It is interesting that in real life, you should be building on three income streams. Your work, which for most people is obvious; passive income, like royalties in music or when you have written a book; and the value of the business. Last weekend, it was a kind of a shock to me, I discovered that the passive income for a lot of people was like a mystery. And of all these income streams, the most valuable.
What is income according to most people? It’s a salary from a job – or profits from a business. The fee of a consultant. It’s the time spent and you get paid for it. The effort made, job done, and you bill them. Even when you are sole entrepreneur, this category often looks and may feel like a salary. Money for your time.
Also the value of a business is not so difficult in many people’s minds. Of course, this is the case for entrepreneurs who create a business and aim to sell it. That’s the first catch. Many entrepreneurs have difficulties selling their business for a reasonable price and very often: this is the money they had assigned for their old days. What happens if the economy goes down? What if the younger generation is not attracted to it? What if the economy changes and the business is not ‘current’ anymore? Pension down the drain.
Then a passive stream of income. Many people find this difficult to understand. Best is to imagine the royalties when you write a book or create a piece of art. Everytime when it gets sold, you – or when you die, the next of kin – get the money. Eternally. You do something once and benefits from it for your life. It’s like a coach, not being paid for the training session itself, but for the business benefits, eternally. This is an income stream that continues. And if you do it cleverly, you expand the group of people contributing to it, so the income grows in time even by people who you don’t know. Then you create an economy, which provides you of an income that is recession-proof. Which is yours, and where you can make it work if you want to do. Or you make it just coming in. You are not dependent of people deciding that it will be cut by say 13% because investments didn’t work out (like some pension funds seem to threaten to be doing). It creates freedom to set your own priorities in time, mind and activities.
That’s why you should set your goal on a stream of passive income. You can do it parallel or in addition to what you are doing now. Get your bum in gear. Especially in this time.
- How To Create Online Passive Income Streams (realgoalgetter.com)