Real life experiences are usually the best way to learn in life. How many times have you listened to the advice of someone but never actually applied that advice only later to realize that listening would have served you better. Before I started on this journey of wealth building more than seven years ago, passive income was very exciting and interesting. Fast forward to 2015, I was on to acquiring my first rental property and voila passive income was a real thing!
Not so fast! I quickly learned that passive income did not exist in the sense of being absolutely free from work through my experiences. Passive income is actually a lot of work but it is not consistent day-to-day work like most people perform when they go to work daily. It does not matter if you are doing real estate, multi-level marketing or even investing in dividend paying stocks it will all require upkeep to maintain the proceeds that are coming in.
The focus should shift to maintenance and/or management of your cash cow. Avoid thinking about an endeavor as being passive. Instead focus on the amount of maintenance your project requires. Real estate requires maintenance and management of tenants, multi-level marketing requires steady recruiting of new members and mentorship of current members of your organization, and stocks involve constant research and market education. It all boils down to the amount of work your duties ask of you either daily, weekly or monthly but they are far from passive.
The good news is that each type of widely regarded “passive” income generators can afford one residual income. Residual income is money that reoccurs or comes at regular intervals. This should be the goal versus passive income because if you're anything like me, the term passive income may begin to sound like a big lie.