It seems that we have been talking seriously about a lot of things the last time. Today, let us take things a bit lightly. Let me just share to you a part of my story.
I remember when I used to work in a consulting office. It is the typical corporate 8 to 5. I was a junior engineer back then. We work every day to produce necessary plans, calculations and drawings for different structures. It was fun and challenging. There are times which we need to work with extended hours just to meet deadlines. And by the way, the pay was good. Plus the good friends and colleagues I had along the way.
Once I had a chance to take a long time off from work, I found myself starting to ask questions. What am I working for? What keeps me going all this time? Yes, I was having fun. I enjoyed my work. Again, the pay was good. Oh, I forgot to mention, a very big chance for career advancement. How could I ask for more? Right? I must have been very ambitious eh?
From then, I realized that the things I had were only good for myself. We both know that as Filipinos, we have a great affection for our families. Families, which most of the time, we need to support. I believe our priority should not only be to put food on the table; as we know that everyone has his or her own set of dreams and aspirations.
Someday I will marry and have kids too. We would need a home. The kids have to go to school. Yes, these things are overly simple and I do not want to play naïve. All these things require a big chunk of money. So I decided that I need not only live from day to day but also to consider these thoughts along the way.
Sure, I could take care of those things I mentioned once they come along; provided that I am still ABLE to work. At that moment I learned that I am working for an “Active Income”; a stage in which I am working for money. I did not know that there exists such a thing as “Passive Income” until I read of Robert Kiyosaki’s “Rich Dad, Poor Dad”.
At this point, let me explain to you what active and passive income really mean (well, at least figuratively).
One day, on my way home, I was listening to one of my favorite songs. It says: “Everyday, the bucket goes to the well. One day, the bottom will drop out. Yes, one day, the bottom will drop out.” Now, that is what active income looks like. The well could dry out any time. The bucket might break. And for sure, you will wear yourself out one day.
On the other hand, passive income is like a stream which flows naturally; with or without your effort. It simply flows.
Building a passive income source is when people start to build wealth; once your focus moves from providing for your *basic needs towards reaching higher goals. Certainly, when you no longer need to work for money, you could start attending on more important things in your life. Or at least you would start to know what is really important to you. It is like an ace in a hole that you will shift your mind from what you could get to what you can GIVE. You will begin to understand that you are part of something bigger. I know you feel in your gut that you really are part of something greater than yourself.
Working for money and being negligent of building wealth is I believe one of the biggest mistakes a person could ever make; not only in his or her respective career but with his or her life as well. If you are bound to work hard in a job all your life, you would have slim chances on advancing to greater heights as a human being.
If you will not start to build your own wealth (and think that it is not important), for sure, someone else will hire you to build his. Your choice.
*A.H. Maslow’s Hierarchy Of Needs: http://en.wikipedia.org/wiki/Maslow%27s_hierarchy_of_needs
It is my sincere hope that you got something new today. See you around