It's Time To Think About Income Differently
Dollars For Hours
Let's face it.
Working for a living has its limitations. You can only do so much with a dollars-for-hours mentality. You only have so many hours in your life, and frankly, you can't, (shouldn't) or don't want to use all of them for generating income.
You are limited by this equation:
Total Earned Income = Hours worked x Dollars per hour
After you max out at working 24 hours per day, your upside financial income is limited by the amount you earn per hour. And you can't generate more hours. Or can you?
Creating Financial "Time"
What if you could generate more time to earn income? Would you do it?
Well, you can't generate more of YOUR time to create income, but you can leverage your time, using a variety of income strategies to generate more income. It's using a strategy of creating "passive income". There are many different types of passive income that one can generate. In a nutshell, it's having income coming in from investments of time and/or energy that you expend. But rather than having a one-and-done outcome, like typical dollars-for-hours jobs, the income from these sources continues to come in with far less effort and time than the initial investment.
Let's list some great opportunities that everyone should consider in their financial future. Now remember this, this is not an individual recommendation for you, nor is this an exhaustive listing. Anything you decide to do is your own personal decision for which you are responsible.
Now, let's look at some options for passive income:
- Franchise. There are an enormous number of franchises available, many (but not all) of which are great opportunities. They do have risk, and unless you have someone who you trust completely, otherwise you are at risk of embezzlement. Types of opportunities: Fast Food. Carwashes. Laundromats. Self-storage facilities.
- Create Information Products. This requires you to put out time initially, but only a modest amount of money. It's great for creatives and you can leverage your knowledge. Another great thing....once set up, it allows ongoing digital purchases by people all over the world, and it's "evergreen".
- Self Serve Machines. Ever wonder who was banking all of those quarters for candy, gum, ATM's, etc.? Someone is, and it could be you. Approach these carefully because the investment may be more than you think, and you will have to secure where to put them, re-stocking, etc. You can find out more through Franchise opportunity sites.
- Affiliate Marketing. If you have a "following" of people, especially online, there are large opportunities to sell other people's items, and take an affiliate commission. This can work together nicely with information products online.
- Royalties. Everytime you hear a song, usually, somebody is getting a small payment. You too can tap into this buy buying rights from others, or generating your own unique items that can be licensed. That includes songs. Articles. Inventions. Photos, etc. Be creative in what you generate and how to distribute it.
- Network Marketing. While network marketing has had a bad rap in the past, it can be a great source of ongoing income from the development of a downstream sales team. While it does take effort and some money, it can be quite rewarding with the right company.
- Real Estate. This takes knowledge, money and effort. People either swear by it ... or swear at it. Huge fortunes have been made using real estate, but others have had huge losses.
- Create a Business. This is one of my favorites. I am an entrepreneur at heart, and creating a business from a blank page can be daunting ... and rewarding. There can be a huge expenditure of time, effort and money initially, but when constructed correctly, it can (but there is no guarantee) reward you generously at the back end.
With all items, remember that there are only two reasons for creating any type of business. The first is to throw off cash flow for your benefit. The second is to generate equity that can be sold to someone else in the future if you decide to sell your business. Don't ever go into business for "fun". While you should look to enjoy what you are doing, having fun is NOT a reason to start, buy or run a business. It's all about generating financial value.
Well there you have several ideas on how to make more money using passive income sources. The bottom line is that you have to determine where your interest lies as well as your skillset, financial resources and commitment to cultivating these opportunities into the future.
Do you have other ideas that you can share with other readers? List your thoughts and ideas below, as well as providing any tips, tricks ... or pitfalls. Let's all learn together.
WhiteCoat Risk Management provides these articles to help improve general risk awareness in all aspects of your life. It is not responsible for any actions you take or fail to take regarding any aspect of your financial planning or risk management. This article is provided for information purposes and is not intended to provide individualized advice. You alone are responsible for your decisions.
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