Lots of people think that the only way to achieve true wealth is through get rich quick schemes. Here is the secret about them: THEY DON’T WORK. Wealth is a slow accumulation barring the occasional lotto winner. What you can do is EARN passive income, and use that money to earn more for you. It starts out with a trickle of passive income, but can turn into an all out tidal wave if you do it correctly!
Many people get units of money (Paychecks, Rent Payments, Etc.) and they immediately allocate it for some sort of spending. What this has effectively done is killed the earning power of that money. Had that money been placed into a CD, a bond, or some other investment vehicle it would have been given an infinite, essentially, earning potential. Your dividends and your interest would then be considered your passive income (because you didn’t have to do anything to earn it).
We did an experiment where we signed up for Hubpages, which is an article writing website, we wrote about 50 articles and have left them. We are now just over a year since starting and about to receive a $100.00 payout from Google Adsense because of it. It didn’t cost us a thing to start the account up, and we have now earned $100.00 of passive income, and will continue to earn that money! We can then take the earnings and invest them.
What this is doing is compounding our passive income. When you can take passive money that you’ve really done nothing to earn, and invest it, you are going to begin to build that tidal wave of money. When you take your passive income and spend it – you’ve made that tidal wave into a bucket of water and dumped it on yourself, and that is not nearly as impressive!