Since I've been a wee little boy, I've wanted to own my own business. When I turned 18 and was legally allowed to incorporate on my own, I did exactly that. But, owning a business isn't exactly the glamour thats portrayed in both media and entertainment today. It's hard work, takes a ton of sacrifices and the road isn't always paved in gold. Plus it takes a lot of self motivation, discipline and can sometimes be lonely. But, what I like about it and have continued to enjoy is the freedom that it provides. You do what you want and the amount of work you put into it directly contributes to the amount of income you can potentially receive.
I decided to start a business based on services. I was a young man who had a talent for programming and I had people willing to pay me to do so. In the beginning it's exciting working up to a consistent income. You think to yourself, more jobs = more money. But what I failed to realize is that building a business around a skill that you offer has its limits. Time, above everything else becomes the most important factor. It becomes less quantity and more about quality. Quick jobs that net the most amount of money per hour.
Now I've been owning my own business for over 10 years (11 years next month) and that's the single most frustrating part about my job. Having a financial ceiling. No matter how hard I work I can only make so much money. And the sad part is that it's not very much money. Not enough to hire someone (and trust me I've tried many times) and the scary thing is, I need to work to live. If suddenly I was in an accident and couldn't work, I wouldn't be able to earn income.
Now, I've been in this position for quite some time and over the years I've tried starting multiple businesses and have tried converting my business to scale with employees and structure and personally I've hated it all. All it did was increase my expenses and made me way more stressed out than I want to be. I'd rather make less money, and live comfortably than work 80 hours a week, constantly searching for work just so I can pay employees to do all of this new work I am obtaining.
Why am I telling you all of this?
Well, because I hope to inspire you to think differently about income, like I plan to this year. Passive income is a big keyword in this, and for those who don't know it basically means income resulting from cash flow received on a regular basis, requiring minimal to no effort by the recipient to maintain it. An example of this might be putting ads on your website. Income is generated regularly regardless of any extra effort you are putting into it. Last week, I watched a video by Graham Stephan where he breaks down how he makes almost $60,000 a month from 6 different income sources.
Here's a man who makes almost $30,000 a month from his real estate commissions, but continues to build out a passive income stream from 5 other sources just so he doesn't put all of his eggs in one basket.
In another video he recommends reading a book called "The Book on Rental Property Investing" by Brandon Turner. It's an amazing book and I highly recommend it. I'm currently 140 pages deep and looking to invest some time and money in the real estate market within the next 12 months. I'm currently living in a rental right now. If I purchased a duplex, lived in one half of the property and rented out the other I could potentially start living rent free while paying off my mortgage. And I could then use the money I currently spend on rent (about $1,200) towards other passive income streams (more rental properties, better equipment, marketing for my website, etc.)
Here are some other ways I plan on creating passive (or mostly passive) income this year:
- YouTube Adsense - putting ads on my videos that i'll be posting regularly
- Website Adsense - combined with the YouTube channel, I plan on driving a lot of traffic to my website through organic methods and hope to receive income from ads on there as well
- Patreon - monthly memberships from people who sign up to support my creative work
Be creative with your work and invest in your education. Life is finite, time is your biggest asset. Start building something up today that will support you down the road. You aren't too old or too young. You don't need to be rich or talented or own your own business, you just need to be willing. Anything that's telling you right now that you can't is just some excuse preventing you from doing.
On a final note, theres' only three more days left in this month. Have you met all of your goals for January? I'm on track to complete 4 out of 5. What about you?
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