In today’s world, majority of us are spending more than 50% of our time on work. Why? We need the income to pay our monthly bills and expenses.
The key issue here is that we all need income to survive. However, most of us end up being stuck in our work, busy working to get more and more income. To get out from this, we need to understand how we can get income without working.
First of all, you need to be aware that there are 3 sustainable ways to earn money. The first way is to exchange time for money. In this case we are either working for others or become a self-employed. Through this way, the longer we work, the more money we get. The second way is we build a business. Business owners provide products, services or platform to help others to solve the public’s problems. Hence, they are compensated for the solutions provided. The last way to earn income is investment.
You will notice the first way is an active way. You don’t work, you don’t get the money. If you don’t want to get stuck in your job, you got to find ways to diversify your income sources. The longer you wait to diversify, the harder it becomes.
Many people are now looking to build business believing that it can generate huge income / fortune. Thanks to the multi-billionaires’ stories that many successful business owners earn billions. This motivates people to start their own business thinking that they can get out from the rat race by building a business.
It is true that this might be a workable solution. However, statistic shows that 45% of businesses fail within the first 5 years. This statistic shows that only very low percentage of successful businesses. Majority are struggling to survive. It takes effort to make a business successful. If the business does not provide great solution, no one will pay money for the service or the product. Hence, this way of earning money can be quite active as well if the business owner does not think how to systemize the business. At the end, even if the business is earning huge money, the business owners might be stuck in work as well if he does not plan well.
The last way, investment, is the obvious passive way of earning money. Passive here doesn’t mean it doesn’t require effort. It requires some skills to select the right investment in order to make money. For example, one wants to invest in property, he should survey the location, inspect the unit before making decision. This principle applies to all types of investments including stock investments. Many people are thinking that stock tips can help them to make money. If it does, many people would have been rich. It doesn’t work that way. It requires some kinds of research and understanding of the investment too. Buying based on tips are dangerous and it has no difference from gambling.
So, in conclusion, in order to escape from rat race, you need to diversify your sources of incomes and have more passive incomes. Let’s build a passive business or venture into investments to get your passive income and reduce your reliance on active income. Only through these, you can slowly stop working for income. Watch the Youtube video here on this topic.
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