There Is No Such Thing as Passive Income
Summary
- I once considered getting into real estate because a friend said it was passive income.
- When I visited her real estate team, I realized the team had 40 people. This made me question the idea of it being passive.
- Even with a management company, they were still actively buying deals and traveling, which didn't seem passive at all.
- Managing a team of 40 is a big responsibility and requires work, contrary to the idea of passive income.
- You have to work in some capacity if you want to make money, even in ventures that seem passive.
Video
How To Take Action
I would suggest implementing a clear understanding of what passive income means before diving into any business venture. Often, what seems passive still requires active involvement, like the real estate example. So, start by researching how involved you need to be in any investment or business setup.
A good way of doing this is by talking to others who are in the field you’re interested in; ask them about the daily tasks and responsibilities. This will set realistic expectations of the work required.
Another low-cost strategy is to improve your management skills. Even small teams need oversight, and strong management can save you time and stress. You can find free online resources or books from the library to enhance these skills.
Also, reflect on your current resources—like time, energy, and finances—to decide if you're ready to take on more work, even if it’s labeled "passive." This self-assessment will help you make better choices about where to commit.
Lastly, stay open to adapting your plans. If something requires more work than expected, think about how you can re-structure your approach or delegate tasks. Flexibility can help you manage responsibilities more effectively while pursuing growth.
