The Essence Of Passive Income & How It Changes Everything

The Gift That Keeps On Giving

Even if it is just momentary, the recent price appreciation across the Crypto sector has definitely helped to boost passive earnings. This is a dynamic that will always take place from time to time. If anything, it serves as an indication of what begins to unfold in a bull market. Previously established residual and passive income models become exceptionally powerful during a bull market, especially in relation to their performance during more bearish seasons.

Continuous attention should always be given to the building and establishing of residual and passive income models. If you think that having additional Crypto income during a bear market is beneficial, wait until a bull market kicks in! Income that was more supplementary in nature suddenly becomes a lot more meaningful. If this income is not utilized as disposable income, it can go a long way to assist in the next bear market.

Preserving this capital in the form of stablecoins or cash is probably not a bad idea. Allocation into HBD is another attractive option. This is especially true, as the income is in essence, free money! It’s always great when free money can generate even more free money, right? An additional 20% per year on an asset class (stablecoin) that traditionally doesn’t generate much yield makes holding USD or an equivalent, rather inviting.

Compounding The Machine

This is generally the path taken by average investors who eventually become wealthy investors:

  • Create passive income
  • Utilize that passive income to generate even more passive income

Rinse and repeat

The brilliance of passive income is quite simply this: An initial limited amount of work goes on to produce an unlimited amount of ongoing income. In other words, your work continues to work for you long after the work has been done. Strangely enough, many people are unable to dedicate themselves to this idea. This is largely due to the “starting point” often being rather “insignificant”. However, this is not your typical work dynamic.

It’s not merely a case of a direct reward for your effort, but rather more of a snowball effect, that over time will far outweigh the direct reward. Sadly, the average person is unable to think in this way. Instant gratification is very much the order of the day. Everything that I choose to do, has some level of passive or residual income at work. I am not interested in applying my time to an endeavor that does not continue to reward.

When you begin to calculate the amount of passive income generated over many years, you are simultaneously able to see how productive the allocation of your time to passive income models can be. The super productivity of your initial time spent on a particular passive income idea only becomes truly visible over time. You are now able to understand how a limited amount of work goes on to produce an unlimited amount of growing Income.

Final Thoughts

Building residual and passive income is very much an entrepreneurial endeavor, which is also why certain individuals seem to be rather unfazed by the idea. The employee mindset doesn’t lend itself too well to anything of an entrepreneurial nature. The employee mindset finds the stability of a guaranteed paycheck every month far more attractive. However, with security comes very little growth.

As Dale Carnegie famously said:

The sure-thing boat never gets far from shore.

Leave a Reply

%d bloggers like this: