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Millionaire Mindset series 14: Work For passive Income Not Earned Income

We all need more than one income source, but there are only so many hours in a day to work. Every time someone talks about wanting to earn an additional income, the recommendation others offer is to “get a casual or side job.” But what if you do not have the time and drive to earn an extra coin?

As opposed to active income that we earn by putting a lot of effort and time into work, passive income is an income that you earn legally without being actively involved in working. This means for someone to earn passive income today, they must have made a brilliant decision in the past as regards investment, and now that financial choice is working for them.

Bitature – one of the richest men in Ugandan said: “It’s not true that the rich don’t work hard; they actually work very hard, but their working style is different from that of the poor. A rich man can spend 18 hours a day thinking to get more results than a poor man who spends the same amount of hours toiling. Over time, rich people learn how to prioritize and know where to focus their efforts in terms of energy, time, money and other resources for maximum results.”

That’s by design. But, if you’re sitting there thinking that passive income is impossible because you’re too busy working a day job, think again. Not only is it possible. Not only should you do it. But, you’d be silly not to put as much of your effort into generating a passive income immediately.

For those who are trying to earn a supplementary income for the first time, here is my submission on ways to make a few million Shillings a year on your way to attain financial freedom. 

The first major idea that will make you earn as you sleep is to write books but once the book is produced, marketed and rarely revised, it becomes a completely passive venture which can provide you with passive royalties in a lifetime. You can also make an e-book version of the print copy and sell it via Internet, may be through Amazon.

Secondly, if you like photography you could put your photography skills at work and feed websites that buy them. Websites such as Shutterstock provide global individuals with platforms to sell their photos. They usually offer either a percentage or a flat fee of each photo that is sold to a site client. In this way, a single photo could present you an opportunity to permanently cash in because it can be sold again and again to various customers. All activity becomes completely passive with sale details handled through the web platform.

For the learned, say teachers, you can create an online course. Everyone can be an expert at something. For instance, you can create an online course teaching Mathematics or English. Your online course should have video lessons, checklists for completing steps you recommend in your video lessons, small e-books to supplement the lessons and audio files. People who have done this make crazy amounts of money selling lessons. 

The other way is to invest in a lending association or Sacco. There is probably no passive income that is more flawless than earning interest on safe investments, such as government Treasury bills and bonds. The problem is that those instruments pay insignificant returns – generally less than 1 per cent. It may be passive income at its finest, but you will never be able to relax or retire on returns that are that low.

Customer loyalty card rewards are another way. Most top rewards cards let you earn anywhere from 1 to 5 per cent back on your money as you shop for home. Here, you must be a signed up customer to earn this bonus. Kampala’s Mega Standard Supermarket offers some opportunities. For example, after spending just Shs55,000 on the card at any shopping round, you can earn points translated into Shs1,000.

Another route is purchasing shares where there is a possibility of capital appreciation. In that way, you can earn passive income from two sources – dividends and capital gains. Currently, Uganda Stock Exchange sells shares from a number of companies including Umeme, Stanbic, Barclays, among others.
Investing in rentals can also be very rewarding passively. Once you put up a property and fully rent it out, you are ready to get money. This is, however, semi-passive income because you must keep managing the property for you to earn well. But there are property managers who can manage this property for you, usually for around 10 per cent of the monthly rental fee. Professional management can make the investment much more passive, but will eat into your income.

You can transform your business into a passive money making business by hiring freelancers who work as contract workers. Look for freelancers with a strong work code to provide quality results. Tasks that include bookkeeping, writing, editing, purchasing, social media marketing/management and many others can be outsourced.

Rent out your stuff at a fee. Thousands of people every day are looking to rent any variety of items. Social media groups focusing on buying and selling can be a great place to advertise your items for rent. Here are some ideas of products that you could rent out: extension ladders, party tents, tables and chairs, projector, white board, serving tables, kitchen ware, napkins, outdoor screen, camping tents, outside lights and the list could go on. Just make sure that you have a proper rental agreement signed by both parties, get paid in cash beforehand, and get a current photo ID and secondary proof of address to protect the property you’re renting out. For extra peace of mind, consider requesting a security deposit as well.

Rent Your Car for Ad Space. How would you like to make money just for driving your car and not have to pick up any passengers? By allowing companies to place advertisements on your car windows, you can earn extra money each month simply by driving your car around town.

As you can see there are a couple of ways that you can make passive income. Hopefully, this list has helped you narrow down which source of income is best for you. So if you’re tired of the traditional way of making money, implement a few of the passive income strategies above so you can start working less and making more money while you sleep today.

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