Everyone trades time for money. Every working day you will wake up and go to work for the entire day and earning a sum of money for the hours spent at work. And you do this for the next 30 years of your life! It is an one to one exchange, when you stop giving time, you won’t be getting any money. Everyone has the same number of hours everyday, 24 hours, but why some people can earn more every day? Yes the higher paid workers are doing more value work, but was paid below the value they have contributed to the company.
Most corporate employees are paid fairly low, do a quick calculation: Monthly Salary / (9 working hours * 20 working days).
So if you are earning $2,400 a month, you are paid $13 per hr (~$30,000 annually)
If you earn $4,000 a month, then you are paid $22 per hr (~$50,0000 annually)
If you earn $8,000 a month, you are paid $44 per hr (~$100,000 annually)
Compare if others that have successfully got out of the rat race and not trading time for money. One had created a stream of income by writing a book and earning royalties, annually he is earning $50,000 on the first year, which he had invested 100 days writing it. So that translates easily to $55 per hr. And did you realize he only need to work 100 days rather than the usual 200+ working days? This does not stop here, the following year his book gain popularity and royalties rose to $80,000 and he had not spent anytime on it, the average hourly rate rose to a whopping $144 per hr for that 100 days he spent in the first year! If he keep up the momentum and write more books, the return is exponential!
Can you see the difference now? It is about investing time in the right thing that will bring you exponential return. Passive incomes are incomes that keep coming in without you having to trade with time. So if you are able to create more passive income, you will only need to spend less time for money. And if you reach a stage that money flow in more than what you trade time for money, you don’t have to work anymore! That is financial freedom, the passive incomes you created started to bear fruits that you no longer have to worry about it any more.
Although you might have tried and passive incomes may not come as much yet, say $1000 a month, isn’t that better than trading time for money? You have at least additional income to now, and passive incomes grow on their own, and you can expect more to come gradually. So don’t get discouraged when it doesn’t work to your expectation. Hang on and you will be there soon enough!
You can gain more tips and guides from many sources about creating passive income. I recommend you to find out more and read a couple of books that will accelerate you to creating your first passive income. Personally I enjoy reading Secrets To Creating Passive Income and becoming financially free - even in a slow economy
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