Enough Money

There are two ways to make enough money to do the things that you want to do:

• Make more money
• Spend less money

A lot of people choose to make more money, which is fine if you plan on achieving it by increasing your Passive Income. The problem is, that people choose to make more money by trying to increasing their Active Income. This is a vicious circle.

Active Income requires a linear investment of time. If you want to make more money, you need to spend more time, and when you stop spending time towards making money, well, you don't make any. The more time you put in, the more stressed you get. The more stressed you get, the more money you need to spend to deal with it and maintain your new lifestyle, which in turn leaves you with not enough money. Sound familiar?

The approach of spending less money is chosen by very few people and is an option that almost no one thinks about. It forces you to really think about what you want to do with your life and choose a lifestyle that will allow you to accomplish that.

Passive Income

Financial independence is not about having more money, it's about having more time. More time to do the things that you want to do.

You only get a finite amount of time to spend in this life and with each passing moment, your time runs out. When you understand this fact of life, you realize that time is actually more valuable than money.

So, what do you want to do with your time?

I for one, want to do many things and travel the world, and one way to achieve this time and location independence would be with Passive Income, an income received on a regular basis, with little or no effort required to maintain it, i.e., money received with a non-linear investment of time.

Passive Income is the opposite of Active Income, an income that is received with a linear investment of time, e.g., charging by the hour like in consulting, working for a monthly salary or selling stuff (handicraft, food) you create by hand. Since your directly trading time for money, if you stop investing the time, you stop making money.

From the above, it should be obvious that focusing on Passive Income is a better investment of the finite time you have.

Here are some examples of Passive Income generators:

• Information Products (e-books, audio/video tutorials)
• Software Products
• Royalties  (Books, Photographs, Music, Patents)
• Rental property