Generate A Passive Income
What is your money making mindset? What I mean by ‘money making mindset’ is that, what is your mentality about earning money.
Okay before we go any further just wait for a moment and think about it. Think what type of cash inflow you want in your life. I mean, what should be your main source of income. Just visualize for a moment, how you want to generate income in your future.
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Done?
What did you Think?
I bet maximum people thought about generating their incomes through a job or a business. Maybe some smart people thought about earning money from both sources simultaneously, like working at a job and also doing some network marketing on the side to generate extra income. Good, this is really a great approach.
Whatever way you thought to generate your income, all of you probably had a common mentality, “In order to earn money I have to do some work.”
Here we will break away from this mindset and talk about a completely different approach; “Generate income without doing any work!”
It may sound a bit odd or too good to be true, but why not change your mindset and think about ways (legal, of course) through which you could make your living without working for it. Change your mindset from active income to generating money through passive income.
What is Passive Income?
Passive income means that type of income in which you don’t have to involve yourself actively. For example: The income that you get from renting a home or a shop, the income from the sale of any of your copyrighted product, the interest that you get on your bank deposit, the dividends that you get from shares, the income coming from your business which is solely operated by your appointed manager, etc.
Passive income doesn’t mean that you have to be lazy. I see passive income as that form of income that keeps you active in life, active in those things in which you really want to be active. This means that you are free to do only those things that you are passionate about or you always wanted to do but never did because you didn’t had the time for it.
You could take a vacation with your family any time that you want, you could attend your children’s annual function, if you want you could take your parents to temples and religious places, you could spend a lazy afternoon watching a movie at your home and the best of all you never have to depend on your customer or boss to go on holidays.
The misconception that most people have about passive income is that you could only make a small amount of money. But that is not necessarily true. Here by passive income I don’t mean a small sum of four or five thousand rupees per month, instead I am saying that it is your main source of income. It could be forty to fifty thousand or even up to four to five lakhs per month. The amount of money could vary but it should be enough to give you the financial freedom to live your life the way you want, without worrying about time or money.
Most of the people who lead a financially abundant and stress free life generate the main source of their income through passive or semi-passive income. For example; today Chetan Bhagat earn millions through just the royalty from his novels, many big movie stars earn a major source of their income through investing in various business projects, hotels and restaurants, and not through their acting fees. And they never have to look after these businesses.
Everyone knows about the restaurants and hotels owned by Sachin Tendulkar and Kapil Dev and they also own many other big businesses in which they don’t involve themselves actively, instead they appoint a CEO to run and operate their business. They are free to give all their time to Cricket, which they love and enjoy. In fact if you want to become rich then you definitely have to think about generating passive income.
How to Generate Passive Income?
How are you generating Active income? Today you are able to generate active income because you focused your mental energy towards it. You may have come up with many ways to generate active income, like going to college, getting a degree and finding a good job, opening your own small store, becoming a wholesale dealer, etc.
There is no doubt about the fact that whatever job you are doing is the result of your thoughts and efforts. Today you are earning your main income through your current job or business because you thought that this is the best way to do it. Maybe you think in this way because from childhood you saw your parents and relatives earn their living this way. From childhood you look up to them and hence you are deeply influenced by their way of thinking, which is; ‘work hard, earn money, pay your bills and repeat till you retire’.
The thought never came in our mind that why not work hard, make money and then invest it in such a way that it generates more money until you become financially independent. So what if your grandfather or father retired after the age of sixty, why can’t you break the cycle and retire at forty instead of sixty and spend the rest of your life doing what you want without worrying about money.
The purpose of writing this post was to at least make you think about generating a passive income because if you start thinking about it then you will come up with many creative ideas to earn your living passively. If you focus your mental energy in this direction then you would see many avenues and opportunities through which you could generate a passive income. For doing this you don’t necessarily have to invest a huge amount of money. You could move forward in this direction by making small investments. The important thing is to take that first step instead of procrastinating. You could have always started earlier but better late than never.
Conclusion
In the end I want to make one thing clear that by asking you to develop a passive income mindset, I am not advocating to shy away from hard work. Instead the purpose of this article is to inspire you to reach a place where you are financially free to pursue your passions or interests. And when you could achieve financial freedom then you could do far more useful things for your family and society.
Photo Source: Wikipedia
http://en.wikipedia.org/wiki/Rupee
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