The importance of Passive Income

Aside

Passive income is such as defined by Wikipedia is “an income received on a regular basis, with little effort required to maintain it”.

ImageThis is my definition of passive income; passive income is something that can enable you to cover your basic living expenses, regardless of who you are, where you stay and the likes. It is important for us to have or build towards a source of passive income, it doesn’t necessarily require a lot of money, but it does however require a lot of your time and effort in the initial stages. Coming to think about it, I have been bought up in such an environment. Although my parents and my family have no clue about what passive income is, that is what they have been building towards all their lives and successfully done!

ImageI’m proud of my dad for enabling me to be bought up in that atmosphere. Now let’s get to it. There has to be a driving factor for you to build towards a sustainable passive income, it can be anything, your need for the whims and fancies in this world, your love for wealth, anything, but the fact is that you need a driving factor! To me passive income is important so that I can sustain my family, I can dedicate time to them, I can give time for my kids (whenever I have that is) and yet not be worried about the food being on the table when it needs to be there, but most of all, I have time for God when he needs me, that is my primary source of motivation, automating other parts of your life, like your business, your communications, your source of passive income so that you have the time to enjoy the pleasure of doing things manually when it comes to things that really matter.

A friend of mine heard me saying that I wanted to automate certain parts of my life and she said “its funny how people relate to automate with their own personal lives these days” – This is the main reason why I’m writing this blog. I want people to get this notion out of their minds and that it’s okay to automate, as long as you automate for the right reasons.

Have you taken a large home loan? Or did you put your savings in stocks, mutual funds or bonds? If not, then you can relax (not to relax about the fact that it’s essential for you to understand the importance of passive income but to relax about the fact that you are less likely to be affected by a bubble) but all of us who did are living on borrowed time. So you can see why I say passive income, in-order to prepare ourselves for the next financial crisis. You think the Dot com bubble was too big, well, there’s another big one coming and as a matter of fact; we are living in one, the bubble of all bubbles the “bail-out” bubble. The essence of this is that if you have set your passive income to cover your basic living expenses, then you are well on your way to preparing your selves. The clock is ticking and time is not working in our favor, it’s important for us to build a sustainable environment for the generations to come not to mention, to enable them to understand the importance of this sustainability.

ImageI mean what’s the point of going around and making money when you are not there for your child’s recital? So in order to be able to that, firstly you need to prioritize, what I mean by that is, if you prioritize business and money over your family and friends and relationships, then go for it. So what’s the point? Why are you here on this earth? God has given us this life to enjoy. Earth and the relationships that you have is a gift from God; we are its people who are meant to enjoy God’s grandeur.

The art of entrepreneurial listening

ImageI stopped pretending to myself that I was anything else than what I was ought to be, had I really succeeded in anything else, I might never have found the determination to succeed in the one arena that I truly belonged, Some failure in life is inevitable, it is impossible to live with out failing at something unless you live with so cautiosly that you might as well not lived at all, in which case you have failed by default. It gives one an inner security that can be acquired by experience alone and no where else.

The Greek author Plutarch says, Know how to listen, and you will profit even from those who talk badly. I heard this from my dad one day when I was young and I was fighting and going out of my way to make a point as to why I needed a night out, I wanted to go party with my girlfriend and buddies, although mission accomplished after all the drama, that statement made by him somehow reserved in my mind, it was as though a computer language that was entered by a coder, and automatically implemented, me being the computer and my dad being the coder. 
  

Listen to others, if you wanna be a successful entrepreneur, you’ve got to master the art of listening, the way you start is by taking bits and pieces of what you hear from others and go home and try to make sense of it, if you make this a habit, I’m not kidding you when I say that there’s going to be much clarity in your vision and thoughts! 

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Whom should you listen to the most? Your investor! I cannot emphasise more on the importance of keeping a good investor relationship, and by good investor relationship I don’t mean having a conversation or a cup of coffee, although its debatable that its probably the right way to begin, I don’t deny that, however, what is even more important is that you have to, you absolutely have to  find a way to show him/her that you are worth more than his investment in you. 

And how do you do that? by using as little resources as he gives and working out the max in return, put yourself in the investor’s shoes, you yourself haven’t gone to the extent of taking a risk and invested in yourselves (BTW I’m talking about seed fund seekers), by taking a loan or the likes. One has to understand the relevance  of the investor’s expertise, coz at the end of the day realization has to be made that the investor didn’t come to you, instead you went to the investor! for an investee, grab hold of any opportunity that knocks, coz it knocks only once.