The Concept of Passive Income
Fun fact, I wouldn’t click on a link with such a title. Another fun fact, fun facts rarely have anything fun to do with them. And are probably not always facts. I am going to blame this on the pressure that is ice breakers, because life’s too tough to be taking responsibility for things that are probably your fault.
I am guessing that it’s no coincidence that I learnt the fun facts phrase in adulthood, because as a child there is no need to conjure up fun facts when you are busy having actual fun.
Robert Kiyosaki believes that our financial lives are run by two things; fear and desire. The fear of not having money and not being able to pay our bills makes us look for jobs. We get the job then we start thinking about all the cool things that we can buy, cars, shoes, clothes, you name it. And we buy them. So the fear of not having money kicks in again, and a pattern is created. We work, we get money, we spend it, and then we are back to square one – every month. This is called a rat race.
Passive income is revenue that you receive, over time without actively working for it. For passive income to become a reality, the investment has to be a success/profitable. Examples of sources of passive income include real estate, investment in bonds, buying shares in companies, publishing books, acting, among others.
I am currently living a rat race life, living hand to mouth. Get some money, spend that money, and I am not even spending weekends on islands in Zanzibar. The money I have is barely enough to meet my basic needs, and I shudder at the thought of this being my forever. I shudder at the thought of working my entire life. I shudder at the thought of not leaving anything for my future god children. I shudder at the thought of going to my grave with a few shillings to my name. Heck, if I died tonight, I wouldn’t have enough money to cover my own funeral costs. And that is a downright shame. I think that that’s the equivalent of going to the bar without money for drinks. It shouldn’t be acceptable.
After thinking long and hard, I have decided that this can’t be my life. It’s not really working for me.
In case anyone has some ideas of sources of passive income, I gladly welcome them. Let’s not die broke and poor, if we can avoid it.