4 Ways To Make Money While You Sleep

You Work Too Hard For Your Money, Time To Get It To Work For You!

“If you don’t find a way to make money while you sleep, you will work until you die”- Warren Buffett
Those are some strong words from the greatest investor ever and one of the richest men in the world.
There are two main ways to make money: passive or active income.
We all understand what active income is, it’s getting paid to do a job or sell something: hourly, salary or commission. Show up, work your job and get paid, it’s very simple and it’s the way most people make a living and provide for their family. But do you know what J.O.B. stands for right? It’s Just Over Broke. No matter how much you make, it always seems to leave your account just as fast as it came in.
The first problem with this is that if you’re not working, you’re not getting paid. Most people get caught up in the rat race of: waking up, going to a job (that you probably don’t want to be at), making money, spending the money they just made, going home, going to sleep and then repeating and busting your ass 5 days a week for about 45 years or so. Sound like fun RIGHT?
Does this sound like the routine of anyone you know?
I know I can relate.
The second problem with having a job and active income is that in most cases there is a ceiling on how much you can make no matter how hard you work. Whether it’s $10/hour, $50/hour, $2000/month salary or $20,000/month salary, there is typically a boss deciding how little they can pay you and still keep you happy enough to keep working there. It’s not like you’re actually in control and can give yourself a raise (but wouldn’t that be nice)! In some cases you can get paid commissions or bonuses for producing certain results or hitting targets but if you’re not making it happen, then you’re not getting paid.
Now for the part that gets me excited and is one of the VERY few ways to get rich; PASSIVE INCOME!
Passive income, also known as residual income is money that you don’t have to physically work for. You set it up and do the work ONCE and then enjoy the cash that comes in steadily and consistently FOREVER, or until you sell the asset.
Whether you decide to go work, spend the day with your family, sit on a tropical beach with some fruity blended drink or just stay in bed and watch 17 hours of Netflix, those cheques keep coming in.
Passive income gives you the freedom to do what you want and when you want to do it. Getting cheques show up in the mail or directly deposited into your account without having to go to a job. It’s a great feeling!

Here are four of the main ways to make passive income in no particular order.

1. Real Estate Investing

Cash flowing real estate is by far my favourite way to make passive income, so yes I am openly biased. Everybody needs a roof over their head so by owning and renting clean, affordable housing, you are fulfilling one of the three basic human needs for survival (food, water and SHELTER). Even though many businesses can now be operated remotely, there will also always be a need for commercial properties for restaurants, stores or offices.
The way to make passive income from investment properties is by buying the property at a low enough price where the rent you are paid covers ALL of your expenses and leaves you with extra money every month. The positive cash flow left over, combined with the tenant paying down your mortgage and the property appreciating in value over is what will create long-term generational wealth for you and your family and will have a huge impact on your net worth.
Most rich people and families have either made their wealth through real estate or hold their money in real estate, it’s not a coincidence, they know that it is the safest and best way to protect their capital. You can either manage the property yourself, hire a management company to do some of the work for you, or work with an experienced real estate investor who would be happy to create a win-win opportunity where he/she finds the property, does all of the work involved and gives you a great return.

2. Businesses

There is a stipulation here, the business MUST run without you being there and actively working in it. If you own a bakery, you’re the only baker and you’re the one that opens up in the morning and every main decision goes through you, then you don’t own a passive business, you are self-employed and own a job. You could start out small with vending machines, affiliate marketing, a MLM company or an unlimited amount of other options. There are also many start-ups that need investor funding to get started or to grow their business and could use your capital investment, just like the T.V. shows Shark Tank or Dragon’s Den.

3. Royalties

This is owning the patent, trademark, rights (or portion) of a product, song, book, intellectual property, public appearance or even natural resources. Whenever anyone buys or uses it, you and the other patentees will be sent money for your portion of ownership. If you have made any appearances on TV or in a movie, have invented a product (and kept a royalty in the deal) or have written a book, you might be familiar with this type of passive income. If not, you actually have the option to buy and invest in royalties that other people sell.
One of the most popular cases of this is in 1985 when Michael Jackson bought a company that owned rights to a number of Beatles songs for $47.5 million and now the company is valued at over $2 billion! This is a very expensive, high profile example but you can purchase much more affordable portions through a number of different companies from different artists.

4. Dividend-Yielding Stocks

There are stocks called dividend-yielding stocks that pay you a portion of the company’s profits or their reserves without needing to sell your initial investment. I would advise starting with an Exchange Traded Fund or ETF since your risk is spread out between a basket of assets and involve less due diligence than investing in just one company.
You work long and hard enough for your money! It’s now time to start putting some of that away to invest in creating some more flows of income.
Do you really want to work every day for the rest of your life?
Didn’t think so.
The only way is to invest in one of the above methods and get your money to start making you money. Invest in assets instead of wasting your paycheques on liabilities and watch your income and net worth start to grow and keep on growing.
The choices you make today about where to allocate your hard earned money can create you a life where you have the time to do what you want and the money to do it. You owe it to yourself and your family!

If you found any value from the article or have any questions, PLEASE SHARE, LIKE, or COMMENT below.

About azureinvesting

Mike Japuncic is a real estate entrepreneur and investor. He is the president and CEO of Azure Investing. His mission is to empower others and help them to invest in real estate to create a better future for themselves and their families.

Get More Real Estate Market Info... Subscribe Below!

Learn more about us and find other resources on buying investment properties with us. Like us, follow us, connect!

No comments yet.

Leave a Reply