Life Without Passive Income
Most of us have been taught the 40 – 40 – 40 plan. Work for
40 hours a week, for 40 years and then retire on 40% of our income. How is that
working for you?
Some realize the futility of this plan somewhere along the
way when it just didn’t produce enough. Some don’t realize it soon enough and
end up spending their retirement years working at Walmart. The fact is, that
only 3% of the population are retiring in a state of wealth and dignity. So
most are not learning their lessons at all.
More and more people are trying other kinds of projects and
alternative income sources. Investment strategies can be helpful if you learn
and carefully apply the principals. I have personally been reading some of
Kevin O’Leary’s books and I think that is making me smarter. J
However, investments do come with risks and many people do
lose money from them. Owning a business offers more tax advantages than just
working a job, but many people just end up owning their job and call it a
business. The best business models are franchises and other ideas where multiplication
is possible. Where there is multiplication, or even duplication the opportunity
for real profit does exist. One must realize though, there are risks in
business. 80% of all businesses fail in the first 5 years. A successful
franchise model is costly. One needs between $50,000 and $2,000,000 to just get
started. They fail less often, but one needs to have the capital to start. That
is an obvious disadvantage for many.
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Passive income is money that comes in residually. You did
something that created money and then somehow it continued to come in. Writing
a book that has royalties paying out, is one example of passive income. Musicians
and artists may have passive income. Owning multiple real estate properties may
produce passive income if you are not personally collecting the rents and managing
the properties. It is only passive if you are truly not touching it and stoking
it and working it to keep it going.
While playing Robert Kiyosaki’s board game Cashflow 101, I
had a revelation. Most of what we think is passive income is not. It still
requires some work. Most importantly though, one cannot actually get ahead in
life without passive income. The fact is, we are still in the rat race of life
until our passive income exceeds our expenses. That is different than how we
have been trained. We think we will be on easy street when our income exceeds
our expenses. That is simply not true. One life disaster can still take us out
if we are relying on ANY kind of non-passive income! A job is not secure, no matter how secure that it seems. You are an expense to your company and it is in the interest of the company to reduce or eliminate expenses. The only way to be certain of
financial stability is to have diversified PASSIVE income. That is a source of money
that is producing more money on it’s own. The best kind is broadly based on
more than one source.
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You need to think differently than you ever thought before.
You need to assess what is truly passive income. I thought I could create
passive income in my business by building a franchise model. Not a bad idea,
but it takes a lot of time and work to get there. So what could I do to start
some immediate passive income at the same time?
I chose to do it with a network marketing activity. It is something
I do on the side. A few hours a week in an industry that fits alongside what I
already do. So it is not a big stretch for me to accomplish. I looked around
for a long time and tried a couple things but then I found one that fit my
life. It is one that works with business owners. I own a business referral
network, so that made sense to me. I did not have to change the products that I
used. I just started getting cash back on my gasoline and groceries and
teaching others to do the same while they run their regular businesses. I started
showing our business owners how they could get more loyal customers coming to
their existing businesses and it has been good for them and for all of us. It
is a win/win situation.
Some People Are Afraid Of Passive Income Sources
I had to try several ideas before I found one that worked.
Network marketing companies are businesses like any other businesses and some
of them fail. 80% of them actually. So some people get discouraged by that
because they don’t understand that all business, all investments, and all of
life has challenges and failures. I have seen people try a network marketing
company, fail, and then never get up again. That is sad. There are more network
marketing companies producing millionaires in North America than in other
industry that is legal. Someone is making that work. That someone could be you.
Usually it is fear that holds people back. They are afraid
of failure. They are afraid of ponzi schemes, even though they are not even sure what a ponzi scheme is. They are afraid of pyramids, even though their government and their church use a pyramid structure, and they are clueless about what a real illegal pyramid would look like. They are afraid of being judged by friends and family who won’t be
there to pay the bills when things get tough anyway. They may be afraid of
success and sabotage their own efforts. Fear is never a pretty thing and one
should not allow it to rule their life. Education overcomes fear. Find out more and get the facts about network marketing.
The fact is network marketing has become a respected
industry. My personal opinion and yours is irrelevant. Network marketing is legal. Companies are being endorsed by famous people and legislation has been passed making them viable and credible. People are succeeding at it. It
does produce passive income, with usually a low cost affordable investment. It does help wage earning employees get huge tax
advantages. It does provide a learning environment for multiplication,
entrepreneurship, and healthy relationship management and growth. Anyone who
has ever had any success in the industry never wants to go back to anything
else. That says a lot.
If you have had your dream stolen, I hope you don’t quit. If
you have tried something and failed, I hope you realize that failure is the
first step to success. If you are afraid of investing your time and your money
into anything new, I hope you will keep looking and learning. Don’t cut
yourself off from opportunities because of other people’s opinions. Warren
Buffet said no good thing can come from saying “no.” And I would add that there
is promise in the word “yes” and there are possibilities in those “yeses.”
Robert Kiyosaki, Darren Weeks, Bill Clinton, and Donald
Trump are public supporters of network marketing. You might want to think about that the next
time you are considering an opportunity.
Always Loyal2U,
Kerry George
This is a pretty funny video about someone who is not very open minded.
This is a pretty funny video about someone who is not very open minded.
Life without a passive income is hard. You might want to try life with a passive income.
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