns.

Business passive income can take time and effort to create. Be patient and keep working on your business and keep thinking of ways that you can automate any work that you are doing.

What is the most common form of passive income?

Most workers are making passive income and they do not even know it. It is the 401k. An employee puts money into an investment fund and your company matches it. That invested money grows and generates passive income which is them reinvested to generate more passive income. This is how most people pay for their retirement. They save today and then withdraw from their retirement account and they receive Social Security.

Social Security is the ultimate form of passive income. You work today paying into the Social Security fund and that money is distributed to seniors. When it is time for you to retire a new group of workers puts money into the fund in order to pay for your retirement. And the cycle continues.

Your goal is to become an owner.

Owners get all the passive income. Employees work for shareholders which own businesses. Those shareholders receive dividends, because they are owners. Owners get to set salaries.

Start thinking of yourself as an owner and start buying or creating income producing assets. This is where passive income comes from. It is not easy. I have been working for many years at creating passive income and I created a good amount, but I am still working on it. That is ok. It is hard to build up enough assets to quit your job and live off that money.

But I believe in you. I believe that you are creative and hard working. You may need to get or start a side hustle. Which you can learn about here.

Or you may need to save and invest more money into dividend paying stocks.

The key is to start now and keep working on it.

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