This is a topic that can get me pretty fired up. The general expectation regarding passive income is that once you’ve generated these passive income streams you can go and sit on a beach and do nothing for the rest of your life.
I don’t believe there is something as real passive income.
I strongly believe that it’s just a trendy catchphrase that people use to sell you stuff. The only way to really make money is by adding value to the world. And the more value you add, the more money you will make.
Now some people will even go so far as to say that they get passive income from the bank by receiving interest. Well, you had to give money to the bank to receive that interest in the first place. The bank actually invests your money and that’s why you receive the interest.
So when you start your business don’t strive towards this illusion of passive income. I’ll often come across people who want to start their Rent to Rent business in some other city or country and want to have it managed and run completely without them from day one. That’s great in theory, but it’s just very unlikely to work if you’re completely out of the picture. It might stand a slightly better chance of succeeding if it Serviced Accommodation, but those management companies charge 20 – 30%, so you’ll need to ensure that your profits are super high.
Another problem this passive income focus has is that people spend too much time thinking of the passive income they’re going to make than actually setting up the proper business foundations. Of course you can hire all kinds of people to do everything for you, but you’re still going to have to do some oversight and have some involvement in that in order to ensure that everything is run properly.
To find out more regarding this topic, watch our short video here.
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