Imagine this: you’re sipping cocktails on the beach on a tropical island while dozens of gorgeous, scantily-clad women or men (take your pick…) fan your body with exotic rattan fans, feed you peeled grapes, and take care of your every whim. Luxury surrounds you…
Meanwhile, your bank account is quietly expanding, day after day, through the “magic” of passive income that comes in from your multiple revenue streams. After reaching over to grab your account statement off of the cocktail table, you smile knowingly and order another drink, thrilled at your enormous account balance. Ahhhh, bliss!
Does this sound familiar? If you’ve been studying how to make and/or manage money for any length of time at all, you’ve probably heard of the term “passive income” and have dreamed of just such a scenario.
So what is passive income, exactly?
According to Wikipedia, it is:
“an income received on a regular basis, with little effort required to maintain it.”
Sounds pretty good, doesn’t it?
This includes things like rental real estate income, royalties from books and music you publish, and income from a business that doesn’t require your direct involvement.
The IRS of course takes some of the fun out of it, narrowing it down much further and excluding some of the above, but for the most part, this idea of “passive income” means “income that you don’t need to work too hard for”…something we would all love!
So what does Kung Fu Girl think of passive income? Is it really possible to achieve?
Well, you’ll be happy to know that I do believe that passive income is eminently achievable…but only after you have first taken a whole lot of non-passive hard-core kung fu action!
The dirty little secret about passive income is that the very best vehicles for achieving passive income require a lot of upfront work. It’s like anything else…the more you put into it upfront, the more you will reap the rewards in the end.
These vehicles include big businesses that you have built and design to no longer need you on a day-to-day business, portfolios of rental real estate properties that you have acquired over the years that are now well-managed by competent and trusted property managers, books and/or song royalties from works that you have patiently dedicated hours to creating, perfecting, marketing, and selling to the marketplace, and investments that you have dedicated the time, effort, and patience required to knowledgeably invest in to produce solid, steady returns.
(This should be starting to sound an awful lot like passive income kung fu…excellence achieved in any skill obtained via hard work and practice!)
Any of the above can be absolutely “passive” (needing not much more than a little ongoing monitoring/management from you), but only after you have put in the kung fu action-taking required to grow them to that state! Businesses, real estate, and investments are like children…they need lots of care and feeding at the onset, but then become more and more “independent” and easier to manage as they grow (as long as you have taught them well and prepared them for “adulthood”!).
This past week at the Underground 8 conference I was lucky to be surrounded by a thriving group of awesome, kick-ass, action-taking entrepreneurs. Most of them have the goal of achieving great wealth and lots of passive income, and many have achieved it already! And the one thing that sets the 7- to 8- figure guys apart from the rest of the bunch is the absolute opposite of “passiveness”….they are taking massive action now to prepare for a better future later.
And from what I can tell, this serves them extremely well! Just look at two of whom I know are among the very best of the best, Matt Smith and Craig Ballantyne…each of them have multiple 7-figure businesses (maybe even 8…) and are smart, savvy, and extremely hard workers. They are patiently working hard and growing their many businesses, and they know that the action they are taking now will reap them huge “passive” rewards in the future.
And the best part is that all of this action-taking now also provides them with a pretty awesome present! They have taken action to design their lives so that they can live exactly as they choose—the very definition of “financial independence”. Neither of them are dependent on anyone other than themselves (the government, an employer, their relatives) to take care of them. They are happy, they are free, and they are living life as they choose. And, one day (if not already!) they will definitely be able to reap the true rewards of real “passive income” (in addition to enjoying a pretty awesome present!).
So yes indeed, passive income is definitely possible, and more importantly, I believe with all my heart that it is not just possible for Matt and Craig or for “Internet Entrepreneurs” or for “Real Estate Tycoons”….it is eminently possible for YOU!
All it takes is the exact opposite of passiveness…..ACTION.
So as Elvis said in his famous song, “a little less conversation, a little more action…”, and if “passive” income is your dream, then ask yourself what you can do today to act toward that goal!
To your kick ass kung fu action-taking success,
— Kung Fu Girl
“One will never get any more than he thinks he can get. You have what it takes. Look back and see your progress—damn the torpedo, full speed ahead!” — Bruce Lee, Wisdom for the Way