Warren Buffett once said "if you don't have an income after bed, you're going to work to the death."
Warren Buffett
This makes us wonder if there is any after-bed income, that is, passive income; or what passive income can we have? When you stop working and lie down and have an income, what a happy thing, what a proper sense of security.
Two years ago, the new crown epidemic suddenly struck, which belonged to the "black swan" event, no one expected, during the period of home isolation, work stopped, schools did not attend, and the whole world seemed to press the pause button.
An uninhabited street after the lockdown
If you don't work, your income will plummet, and you won't even have income, but mortgages, car loans, and monthly daily expenses still exist. Many people cut off their supply, the credit report is blacklisted, the house is auctioned off, and so on, a series of vicious circles brought to the family because of the reduction of economic income.
The tide of supply cuts is coming
At that time, many people may be thinking that if I can have some passive income, then I will not be anxious when I encounter such an emergency.
Sometimes crises, while hurtful, also bring warnings. At least from an economic point of view, what I bring to me is to increase passive income, form a moat of family economy, and then encounter unexpected situations and major changes in the family, so as not to crush a family because of economic problems.
So let's first understand what are the classifications of income?
The theory of "four quadrants of income" is proposed in "Rich Dad, Poor Dad". No matter what profession you are engaged in and what source of income you have, you can be summarized in these four quadrants. They are E quadrants, S quadrants, B quadrants, I quadrants.
The first quadrant E refers to the employee, that is, "hit worker", mainly to sell their time and labor in exchange for income, the income is fixed.
The second quadrant S refers to the meaning of self-employed, that is, freelancers, such as: independent designers, self-media, independent vendors, etc., the income may be higher than the first quadrant, but not necessarily stable.
These two quadrants belong to active income, both through time, labor in exchange for income, need to pay active labor. Only when you do it can you earn income, and if you don't do it, you don't have income.
From the third quadrant onwards, the nature of income changes. The third quadrant B refers to entrepreneurs, whose income is mainly business operating profits, dividends, etc. The difference between entrepreneurs and freelancers is that freelancers are more likely to work for themselves, and entrepreneurs will hire people to work for themselves, thus completely liberating their time and labor.
Fourth Quadrant I refers to investors who can make money with money. Warren Buffett is an investor, and Zhang Lei, the founder of domestic Hillhouse, is a well-known investor. If entrepreneurs generate income by letting others work for themselves, investors generate income by working for themselves with money.
Income in the third and fourth quadrants, which we call passive income. You don't have to sell your time and labor to earn income.
The process of pursuing wealth freedom is the process of pursuing passive income. When your passive income is greater than your spending, that's when wealth is free.
Most people may not be able to go to the B quadrant to be entrepreneurs, but we can still try to have a few passive incomes, get more quadrant wealth, get rid of the embarrassment and risk of clocking in at work and taking a dead salary as soon as possible, and turn against the wind.
So, what are the ways for ordinary people to increase passive income?
First, obtain income through creation
Write books, write songs to obtain copyright, royalties. After the author is completed and published and distributed, as long as someone buys a book, buys a CD or does a VIP to read e-books through the network APP platform, or does a VIP to listen to songs, it can continuously bring income to the author. But this kind of threshold seems to be higher, which is a bit difficult for ordinary people.
E-book card
But there are also self-media that everyone can do, published on the corresponding platform, which can bring you traffic, you can receive advertisements or live streams with goods, and some have certain remuneration according to the amount of playback, or produce courseware, sell courses and so on.
Some people feel that this is also a passive income that you spend time and labor to complete. But after the creation is completed, the platform is still showing you, and it will still bring you traffic and income. Take me, a self-media person who writes Buddhists, as an example, I don't update very often, but I still have income every day, and the platform continues to display the articles I wrote before, and every day someone reads them, and there is a corresponding remuneration. After completing the article for several months, there is still money in the account, which is also passive income. As long as you have a certain degree of creativity, you can definitely find your own passive income source, everyone has their own strengths in a certain field, as long as you dare to do it, and insist, you will be able to make money in some way.
Second, use money to make money
There are many low thresholds for ordinary people to make money with money, such as bonds, funds, and stocks. However, I don't recommend buying stocks for novices, it's too risky. But funds, bonds do have a low buying threshold, as long as you don't trade frequently, be patient, be a friend of time, and a long-term investment fund, there is a high probability that you can outperform the market. The author of a book that had a great influence on me, "Don't Go to Work, Have Money", was a long-term investment fund, and then relied on the annual fund dividend as his passive income, and the husband and wife resigned to travel around the world.
Like I invested in a beauty salon, only accounted for a small share, at that time felt that it was convenient to do their own beauty projects to discount, but now there are monthly dividends, but also to earn some pocket money for themselves, which is also passive income.
Finally, the favorite passive income of the Chinese people should be to buy a house. House rental, there is rental income, while the rise in the house has also increased their own assets, although now advocate housing not speculation, but I still feel that the investment in high-quality assets in passive income is a very important way to increase passive income.
Each of us has only 24 hours a day, and the time we rely on active income, that is, the time to work and work, is an average of more than 9 hours a day; but we always have to sleep and rest. Add a few passive incomes, let them make money for you 24 hours a day, even if it is not much at first, but as long as you act, every step you take counts, the journey of a thousand miles begins with a single step, and you are one step closer to the freedom of wealth.
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