The dream of those who desire wealth is one where they make money without doing much. The proper turn for gaining wealth without generating new content is “Passive Income.” Passive income may come in the form of matured stocks or royalties from the baby modeling gig you did as a small child. Passive Income is any profit gained from previous work.
In theory, one would then be able to sit around and enjoy a steady stream of income from a sound stock portfolio and/or your latest ebook revenues. Unfortunately, the truth is that Passive Income doesn’t actually exist.
Financial Freedom is when your Passive Income is Greater Than your Expenses
This is not a metaphor. This is a fact. And the fact is that this situation never occurs in life. Why? Because unless you already possess an impressive stock-portfolio, you cannot continue the flow of necessary passive funds without eventually getting off your island in the Bahamas and going back to work.
It is popular for many people to write a niche eBook and expect the money to roll in forever. It’s not hard to recognize that the market is drowning in individuals taking advantage of this tactic. Go and read the most recent self help book you purchased on amazon. Now, flip to the front cover. There is about a 50/50 chance the author actually has any training or experience in the field.
The more “niche” the book gets, the lower the chances the author even wrote it themselves. Individuals have been taking advantage of ghost writers in order to live on this “Passive Income” without doing any part of the work themselves.
The unfortunate truth is that no one can remain in front of the competition forever. Even if you write under a dozen pseudonyms and milk the ghostwriting market for every penny you can get out of it, eventually, the work will catch up with you. Even the act of staying ahead of trends is a time consuming job you will find yourself swimming in.
Build your work portfolio. Rather than looking for one magic passive stream, work to make many small streams of previous publications and smart investments. By the end of your career, this “passive income” will become what it is intended to be: a nice supplement to your retirement plan.