Sample these statistics about job –
- According to Gallup’s 142-country study 87% of employees worldwide either do not enjoy job or are actively disengage at work
- More than two fifths of employers have seen increase in workers reporting conditions such as depression or anxiety, according to CIPD research.
- 2 million people quit jobs every month in the US.
- 40% of employees who receive poor job training leave their positions within the first year.
- By 2019, more than 212 million people will be out of work, up from the current 201 million, according to the World Employment and Social Outlook.
Image courtesy: Gallup
Lack of creative freedom, no control over one’s time, lack of higher earning potential, office politics, lack of work challenges, fear of being obsolete, a bad boss, working overtime, long commute, work stress, fire-at-will approach, no work-life balance, bad work culture, lack of recognition at work are some of the many issues faced by people at work today.
Raise your hand if you recognize yourself with at least one of the situations given above.
This post could be the most useful piece of information you could use in your journey to financial freedom.
For most people it might have looked great to take up their first job – but after a decade or so with priorities changing at work place and at home, being in job may prove to be a problem with no immediate solution at hand.
For many there are two ways of dealing with the situation of being at a job they don’t like.
- be philosophical about it, accept it and chug along.
- take charge of the situation, quit the job and dive headlong into something they enjoy doing and build a business around it
While second one may appear risky, the risk is higher with the first approach.
If they put up with the job long enough the issue may manifest in one or the other way (bad health, bad relationships etc) in that they may burn out or even have a breakdown.
There is a third approach.
Before looking into the third approach there is something you need to familiarize yourself with.
Heard of Cashflow Quadrant?
This concept was created by Robert Kiyosaki in his path-breaking work ‘Rich Dad, Poor Dad’
This is a highly recommended read (or listen, if you want to go for the audiobook from Amazon Audible). I’ll try to give a gist of it below.
According to it we all fall into one of the four quandrants defined below.
Robert Kiyosaki’s Cashflow Quadrant
- Majority of people fall into top left quadrant – Employee
- A good number of people fall into bottom left quadrant – Self Employed
- A much smaller number of people find themselves in top right quadrant – Business Owner
- And a very very small group of, rather wealthy people are found into bottom right quadrant – Investor
The two quadrants on the left give you active income (if you stop work, money stops), and two on the right give you passive income (less or zero work involved on a day-to-day basis).
The idea is to get into quadrants on the right hand side – the final destination being the bottom right, Investor quadrant.
Usual path for people in a job is to move into Self-employed, to Business owner, to eventually Investor quadrant. This is shown by the solid arrows in the image above. That is, E -> S -> B -> I
But it is highly possible to move directly into top left (Employee) into top right (Business Owner) quadrant (indicated as Best Path in the image). That is, E -> B -> I
In other words, instead of working for others and trading your time for money, you’ll be working on your business by leveraging other people’s time and systems.
The core purpose for this blog (I call ‘MyPIE’) is to help you do just this – move from Employee into Business Owner quadrant to earn steady stream of passive income and avoid the longer path.
“Shiv, did you say, passive income?”
Yes. Passive Income is a consistent income you get from a source that you have built with some up-front effort, and then with much less effort on an ongoing basis.
In other words, if you are generating income without trading your time for money, you are generating passive income.
Here’s a way to listen to ‘Rich Dad Poor Dad’ for Free!
Step 1: Click on the image below and sign up for free Audible account
When you do this you get a 30-day free access to over 180,000 audiobooks. If you continue after 1 month you get 1 book a month at $14.95. But there is no obligation, you can cancel your Audible account before your 30 days trial period anytime. And 30 days should be much more than enough a time to go over ‘Rich Dad Poor Dad’ audio book.
Step 2: Click on this audiobook link or just search for ‘Rich Dad’s Cashflow Quadrant’ in the search bar
Get a cup of your fav drink, stretch your legs and start listening to it!
Since you get 2 free audiobooks, may I also recommend Tim Ferriss’s #1 Best Seller ‘The 4-Hour Workweek: Escape 9-5, Live Anywhere, and Join the New Rich’ ?
This is a must-read book for every online entrepreneur looking to earn passive income by spending least amount of time!
Each of these have a Kindle book as well, if you are enjoy reading ebooks (Kindle books can be read on browser, or PC/Mac/Smartphone/Tablets natively by using Amazon’s free Kindle app).
Here’s how you do it –
Step 1: Click this link (opens in new window) and either enter your smart phone number, or directly download the relevant Kindle reader app.
Step 2: Click here for Rich Dad’s Cashflow Quadrant: Rich Dad’s Guide To Financial Freedom Kindle book
Okay, now that we’ve made this point clear let us look at the third approach for the problem faced by people working in a job.
The Third Approach — Make Money Online PASSIVELY
Although I personally took the second approach stated above, I think that this third approach is the least risky one.
This approach, knowing that you are working on to become financially free, gives you renowned energy and positive frame of mind at day-job, and helps you build a steady passive income in the long run.
The third approach is therefore, to build your own passive income generating business on the sides, while still working at your job.
Take concrete focused action daily, even if it is 30-60mins, and you will be carving your path to financial freedom in baby steps.
Imagine that you invested in a commercial property that pays you $3K rent every month. You spent time and energy upfront in choosing the right property but there is no or very less work to put in on an ongoing basis and the money will keep coming into your bank account.
While this is one type of passive income, the downside is that at you had to invest a sizeable chunk of money to purchase that commercial property.
There is a goldmine of passive income models that many people, even people working in the high-tech jobs, miss out.
Internet provides you tons of opportunities for generating passive income.
Avoid these traps
While there is practically no entry-barrier to creating your own passive income generating online business, you need to guard yourself against two traps –
1. Information overload
The last time I googled for ‘making money online’ Google showed 202 million pages and told me this phrase is searched about 135,000 times a month. If you were to bid for this keyword to place an adwords ad you would pay $2.43 per click!
This means way too many people are searching for a means of earning money online and there sooooooo.. (204 million o’s) many pages telling you how to do it.
This is called Information Overload.
You could start digging and find yourself red-eyed after several hours of web surfing and still no clarity on how to go about it.
2. Shiny Objects
You take up something that sounds like a suitable option for you, and soon enough you’ll come across another one that appears to be better. You leave what you are doing and jump to the next one. The another one.
These shiny objects can pose biggest threat to your online success.
While we’ll talk more about these in the blog posts, please keep in mind these two.
One way to avoid this is to pick up one passive income model from someone who has got results, and stick with it till you master it and get great results.
Creating a business using a passive income generating online business model is one of the easiest ways to get into Robert Kiyosaki’s third quadrant directly. However, this takes some serious dedication and systematic effort to replicate a proven business model and to make money online.
If you are ready to spend an hour or so on a daily basis to build your business, you will soon start seeing results. If you need any help please do not hesitate to reach out to me.
To your success,
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