How to invest time instead of money to earn passive income
If you are like most folks you know that investing is a great way to build wealth. However most assume it takes money to make money. There is however another and possibly way. It’s what bootstrap entrepreneurs with no start up capital do to get ahead.
Sweat Equity and Perspiration Profit
Have you ever heard about sweat equity? Sweat equity is the contribution we make to a project through our own effort, as opposed to buying a share with our money. Sweat equity could also be the value we add to our property, through improvements, restoration and decoration. but we are not talking about that kind of sweat equity. I will bet you have lots of that kind of sweat equity, but the problem is it won’t pay you dividends until you sell your home.
Sweat equity investments can not only be lucrative but can come with much higher returns than capital investments. However there is a catch, which is that you only have so much time in a day. This is why it is so important to focus your sweat on things that will not only make you income now, but continue to earn you more in the future.
Sweat Equity is Effort that Adds to or Produces an Asset
Most people think that an asset is only purchased. But that is not the case, here is a list of cash producing assets that can be built with sweat equity.
- Writing a book
- Writing a song or album
- Building a Product
- Creating an Educational Training Course
- Building an network
- Building a customer base
All of these things can be built with sweat equity and can continue to pay you long after you do the work.
The rich get richer and the poor get poorer, they say. I used to believe that when I was working for someone else. That was the second dumbest thing I ever did. The dumbest was applying for the job in the first place. Once I had access to the financials of the company I worked for, I discovered that smart people get richer. Others are grateful for a pay rise to cover inflation.
It is Time to Have a Plan B
Employers have gone away from the idea that an employee is a long term asset to the company, someone to be nurtured and developed, to a new notion that they are disposable. Before the boss disposes of you, you need to find a way out of the relationship.
Do not kid yourself into thinking the boss loves you to bits for what you do, or that the company plans to keep you in comfort forever. You are where you are because you are a money making machine. The only problem is you are not making the big money for yourself.
Building a Network and Customer Base
We are not best selling authors, musicians, inventors of products or educational thought leaders. All of these ways to use sweat to build equity require a talent. We however we do not require any special talents because all you need to do to start investing with your effort to build equity is to build a network.
Anyone can build a network.
In todays environment it is easy to build networks, using twitter, linkedin and other social media, it is also easy to identify groups with common interest and problems, and with the right online infrastructure it is easy to profit from solving those people’s problems.
This is how all business leaders think, find a group of people with a problem, make a profit from solving that problem.
The bigger the problem, the bigger the potential profit.
If you would be interested in receiving some further information about the Global Home Business Academy.