I grew up with a father who owned his own business along with my grandfather before him. As I watched these men and their friends over the years, I began to notice something.
Those who were truly financially independent, owned their own business. And, not just any business, they all had businesses that made money even if they weren't there. If they were sick or on vacation their business still made money.
In business, this is called PASSIVE INCOME.
Financial freedom is usually only achieved by those who figure out how to establish a passive income source.
To restate, passive income is when you can generate revenue even though you are not present (you stop trading dollars for hours).
That way you’re always making money, you can never be laid off, sick, or injured.
Examples would be when someone has employees earning money for them or maybe investments... However, as Soloprenuer we want to focus on business models that don't require employees.
Once setup, a Solopreneur passive income business model becomes an ASSET.
And once you have a few assets, this is when your passive income really starts to grow, so when you’re spending time with the family, on a trip, or just sick in bed, you’re making money!
In the book “Rich Dad, Poor Dad” the author compares two dads, one who’s rich and the other who’s poor.
The main point of the book is that the rich dad develops assets and the poor dad develops liabilities.
The author defines liabilities as anything you have to pay money to, and assets as anything that pays you money. So, a house is a liability, but a rental property is an asset.
By starting passive income sources, you’re creating little assets that keep on paying you even if you’re not there!