What is passive income, can you enlighten me on this passive income thing?
That was the exact question posed by a reader of my entrepreneurial journey Facebook post.
Because my readers are the reason for the existence of my blog posts, their wish should be the determining factor for what I write,I am dedicating this blog post to answer my readers question in deference to their wish.
So, what then, is passive income?
There are various definitions of passive income. Let us take a look at a few of them.
In recent times, passive income has been a relatively loosely used term. It is defined as money earned regularly with little or no effort on the part of the person who is receiving it.
It is also defined as earnings an individual derives from rental property, any enterprise in which he or she is not materially involved, dividends and interest are also considered passive income.
It is also a term used by proponents of work from home and be your own boss professional lifestyle.
This last definition is the focus of this blog post. It is for those who are interested in working from home with the objective of becoming their own boss.
But most importantly, it is also for smart and discerning workers who have the intention of putting their extra time and possibly weekends to good usage. The earnings thus derived could be reinvested. This requires proper management of time and planning.
So what in essence is passive income? But before we can adequately answer that question, let us determine what it is not.
Passive income is not related to a get rich quick scheme. This is what one successful passive income earner Steve Pavlina calls a moocher income.
According to Steve, a moocher income is when people resort to earn money when they fall prey to a get rich mindset.
What does this mindset mean? It means an undisciplined attitude that seeks to get something for nothing. The objective is to find a way to mooch money from people without providing any meaningful value.
It is certainly not a pyramid scheme. By this I mean where people are merely recruited into a scheme and paid some form of money without the sale of any product or services.
Nor is it a fantastic and bogus investment scheme that promises unimaginable yields.
Passive income, therefore, requires the investment of massive ton of work upfront. Thereafter, you can sit back and begin to enjoy the dividend of your efforts. It can also be automated.
Let us assume that you are a very good writer. You have decided to write a book on how to attract the most suitable spouse based on your 50 years of experience as a successful husband.
No doubt, this requires investment of time and effort. Possibly three months of sleepless nights. With the writing and publishing of the book completed, you can hope to expect good sales and money from royalty would be hitting your bank account on a regular basis.
You may also be interested in building a rental property. This would also require making a lot of sacrifices in terms of saving part of your income over a period of years. It is only after the building is completed and ready for tenants can you begin to dream of enjoying the fruit of your labour.
Can you begin to see the picture very clearly?
This is what passive income means.
However, the reality for most workers is that the ability to save has been reduced, thanks to the economy.
In my next blog post, I shall advance compelling reasons why every discerning and smart worker should begin a home-based business.
I do hope this blog post answered your question and that you got value from it. If you do, please share it to your friends and all your social media networks.
The entrepreneurial journey continues. Please keep a date with me. If you have any question, hit my Facebook fan page, send me a personal message, or call my cell phone: 07012328236.
PS: Rather than chasing friends, relatives and colleagues to join your business, why not direct your efforts on a better strategy and see your MLM business explode? Click Here For Access