Are You Still Trading Your Time For Money?
When I was still employed, I was very very much eager to know what will be my life if I will leave my job. Since my interest is entrepreneurship I read many articles about being an entrepreneur and one of those I always remember is not to trade time for money. The way I understand that phase is selling my time to an employer. Obviously that is the most important thing in a man’s life that he can exchange money with. Having been there as an employee myself, I can say that no matter what you do to a company, that is the only thing that counts whether you have done a marvelous thing. Even if you care a lot and wanted the company you are working with to be on the cutting edge against it’s competitor. The only thing that the company sees is that you are being paid by the hour by means of punching your time card from the time you enter the workplace and time you leave the office. It will be assessed and computed in the accounting department and then on the payday you will get your payslip. A life cycle of an employee indeed.
But what about an entrepreneur? has he already escaped that kind of life? Maybe one good example I wish to share is my practical day to day living. (Sorry if I misinterpreted this blog to my subscribers thinking that I was one of the big time entrepreneurs who owns chains of businesses.) Beside my online ventures, I was forced to deal with PC repair because my wife have friends who owns computers so who else will do the job for them? OMG! it’s me again to the rescue! I’m doing it for free because I’m so generous and kind ( he he he, no I’m just kidding). I’m doing it for free because of friendship and for word of mouth promotion of course. So one day one of my wife’s friend referred someone who is having trouble on her PC. At first I’m having second thought because I know even if I’m getting paid doing it, it will divide my time doing my online ventures. Guess what? I’m right all along because I spend half a day fixing that computer (and revisit again fixing minor problems for free). So I traded my time for money instead of devoting my time so I can generate passive income.
So I was pondering on those things and thought about the things should be done to avoid being tied up even though you are already self-employed:
- Build a business – when you open a barber shop and you are the only one cutting people’s hair, then I don’t think that is a business. Maybe I can call it freelancing. Having a business is hiring barbers for your shop. So that means you don’t have to do everything if your business is providing services. If you have a retail store then that is a different story. On my example above about PC repair, if I have a repair shop and hired technicians to do the job for me, that is a business and will not take all my time fixing computers.
- Generate passive income – there are many ways to earn passive income. Wikipedia defines it as “income from trade or business activities in which you do not materially participate”. An apartment is a good example of a passive income and interest/dividends from savings or bonds. But those things require a lot of money to materialize or to make a good income. Multilevel marketing is also a passive income generator but it’s already very saturated and already have a tainted image so I think that is not a very good choice right now. Since we already in the internet age, there are many passive money making opportunities you can find like earnings from affiliate marketing and internet advertising. So the only thing you have to do is research and learn the trade.
- Any suggestions? this portion is reserved to those who wish to participate and share some of their experiences. Just fill-up the comment box below.