I still remember the first time i earned any substantial amount of passive income
no i'm not talking about the pitiful two or three cents you were in a year from
your savings account i mean real income i remember thinking that when that money
hit my bank account it was as close as i would ever get to experiencing magic let
me tell you that ever since that day i've been on a quest to generate as much
passive income in my life as possible fortunately since that first taste of
earning passive income i've been successful in building out many new
income streams and as such have noticed that each new stream requires three
important components what are they continue watching and you'll find out
and if you're new to the channel then hit the subscribe button below for more
life changing content the idea of earning passive income is one of the
most glorified concepts in the world of finance today and it's for good reason i
don't think i'm surprising anyone when i say that most people i talk to dislike
their jobs and thought of being able to build up enough passive income streams
that would allow them to leave their job is incredibly endearing now i will say
that in the last few years more and more people have become aware of the power of
passive income but there are still many people who think there is no such thing
as passive income and this is a shame it's a shame because there are many of
us out here living our best passive income lives while they slave away
chained to their active income ways i know for myself personally my foray into
the world of passive income started three years ago when i was working in an
incredibly demanding job and was way more stressed than i should have been
based on the amount of money i was making i remember that despite working
60 hours a week i was barely able to cover my bills and let me tell you i was
not living an extravagant lifestyle by any means basically i was forced to
generate more income and given that i was working so much i had no choice but
to learn to earn passively i'll admit that i was far from the quickest learner
when it came to making passive income it took me about two years to start earning
four figures a month in passive income but fortunately every time i wanted to
quit i would tell myself that if i didn't figure things out i would be
stuck in that low paying soul sucking job forever and that was simply not an
option i was willing to accept and if you're in a job right now that you can't
wait to get out of make sure that you smash that like button below because
don't worry we're all going to make it honestly i believe that if i would have
understood what it took to actually start generating passive income it would
have made the process 10 times smoother not that i've reached my passive income
goal any sooner but at least i would have understood the key elements of
passive income and how i needed to combine them to see the results i wanted
fortunately over time i started to uncover these key components and the
first was identifying and cultivating a source of value unless your grandmother
gives you money or you find a 20 bill on the bus generally speaking in order to
earn money we must provide value to some this may seem obvious but to others this
is an important concept to grasp in their quest to earn passive income a
great example of exchanging value for money is in your current job let's say
that you work as a data clerk the value you provide is in the form of the data
entry work you do and in exchange for this value that you provide your
employer promises to pay you every two weeks again this is obvious but is a key
component you must understand when starting to earn passive income because
when you are earning passive income you need to learn how to provide value to
others without being actively involved at least in my own passive income
journey when i made the switch in this mindset from how do i make passive
income to how do i provide value without my involvement the game totally changed
i began to ask myself what knowledge skills or assets do i own that i can use
to start making income while i eat while i exercise and of course while i sleep
so for me the answer was obvious given that i'm a cpa i am constantly exposing
myself to new financial information i figured that starting a youtube channel
around personal finance would be a great way to make passive income and like i
said it took me longer than like i said it took me longer than the average
person to start earning positive income but fortunately i had to realize they
should offer value that i already possessed to build out new streams of
passive income unfortunately many people overlook the skills knowledge or assets
they already possess when trying to make passive income they think they need to
learn a brand new skill or reinvent the passive income wheel to start making
some of that sweet while you sleep money chances are you already have a value
base you can use during passive income you just haven't realized it for example
you may have taught english abroad for three years after college some people
would see this experience as not being passive income friendly but i bet a ton
of young adults would love to take a course on how to find jobs and set up a
career teaching english overseas and given that you already have this
experience you're the one that could teach them through a blog an online
course or the like alternatively you may be a homeowner who's gotten one too many
rooms in their house and your quickest path to making money while you sleep is
by taking on a roommate so in short the first component of making passive income
is to identify what value you have to offer and how you can package that value
to make money without being involved moving on the second core component
making passive income is to understand that earning money while you sleep will
take one of two primary resources these primary resources are time and money and
they can be used exclusively or in tandem to earn you passive income
depending on what value proposition you intend to offer you see i hate it when i
talk to people and they give me the excuse that they can't make passive
income because they have no money let me tell you when i built my first few
passive income streams i had very little money to work with for example i started
my first youtube channel with less than a hundred dollars which now makes me
over a hundred thousand dollars a year and many of my students in my course six
figure two are seeing great results with very little startup costs too if you
want to do the same you can check out the link i've left in this video's
description below for more information the rest of my success came from putting
in endless hours of work which means that i primarily relied on the resource
of time to make my passive income dreams come true so what i'm trying to say here
is that a lack of money is no excuse for not starting your own quest to earn
passive income now the other reason why you need to understand how these
resources impact your passive income success is because you can leverage said
resources to speed up your path to passive income glory let's face it money
can solve a lot of problems and this is true when it comes to multiplying your
income through passive channels an example of this is buying real estate if
you already have a ton of money set aside within a few months you can
acquire a property find a tenant and start to earn passive income to the rent
payments you collect alternatively if you have a stash of cash you can invest
that money into dividend producing stocks and start to collect dividend
payments every month without ever lifting a finger in short having capital
is a time hack for making passive income but it certainly isn't required now i
wish you could say it's enough to have value to offer and to understand what
resources you must possess to start earning passive income but if i did i
would be lying no amount of value in the world or level of resources is going to
allow you to realize passive income success without vision vision is the
third and final component you will need in your passive income journey you see
when we compare active to passive inc you see when we compare active to
passive income there are two main differences the first is your level of
involvement which is a no-brainer with active income your effort is always
required but with passive income your level of involvement can vary the other
difference is your income time frame typically with active income you were
paid right away for your efforts but this is generally not the case with
passive income as i've mentioned my first attempt at making passive income
on youtube took two years before my efforts bore fruit which meant that i
spent a lot of time working for future awards how did i manage to stay so
committed to this cause without seeing any returns for my time simple i had
vision i could envision my future self collecting paychecks from youtube every
month and i knew that that was the life i wanted for myself so when all my
friends were going out partying or traveling i was at home grinding away
trying to make the best content i possibly could now just because most of
my means of making passive income comes from content creation doesn't mean the
same principle doesn't apply to most methods of earning while you sleep
another great example of having vision is dividend investing nearly all
successful dividend investors start from scratch to build their portfolios and
they invest regularly with the hopes of one day being able to live off the
income it produces they understand that sacrifices in the short term will yield
much greater rewards in the future and are willing to give up spending that
money to invest it instead i simply can't stress it enough how important it
is to see the end goal in your mind before you step into it in real life i
would go as far as to say that most people who earn passive income today
would have never gone to where they are without vision especially when going
about it in non-traditional ways like i have as dave ramsey says live like no
one else so you can live like no one else and if you are willing to put in
the work now i promise you'll have people looking at you in envy when
you're cashing huge paychecks while you sleep and this leads us to the final
point i want to make which revolves around the importance of making passive
income that most people overlook sure it's cool to make money when you're
doing anything but working and with an understanding of the three components i
just shared you should be able to do just that but the other factor that you
will come to appreciate once you start earning passive income is being able to
supplement your income without becoming time poor one thing i've come to realize
is i've gotten a little bit older is that my time is becoming more and more
scarce between trying to manage my job my health and my relationships there are
a few free hours left in any given week however your creditors and the stores
you shop at don't care how busy you are they will still continue to raise their
rates and their prices to suit their needs not yours this is why passive
income is essential because without it your life will become one long work
shift and quite frankly work shouldn't be the center of which your life
revolves around therefore given that you now know what it takes to start
generating passive income i implore you to start now start laying the foundation
for your future passive income life one blog post one youtube video or one
investment contribution at a time because trust me your future self will
thank you hey it looks like youtube thinks this next video is the one that
will change your financial life forever give it a watch and let's see if they're
right