Realities about Passive Income Opportunities
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 priority.
However, while there are many personal-finance articles out there that talk about wealth generation, I think that most simply encourage and inspire.
And then there are those who use the concept of passive income in their seminars or in their books to make people heed their call to action—to enroll in an expensive course, join a network marketing company, or pursue a complex business model. Unfortunately, that is sometimes alarming, because, in one’s desire to have a passive income, one could find himself/herself in the middle of something he/she is not ready to do.
However, there are those who emphasize that the proper mindset is first needed to make one’s pursuit of passive income truly successful. If you’re someone who’s been trying to achieve financial freedom, then I’m sure you know how passive income can be so difficult to build.
That’s because there’s no instant formula for it.
And that’s really just one lesson I’ve learned through the years about passive income opportunities. So what else have I discovered? Here are more of them:
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 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You’ll grow old, your skills and knowledge will become outdated, or your priorities in life would change. And for whatever reason that may be, it’s your passive income that will sustain you and that’s why you 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 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 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 your passive income to grow, you have to realize that there are bills you need to pay.
Final thoughts
Passive income is important, as it is one of the things that will take you closer to achieving financial freedom. However, as with all goals, it all starts with the proper mindset.
Realize that passive income requires as much hard work as building a successful business. It is not for the lazy and will require focus, discipline, and persistence. And, more important, it takes time to build a sustainable amount of passive income. So strive to find a balance in giving your time and effort between your present active income and future passive income.
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Fitz Villafuerte is a registered financial planner of RFP Philippines. Learn how to become financially fit at the 5th Financial Fitness Forum on March 25 at SMX Aura. To register, e-mail info@rfp.ph or text <name><e-mail> <RFP> to 0917-9689774.
Source: http://www.businessmirror.com.ph/realities-about-passive-income-opportunities/
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