My Passive Income Story ($0 - $3000/month by age 24)

Really, the way that I like to think about passive income is that it is one of the two income models or structures, okay? There's active income, and then there's passive income.

Now, active income is pretty straightforward.

It's what most of us know when it comes to income.

That is the model of income where you go somewhere and you trade your hours for a certain amount of money.

You work for a certain amount of time, and your employer will pay you per hour for the amount of time that you worked.

And for most people, this income model is absolutely fine.

But there is one particular issue with this model, is that it's not scalable.

You don't have an infinite number of hours in the day, therefore the amount of money you can earn in a day is limited, right? It's capped.

Whereas passive income, we don't run into that issue at all.

Okay? The amount of money you can make is not capped.

So passive income, on the other hand, is not where you just trade your hours for money.

It's actually where you put in a lot of hard work and a lot of hours upfront, usually for nothing.

You don't get paid for those hours.

But then once you've finished the work, then it starts to generate you money, after you've finished it, and it can continue to generate you money into the future.

Now, obviously there are different kind of, um...

Different ways of generating passive income, so the longevity of that passive income is different depending on what you've done.

But for some, definitely some kind of forms of passive income, you can finish that body of work, work really hard and finish that body of work, and then it can literally keep making you money, in some instances, for the rest of your life.

A common example of passive income is, say, writing a book.

You don't get paid for writing the book.

It takes you a very long time to write it.

But once it's done, it's done, and then it just keeps selling from that point on.

So you can think about something like the Harry Potter franchise, right? How much do you reckon J.K.

Rowling still gets from that franchise? She created it ages ago.

Heck, think about how much do you reckon J.K. Rowling gets from just Harry Potter and the Philosopher's Stone, just that book by itself, and she wrote that, or released it, it was published back in 1997.