“Labour not to be rich, cease from your own wisdom” – Provides. 23:4.
Oxfam Report
In February 2015, I came across a report by Oxfam International, a global anti -poverty group. This report, released in January 2014, called, “Working for the Few1” showed a huge income disparity between the rich and the poor. Some shocking statistics in it are:
#1 – 50% of the world’s wealth is owned by just 1% of the population (7 billion).
#2 – The wealth of the 1% richest people in the world amounts to $110 trillion.
#3 – 50% of the world’s population (the poorest 3.5 billion) owns the same as the richest 85 people in the world.
85 Richest People
First, who were they? To find out who these 85 richest people were, I went to Forbes Billionaire list. On the 2014 Forbes billionaire list, the top 85 people (78 men and 7 women) were business owners – Carlos Sim, the Telmex telecom owner from Mexico, Microsoft’s Bill Gates, Warren Buffet of Berkshire Hathaway and so on.
Next, why the huge income disparity between 85 business owners and 3.5 billion workers? Because of the two types of income: passive and active income. An employer earns passive income, while an employee earns active income. Thus, the 2014 Oxfam report “Working for the Few” proved that passive income is the reason 85 people own as much wealth as the poorest 3.5 billion people (half of the world’s population).
In fact, the 2017 Oxfam report is even more shocking: Eight billionaires own as much combined wealth as ‘half of the human race.” This becomes increasingly clear that to join the rank of the millionaires, you must make passive income your #1 goal. So , what is passive income?
Build Passive Income Assets
Passive Income is a consistent sources of cashflow. It is received on a regular basis after an initial investment of time or money or both has yielded this stream of income. Examples are pensions, rental income, or royalties. But, active income is different. It is the wages, tips, or profits that the self employed and employees receive in exchange for their time on a business. Therefore, once you stop work, an active income source ceases.
Many employees spend all their active “35 years of service” to acquire only one passive income known as pension. But, there are many other sources of passive income that one can create within five years. Let’s look at five of them:
1. Agricultural Farms
Although, it requires a lot of money initially to invest in acquiring land, planting cash crops like palm, coconut, or cocoa trees, and leasing agricultural equipment. Eventually, these initial efforts will start making money continuously.
2. Rental Properties
Building and renting properties for residences, offices and event centres can bring in a monthly or yearly source of passive income.
3. Intellectual Properties
You can produce a work of art once, and then continue to earn money from it when someone or an organisation uses it. Examples are music, videos, pictures, etc.
4. Content Marketing
You can develop information products in an area of expertise through blogging, e-books, audio books and books. Although these work took you days or months to produce, once published, you will continuously make money every time they are sold.
5. Network Marketing
Not all network marketing schemes offers you passive income. The ones that do, offer you a consistent cashflow after you have built a team and ascended the topmost stage in the business. An example is Helping Hands International. To know more about it, visit http://www.helpinghandsintl.biz. If you are interested in joining, contact me. As a team leader, I will be very glad to show you how to succeed in it.
In conclusion, the reason most workers are not rich is because their money goal is to climb the different levels of promotion in their company until they retire. In other words, they earn passive income at age 60 or after 35 years of “meritorious service.” What about professionals? They focus on getting a better paying job. The issue is that whatever your earnings, the day the job ceases, your income stops. So, a higher wage is still active income.
In fact, school trains you to earn active income. That’s why most graduates are not millionaires. But school drop outs like Bill Gates and Mack Zuckerberg ended up rich because of passive income. To be rich, therefore, passive income must be your #1 goal.
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