Thursday 7 November 2013

Thinking Differently About Earning Money

'Work' is swapping your time for money.

The fundamental way of earning money, used by most people (especially in Westernised society), is to have a job where you exchange your time for a fixed wage. What this basically means is that an hour of your time is exchanged for an hours worth of wages. Most people are familiar with this concept.

Each week you will work say 40 hours, so you can confidently calculate how much you earn each week.

The problem is that there is a fixed amount of time that you can work per week, so ultimately, there is a limit to how much you can earn.

Another way to earn money is passively. What this means is that you earn money 24 hours per day 7 days per week without using up any of your time.

What tends to happen, is that you have to 'work' initially, to set up the passive income 'model', and then it just runs by itself earning money without you 'working' for it.

This work that you put in initially may be in the form of writing a book, or recording your new song. Once you have finished the initial creation, it can then earn money for you, passively.

A big part of the passive income idea is that you do not know and cannot guarantee how much you will earn from it. So you cannot rely on the passive income to pay the bills. One week, nobody will buy your book or your song and you will therefore have no income. Most people are not happy with this uncertainty, especially when the bills have to be paid!

So you need to think differently. The first step is to realise that you can earn money in ways other than a job.