The idea of being able to sit at home in my underwear, watching whatever catches my interest on TV and occasionally checking my bank balance and watching as it automatically keeps increasing is the fantasy sold by many internet marketers. Who doesn't want to be able to make money be doing nothing? It's just like the Ron Popeil Rotisserie Oven "Set it, and forget it!"
Unfortunately, I think this is more fantasy than reality. Unless you were born to wealthy parents and you have an irrevocable multi-million dollar trust fund, chances are that you are going to have to put in lots of effort to get that bank balance to increase. Notice, I don't say "work" because I have an adverse reaction to that word. Effort, can be fun, or at least not something that you have to dread doing.
I'll give you a quick example. In 2011, I was traveling weekly for business and staying 3-4 nights a week in a hotel. Because of this, I joined the airline and hotel's loyalty programs. Then I signed up for the hotel branded credit card. Then, as I tend to do, I started researching and reading about how these loyalty programs work, because I had heard stories of people flying around the world for practically free. Previously, my belief was that these loyalty programs were more work than they were worth.
I spend many hours learning about these programs such that now I have pretty advanced knowledge of them and receive at least $8,000 of real value from participating in the program last year and will receive about $5,000 of value from them this year. This money is practically free. I didn't have to go to a desk and do mind numbing work to make this money. I did have to spend quite a bit of effort, though the effort was fun. It was a hobby, versus a job. Notice, this is not passive income.
The same is when you think about some artist that sits at home and collects royalty checks. The only way they could do that is by taking lots of action. I read that Samuel L. Jackson makes something like $300,000 in residual income each month, and he is also one of the most prolific actors who has put in lots of effort to produce this residual income.
So, what activities can you and I do that have a chance of producing residual income? Instead of thinking want can I do less to make more money, think about what can I do more that will continue to produce income.
Unfortunately, I think this is more fantasy than reality. Unless you were born to wealthy parents and you have an irrevocable multi-million dollar trust fund, chances are that you are going to have to put in lots of effort to get that bank balance to increase. Notice, I don't say "work" because I have an adverse reaction to that word. Effort, can be fun, or at least not something that you have to dread doing.
I'll give you a quick example. In 2011, I was traveling weekly for business and staying 3-4 nights a week in a hotel. Because of this, I joined the airline and hotel's loyalty programs. Then I signed up for the hotel branded credit card. Then, as I tend to do, I started researching and reading about how these loyalty programs work, because I had heard stories of people flying around the world for practically free. Previously, my belief was that these loyalty programs were more work than they were worth.
I spend many hours learning about these programs such that now I have pretty advanced knowledge of them and receive at least $8,000 of real value from participating in the program last year and will receive about $5,000 of value from them this year. This money is practically free. I didn't have to go to a desk and do mind numbing work to make this money. I did have to spend quite a bit of effort, though the effort was fun. It was a hobby, versus a job. Notice, this is not passive income.
The same is when you think about some artist that sits at home and collects royalty checks. The only way they could do that is by taking lots of action. I read that Samuel L. Jackson makes something like $300,000 in residual income each month, and he is also one of the most prolific actors who has put in lots of effort to produce this residual income.
So, what activities can you and I do that have a chance of producing residual income? Instead of thinking want can I do less to make more money, think about what can I do more that will continue to produce income.
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