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Categories: Millionaire Mind

I guess not many of you will be a total stranger of what passive income is, and you may have seen or heard it from book, seminar, CD, DVD, shows, blogs, etc…that you need passive income to financial freedom. However, how did you define passive income? Does it mean getting money to your pocket 100% passive without you doing any work? According to Wikipedia, the definition of passive income is shown below:

Passive income is an income received on a regular basis, with little effort required to maintain it!

Do you agree? I don’t know about you but I certainly agree on the definition of passive income, especially “the part with little effort required to maintain“. Earning passive income does not mean you will get money to your bank account consistently without putting any work. The best thing about passive income is it is a leveraged income, which only required you to maintain with little effort.

Passive Income

Passive Income – How Much Effort Do You Put In To Maintain?

There is no free lunch in the world. Even if there is (such as in some temple), you will still need to travel to be there to have the lunch. Similarly, various kinds of passive income instruments will require effort to different extent to maintain. Ultimately, it is up to you to decide if you love what you are doing.

Stocks / Forex Investment

I know some people do long term investment regularly with stocks or even forex while they are getting a paycheck every month. After 10-20 years, they have increased their net worth by many times via dividend, bonus share and capital appreciation. Some of them receive 6 figure income yearly from dividend only.

You might be wondering that’s excellent and stock / forex investing might be the best passive income that you should pursue. Having said that, they have also done their due diligence before they invest in the market. They researched the stocks, did technical analysis, monitor the market trend, etc…These are the effort they put in in order to get the passive income they are after.

Properties Investment

Some people use property investment as a vehicle for their passive income sources. While they need to fork out a huge chunk of down payment, rental yield and / or capital appreciation of the property is the passive income generated. What did they do to achieve that? They will need to do their research before buying the property, which takes a lot of time and effort. They also need to put in effort to collect the rent and maintain the property to sustain the passive income source.

Royalty from Book

Some of the best selling authors are making their massive passive income from their books selling in the book shops. Before they become best selling authors, they have spent a great deal of time and effort to publish and market their books before the passive income kicks in.

Franchise Business

Franchise business is another red hot passive income instruments that some people would love to pursue if they have enough capital. The recipe and the business models are provided and all you need to do is to get enough right people to run the business for you.

Internet Business

There are different types of business models in the internet business industry. Some might take longer and need greater effort than the others. Similarly, the passive income generated from each business model varies as well.

Traditional Offline Business

No matter who you are, there is always successful example of running a brick and mortal business, regardless of your education levels. The greatest assets of a traditional offline business is either the products/ service and the people. Without the right people, the bosses will never get passive income and they will still need to do most of the thing themselves.

There are literally a few dozens passive income instruments and opportunities that can generate passive income for you to different levels. Some might require more capital outlays and effort than others. So you might wonder why so many people fail in business or investment?

In order to generate passive income, we will need to pick at least one instrument to help us. There are 3 phases to the road of success with the chosen instrument to generate passive income:

1. Learning

Before we delve into that, we need the knowledge and acquire the skill first. Without the proper skill, getting involved in some passive income instruments might be risky because you need to know what you are doing and the risk so that you can deal with it. There are different ways to pick up the skill, i.e. from offline seminar, online courses, books, etc…

In this phase, some people already quit or still on the fence to source for the “best” course. Only the people who completed phase 1 will get to next phase.

2. Practising

After you have acquired the skillset, you will need to practise in order to master the skill. Do not expect that you can generate tremendous passive income with the skillset you just learnt. It takes time to practise and master a skillset. There might be a steep learning and practising period of 6 months to a year until you start to master your skillset.

This is the phase where a lot of people quit because you really need to be determined, patient and persistent to practise to master a skillset. If you can endure and move on to the next phase, that is where you will see some success.

3. Mastering

You know the proper way to implement your skillset to earn passive income for you. The more you do, the better you are doing and the more passive income you can generate. You will be able to optimize whatever you are doing and improve the efficiency.

Unfortunately, not many people reach this phase because they simply quit in Phase 1 and Phase 2. That’s why we see a lot of failure in every business.

Your Voice

Generate passive income require you to master the right skillset and mindset, no matter what passive income instrument you choose. Leave me a comment below and let me know what you think about passive income and ways to generate passive income.

To Your Success,
Ming Jong Tey

10 Responses to “Generate Passive Income – Are You Doing It The Right Way?”
Read them below or add one

  1. James says:

    The 2 most powerful things in the world…..the internet & the computer. Couple them together and what have you got? The opportunity to be creative, artistic, knowledgeable, caring, sharing…….I could go on. And at the same time attract in income – where else can you find such a level playing field? My time spent learning these techniques is well spent! Thank you Ming for your inspiration. To success……

  2. Elena Anne says:

    Another plus to having a passive income: freedom. If all you have to do is do a little dance every once in a while for someone who pays you big bucko’s, then you really don’t have any reason not to do what ever you want, where ever you want to. Amazing thing, it is.
    Something that sucks with being an author, is if you get writers block, then you’re just stuck. But then when you finish, then you’re pretty much making big mulah :D
    Thanks for posting

  3. You are right, My Friend..
    You have motivated me alot by your post and Free Ousome book. I am still newbie and in learning phase. Basically In our country , we have not quality good access to education. thatswhy we cannot get the right path. I have done course but he only teach me little theory like a vague cloud but not tell how to start and how to do things really happen.

    I would like to ask you, How should we know whatever techinques we are using is exactly working or not?
    Muhammad Tauseef recently posted..How to Make Money Online

    • Ming Jong says:

      @Muhammad Tauseef: Welcomed Muhammad. I see life is a learning journey no matter what phase are you in, which is a great thing (there is always something to learn)! During my education, I was only taught everything about technical, knowledge and not much about how to adapt into the society and thrive in anything you do. Even in the University, I don’t get any exposure in terms of passive income…

      I think it is helpful for me to work for at least a few years and can project myself in 5 or 10 years time. So, that was the time that I start read lots of books, attending courses, etc…

      That’s a valid and important question. And that’s where critical thinking comes in. If you are a complete newbie, anything new is knowledge to you. You will just have to absorb and test it out yourself. Another quicker way is to find out what other people are doing and why they are doing their way so you might be able to cut short your way to success.

      Only after you have accumulated the fundamental knowledge, you have the ability to do critical thinking to judge if the techniques make sense. When you experience along the way, you need to think if you need to tweak the techniques or improve it. You will know if the technique is working by seeing the result. If not, then why? This is the question you need to find out. Discussing on the forum, asking (like you are doing), seek for support, etc…will help to lead you to the right direction. Hope this help.
      Ming Jong recently posted..Link Wheel Strategy That Works

  4. Awesome point. I’ve never thought about it like that, that we spend at least 4 years studying just to get a full time job and earn x amount of money and yet expect to replace our full time income and earn x amount of money online after blogging for 4 weeks!!! That right there is a lot of food for thought especially for those who are about to give up on making money online passively or actively.
    Miriam @ Christian Stress Management recently posted..How to Fight for your Job with Bible Verses

  5. MIng,

    You are so right. There are many ways to begin to generate passive income. OF course none of them are “easy” to get into.

    As you pointed out many people may start step 1. or even get to step 2. but never really master the system.

    It takes time and patience and large amount of time and enery invested to where you can earn a -realiable- passive income/
    Steve@Affiliate Marketing Tips recently posted..10 Ways to Use Google Analytics to Increase Web Traffic

    • Ming Jong says:

      @Steve@Affiliate Marketing Tips: Absolutely Steve. I have seen a lot of people do not really want to believe in themselves that they can pick up another skill other than their current profession. Or, they just don’t believe in the skillset (another scam to them).

      These are invaluable skillset that can help people to earn a living with passive income so it is not uncommon for people to invest time and effort to master the skill. Typically, it is common for people studying 4 years to get a degree take at least 1-2 years working experience to really get used to their profession and can practise with minor supervision.

      Just think about the no of years that we study just to prepare to get a job. Sometimes, I am quite surprise that what makes people think they can earn significant passive income after the 3 days course or a $37 online course? Something to ponder…
      Ming Jong recently posted..Increase Traffic Via Video Marketing

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