Whenever possible try to earn money whether you are working or not. How is this possible?
Let me explain.
When you work at a job you earn what is called active income. You only get paid when you show up physically. When you fall sick and can’t work you are not paid. The same thing applies if you are self-employed. So how can we earn all the time whether it’s raining or not?
The trick is to build what we shall call passive income. This is money you earn without too much active participation. It’s money you earn while sleeping. But how is this possible?
You see money is a very loyal and obedient servant. When you allow it to work for you it can generate a lot of passive income. Really?
Yes. For example, I recently bought a 20 year treasury bond. This bond is going to pay me passive income for the next 20 years without any additional effort on my part. Whether it rains or shines, I will get paid. So you see, the idea is to use your active income to build passive income. And when your passive income can pay all your bills you are financially independent and no longer need to work so hard for money.
The truly wealthy people make most of their cash from passive income. They own businesses, property, bonds, commodities, etc. Their income is not tied to their labour and as such, they earn much more than the average person.
And the beauty is everyone can build a portfolio of passive income through hard work and persistence.