Passive income is not for everybody
Apparently – as I’ll be told – people must always work hard 9 to 5 to earn their food. Oh – but many are oblivious to people in managerial positions who have no fixed hours and who rake in tons of dosh. Some of those – the likes of Elon Musk – can decide their hours of work, when they take leave etc. Invariably most ‘blue chip’ type execs who own their companies, work terribly hard and it’s not strictly 9 to 5. But they’re managing things which are earning them passive income. The whole organisation works to create that income. In other words – in case you didn’t get it – they’re not doing bull work on the shop floor.
I think passive income concept means:
- Doing some initial work that sets in chain profitability – if you have a hard time thinking about that – because you’re so dim – then imagine the likes of Taylor Swift, Elton John and the likes. They’re not your busker at a train station, obviously. Now think some more. I’m not here to do your thinking for you!
- Making decision that capture situations which create profitability. Think Ray Dalio (or not).
- Creating new things that have long term value – that sell well. Yes that could be people who make music but also think of inventors, scientists who create new technology.
- Repeat sales – part of all of the above – think of authors as well. [Calm down – I’m not writing the book with money in mind.] Sales can include small profits over large numbers e.g. some who make money via YouTube or Patreon etc.
Don’t expect me to be telling you who reads this, what to do in any of the above. I don’t know you!
Stupid: Are you a financial expert?
CW: No. Are you?
Stupid: No. But you’re giving everybody advice on how to make more money.
CW: Rubbish. I’m making notes which I am sharing. Some of it is my opinion, which is different to ‘advice’.
Stupid: What’s the difference?
CW: Advice can include opinion. However, advice is usually given in the context of some duty to provide opinion to another (person or organisation). “The Sun will rise in the West tomorrow morning.” – is not advice. “There are good ways of making money – here are some…” – is opinion. But if someone asked an me for opinions on how to make money, then statements which follow could be construed as advice.
Stupid: I don’t get it.
CW: Okay. If I said “fluoxetine is a good antidepressant, when used for certain types of depression.” – in the context of writing a blog, that is a statement of opinion. If someone asked me “Give me an example of a good antidepressant?“, in a clinical consultation then the same statement would be perceived as advice. That’s because I have a duty to them.
CW: I can’t possibly know the individuals or the numbers of people who may read by blog on such a topic. It would be ridiculous to assume that I have a duty to each of those unknown numbers of individuals. But in a clinical context with one patient, I know exactly my duty.
Stupid: Oh – I see.
CW: Wat!! Incredible.
CW: Not to worry – you served your purpose. Off you pop.
Somebody is about to ask me, “How will I know my creation will sell?” You don’t. You won’t. You can’t predict the future. Not every song sells well – jeez it’s so obvious – but music celebs still make money. Obviously they make several songs or music and a few of those sell very well.
- Real Estate Investments: Real estate can provide a reliable source of passive income. Rental properties, for example, can generate consistent cash flow while also increasing in value over time. Real estate investment trusts (REITs) are also a good option for passive income as they invest in a portfolio of properties.
- Dividend Investing: Dividend investing involves investing in stocks that pay out regular dividends to shareholders. This can be a great way to generate passive income as the stocks can appreciate over time and the dividend payments can provide a steady income stream.
- Peer-to-Peer Lending: Peer-to-peer lending platforms allow you to lend money to individuals or businesses in exchange for interest payments. The interest payments can provide a passive income stream while also diversifying your investment portfolio.
- Creating Digital Products: Creating digital products such as ebooks, courses, and software can be a great way to generate passive income. Once the product is created, it can be sold multiple times without any additional effort.
- Affiliate Marketing: Affiliate marketing involves promoting other people’s products and earning a commission on each sale. This can be a good way to generate passive income as you can promote products through a blog or social media without having to handle the product or deal with customer service.
- Renting Out Your Assets: You can also generate passive income by renting out assets such as your car, house, or storage space. This can be done through platforms like Airbnb, Turo, or Rent the Runway.
And the additional wise advice from the AI is (duhhh): “Remember, creating passive income requires effort and time upfront, but the rewards can be significant in the long run.” That coheres at the outset where top earners have to exert a lot of effort to get going and keep it going.
Well ChatGPT is no authority over me. I had broader other ideas which encompass the above.
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