I don’t like saying ‘never’, but in this case, I’m pretty confident you’ll never make passive income.
We’ve all thought of ways we could make more money. And the cherry on top would be to make more money through passive income. Who doesn’t want to make money while they’re sleeping or on the beach somewhere? If you google this, you’ll be bombarded with with how to’s – ‘how to make money without working’, ‘how to make money while you’re sleeping’, ‘how to earn more and work less’… you get the idea.
But the reality is that you will not make money while doing these things. The problem is that this is pure crap.
Passive income does not exist
It’s like the unicorn of making money. I promise you, you will not make a penny through passive income. So it’s best to give up on this dream and focus on real ways to make money instead.
I know what you’re thinking – “how about rental income”. Even rental income isn’t passive. If your tenants’ dishwasher breaks down, their sink backs up or they don’t pay their rent without you harassing them every month, this is not passive income. You are making some sort of effort to resolve the problem. If they’re renting a room in your home, the very fact that you’ve had to make concessions to accommodate them means it’s not passive income.
Getting an inheritance isn’t passive income either because it’s a gift, not income. Making money from investments isn’t passive income either because if you’ve invested this money on your own, you’re hopefully doing continuous research on the investments that will benefit you most.
“But what about Pat Flynn? He makes a 5-figure monthly income from his blog!”
If you’ve researched how to make passive income, you’ve definitely come across Pat Flynn’s Smart Passive Income blog where he’s making 5-figure monthly income from his blog. Look at his income reports, none show that he made money by taking a nap. He’s writing books, doing affiliate marketing, podcasts, how-to videos… I could go on.
It is anything but passive.
He may have put in the work months prior and is reaping the benefits of his work, but he hasn’t made a penny by simply existing.
I’ve heard of big-time bloggers making money while they sleep from their products. BUT… they worked hard to create these products prior. I like to think of it as delayed income. They may be making money while they sleep, but they’ve lost nights of sleep developing these products.
Why the passive income unicorn is actually COSTING you money
I’m all about diversifying my income streams and like everyone else, I dreamt of making passive income. I spent hours reading about how people make passive income. Unfortunately, the time I spent researching how I could make passive income meant that I took away time from actually generating any real income – the opportunity cost.
Chasing this this dream is costly! Eventually, you’ll realize that you can’t make money while you sleep and get down to business. But imagine the time wasted had you started when you were busy researching? I’m embarrassed to tell you how much time I’ve wasted researching, so I won’t… let’s just say it cost me a lot of money.
Wealthy people look for income opportunities, others look for short cuts
Look at all the successful business people you know or have heard of. How many of them are chasing passive income? I’m willing to bet none. They’re busy launching products, consulting, booking speaking gigs and having you read their ‘How To Make Passive Income’ ebooks.
Once you embrace that there is not such think as passive income, you’ll start planning how you can make additional income – active income! If you have a full-time day job and have an entrepreneurial spirit, you’ll start a side hustle, you’ll start consulting with your free time, if you have strong organization skills, you’ll provide others with virtual assistance. You’ll put the ‘How-to” book down and you’ll get out there and start making active income.
It makes more sense to create income generating strategies rather than wasting time trying to find a short cut to making money. If there were short cuts, far more people would be swimming in cash.Strategies like creating a side business after your 9 to 5, negotiating a higher salary or getting a new job that pays more are all proven ways of making more money.