“I don’t want to work 12-hour days. Why would I work all of the time? I want passive income. I want to enjoy life and not work.”
Does this sound familiar?
Ever since the 4-Hour Workweek book came out a few years ago, everyone that read the book has been chasing passive income. I personally enjoyed the book and have it on my desk for reference. I just don’t like the philosophies it has instilled into 20-somethings that are now chasing this passive income dream.
I wanted to take some time today to tell you why you need to stop wasting your time chasing after passive income:
You need to make some money first.
I introduced a freelancing challenge last week for a reason. Before you can make passive income or create a muse, you need to make some money first. This means that you need to increase your active income before you do anything else. If you’re not making any money now as a college student or your income is low in your years post-college, then your primary goal should be to make more money in general.
When starting an online business or getting income from freelancing, you need to work for it first. Once you work for your money, get a service that people care about, and build some savings, then you can worry about passive income.
You won’t get rich quick.
“Our goal is simple: to create an automated vehicle for generating cash without consuming time. That’s it.” — Tim Ferriss
If you’re trying to get rich quick, you should probably stick to trying to win the lottery or to hit it big at the casino. The idea of starting a business that makes thousands of dollars per month passively while you can focus on your sand castle building passion is inherently flawed. When trying to build passive income, you need to immerse yourself in the field.
For example, for you to help someone with freelancing, you have to first become a successful freelancer yourself. You can’t build sand castles all day while you passively grow your freelancing business. I’m not saying it’s impossible. I’m just saying that you won’t get rich quick from chasing passive income. Especially if you’re afraid of a little work.
You need to stop being delusional.
“The week that Tim actually works a four-hour work week will be a cold week in hell. Tim got to where he is by being an insanely hard worker.” — Penelope Trunk, a critic of the 4-Hour Workweek
The other problem with passive income is that there are far too many delusional people. There’s nothing wrong with a little work. You need to stop being delusional about creating $20,000 a month in passive income. You need to make $20 first.
You have to take action.
Instead of chasing perfection, it’s important that you take action. There are many passive income opportunities that don’t require a ton of money to get started. You might have to work a little harder though.
A perfect example here is publish eBooks on your own blog or submitting content to Amazon for Kindle. You have to take action. You have to research a topic, write the book, format it, publish it, and then promote it like crazy,. Action is needed.
At the end of the day I totally support passive income. I’ve already established a few sources of passive income that I’m proud of. I just want to stress that you need to work a little first. When you build yourself up, you can invest your time and money into passive income sources.
Are you chasing passive income blindly?