Let me tell you how to actually be making money whilst you are sleeping as it is definitely no secret how Warren Buffet does this. He invests his money in the stock market!
If you have not started yet, it doesn’t matter, the key thing as with everything is to actually get started! There are so many “smart” people out there who all have this knowledge, still they don’t actually use it to make a difference in their lives! It doesn’t matter if you are smart or not (though I would argue we all are, it just depends on how much effort we have put into something). Rich or poor, we all have to start from where we currently stand.
Passive Income is the name of the game!
As Mr Buffett says, if you don’t know how to be making money whilst you are asleep, there is a great chance you will have to work for money all your life. Which basically means selling your time to get money. Most of us would like to have money coming in even if we are not trading our time for it. At least that is what I want for all of my followers, yes, YOU! Because when you area making money that way, you can spend your time just the way you want!
Passive income just means that you are making money without doing anything! It can be a variety of things but the simplest and least risky way is to just have a savings account which pays interest (though rates are super low at this point in time). The next most common alternative is to invest in mutual funds (a basket of stocks), higher risk but over time most likely higher returns. These alternatives are available to everyone and you don’t have to be a genius to get started or to become rich! There are no guarantees of riches but if you never start, you are guaranteed to never get there.
I might have used some financial jargon here which is new to you BUT, I would argue that all rich people understand the language of money and use that knowledge to take action and so should you! Therefore I have devoted an area for The Money Language in our Wealth Section so check it out if you want to know more.
Savings and in particular investing is part of all rich people’s strategies as they want multiple sources of income! They might have an adviser who assists them but they still understand the basics of finance and investments and often they know quite a bit as they want to make sure they take great care of their wealth. If you feel lost, I recommend you start from the beginning of our Wealth Section. When you have gone through all the sessions, you will most likely know more about savings and investing than 95% of the population!
Remember that money will be part of your life, all your life. It’s just like with any skill, the sooner you learn how to use the tools and actually start using them, the better you will become! I would say it’s like learning a language, harder in the beginning but when you know the basics you can easily add new stuff. The exact same thing is true for the investment world and if you want to never experience money problems (or stressing about money), this is something you have to do both for your own sake and for your family!
By going through our sessions on wealth, you will learn everything from scratch and ultimately you will have a money-machine making money for you whilst sleeping, just like Warren Buffett! By consistently saving and investing, you nurture your wealth and it will (over time) grow for you.
You will have to figure out for yourself how you would want to start getting a passive income but to get some inspiration, have a look at my post on Passive Income and Why you Must care.
Want to get going right away?
I recommend that you learn the basics first because then you will for sure make the most of you money. Many people unfortunately give away a big chunk of their money without knowing! This might be the case for you too and that is why I am so adamant you learn the ropes before you dive in! Want to know what I am talking about, read this post Are You giving away half your pension (in investment fees)?
If you really feel that you want to do something right now to start producing passive income for you. I would recommend that you start looking at savings account with decent interest, corporate bonds and potentially also equities that pay dividends. This should be set up so that it happens automatically for you and we have a couple of sessions on how anyone can do that. Start by checking out our posts Definition of Wealth – what does it mean to you? Then The Wealth Pyramid and The Bucket System – Automating your finances. Of course you have to make sure you understand the risks involved in any of your investments but if you start out carefully and understand what you are doing, you can start generating a cash-flow rather instantly.
I would love for you to have a money-machine working for you 24/7 already but you can only start where you are. Your visions and dreams should be very clear to you and if you know exactly WHY you want to reach them, I am sure you have the motivation and can come up with numerous ways of making money by creating passive income streams.
It is more about a way of thinking than anything else. Everything you do for money should be thought of “how can you make this activity generate a passive income, not only an income where I trade my time for it?”. When you do that and start creating these setups, you will feel great and you will soon realize that you have time to do what you want as money is coming your way regardless of how you spend your time. That is a life on YOUR terms!
Unless you really want to work until you die, I recommend you to take action now so that you can start a new chapter in your life, one including massive passive income!
Actions to take:
- Make sure you have a great foundation to stand on – go through our Wealth Section
- Create your visions and goals so that you know why you are doing it
- Read my post on How to always have enough money
- Read my post on Are you giving away half your pension (in investment fees)?