03 | What is Passive Income & How to Create It In Your Business
Passive income- a buzz word that’s flying around faster than a mid-west tornado, but what is it and how does one create it?
From the words of the late, great Napoleon Hill in his book, Think and Grow Rich...
“Hard work and honesty alone will not bring riches, perish the thought because it isn’t true. Riches, when they do come in huge quantities, are never the result of hard work. Riches come from definite demands based on the application of definite principles and not by chance or luck.”
Historically wealthy people have multiple sources of income, some of which are passive. How ever, we’re not going to get into this just yet. Because first...
Did you realize that 3% of the population makes 97% of all the money that is earned?
It all seems very unfair, so why is this the case?
Well, let’s be honest, the majority of people are implementing a money earning strategy that will NEVER work if you ever desire financial freedom. Working 9 to 5 or more to collect a paycheck isn’t always worth giving up your time especially when you only get a couple of days off each week.
It’s not entirely your fault, you were conditioned to think of earning money only as trading time for dollars. They claim, “work hard- save hard” but that’s false.
The problem with this money earning strategy is that there will always be a limit on your earning potential because there are only so many hours in a day and only so much that customers are willing to pay you per hour.
So, if we know that 97% of people have adopted the ‘trade time for money’ mindset and are not yet experiencing the ‘good life’ like the wealthy, what is it that wealthy people do differently to have such good fortune?
The answer... a different mindset.
However, there are only THREE ways to earn money: