Here’s the challenge when looking to make an extra income. The way most people earn a living is to trade their time for money; whether you stack shelves in a store or perform open heart surgery – you are swapping your time for money.
The amount you are able to trade your time for is contingent on the value you provide; an attorney will often charge more for their unit of time than a janitor – because the service they provide has a higher perceived value. That doesn’t mean they have more value as a human – it just means they are engaged in a more valuable task.
The challenge, even if you are a highly paid attorney, is that if you want to earn an extra income there are only so many hours in the week that you can trade your time for money – and there is a ceiling people are willing to pay. Similarly, presuming you value your life beyond work – you need time to enjoy life. Isn’t it sad how many people observe their children growing up before them with no time to fully engage in this beautiful journey?
If you want to create an extra income without having to swap more of your precious time for money… the answer is to leverage assets.
Think of it this way. An author writes a book and makes $1 per book sale. They may have spent a significant amount of time writing that book, but once it’s published, it’s done – they are no longer swapping their time for money – they have an asset they can leverage time and time again without having to trade time for money.
Whether the book goes on to sell 100 copies or 100,000 – the income derived from the initial effort required to create this asset will be generated without them having to be physically present and swapping their time for money; hypothetically, they could be making money in their sleep – particularly if the book were to be selling internationally on a platform such as Amazon. Indeed, they could be lying on a beach in Hawaii!
A further analogy is that of a musician; they put a lot of effort into creating an asset in the form of a song that is then leveraged time and time again. If an advertiser, for example, wants to use their song they would have to licence the asset in order to use it for their advert – meaning, in broad terms, that each time the advert aired the artist that created the song would be paid!
The film “About A Boy” shows the power of this passive income. Hugh Grant’s character lives on the royalties of his father’s one hit wonder that continue to generate income in perpetuity. This is where most people make the mistake; they are trading their time for money they receive instantly… rather than building assets that generate long-standing income in the medium to long term. This is the core difference in the mindset between an employee or small business owner vs. an investor or big business owner.
When you shift your mindset from that of trading time for money, and instead, focus on building assets – you start walking the path that leads toward financial freedom. What is financial freedom? Having both the time and money to live with freedom. The path may not be all sunshine and rainbows, indeed, it might be a long hard slog that in the first few years isn’t particularly rewarding, in financial terms – but people that are investing in their future in this way understand they are trading short term pain for long term gain!
NEED MONEY TO MAKE MONEY?
You’ve probably heard the myth that you ‘need money to make money’ particularly when it comes to investing or creating assets. If you plan to buy a few houses in order to generate rental income from tenants, then yes, that would probably be true – but thanks to the internet, today, someone with hardly any money, credit rating, or access to resources can become financially free. Afterall, how much money did JK Rowling have when she wrote the first Harry Potter book?
If you do have some capital behind you, then one of the quickest ways to make money is via the stock market. Admittedly, it can be somewhat risky, but there are a number of applications and platforms (such as AlgoTerminal) that can help mitigate this risk. The most important thing to consider with investing is that it can be treated as a lottery, which is totally random and blind – or it can be treated more as a science or art form. The key point is that you need to gain the correct foundational knowledge and strategic insight to “win” at the stock market.
However, the thing with the stock market is that you do need some money behind you in order to create more money. If you’re in a position where you’re starting from scratch, then today, with the power of content marketing… anybody can build a substantial income from creating online courses, e-books and affiliate advertising at barely any start-up cost.
CONTENT MARKETING TIPS
STEP ONE: Create Content and Build Authority Within Your Niche
Creating content and growing your blog can be quite a challenge but the key principle is to get started and keep at it. Try to post as regularly as possible and set yourself a goal of 1-3 posts each week.
STEP TWO: Get Noticed by Google
Search Engine Optimization (SEO) is both an art and a science in a very competitive landscape. The challenge is there’s so much content now that you need to understand SEO in order to get noticed. Here are seven to help make your website stand out; both to Google’s robots and humans alike.
STEP THREE: Create a Product
Having a blog that gets noticed is the foundation, but it would be like having a shop on the high street with no products to offer unless you create something that people can purchase – whether this is a course, an eBook or physical products.
STEP FOUR: Leverage Affiliate Opportunities
You don’t have to do it all yourself. Plenty of people create successful blogs and recommending products that other people have created. ClickBank offers a good example of opportunities to earn affiliate revenue.
STEP FIVE: Develop Depth to Your Offerings
Whilst you might begin with a simple video course teaching yoga, once you have an interested audience you should look to diversify and deepen your offerings; as an example, by hosting a yoga retreat.