Passive Income Doesn’t Exist

We’re emptying our pockets on Wednesdays 🚀 with the Midweek Money Minute. It’s a one-minute read on one topic each Wednesday. (have a topic you want covered? Just reply!)

It’s passive… until it’s not.

Passive income has gained massive popularity as an interest in the past 5 years. Thought leaders like Pat Flynn and Codie Sanchez inspire people to rethink their life, and embark on a journey to redesign everything with passive income as the foundation.

When a “passive” investment is going well, it really looks and feels passive.

But when it goes sideways, it turns into an every-present elephant in every single room you enter.

When a passive investment is not yielding as planned, it can keep you up at night. You’re glued to your phone, going to every rabbit hole trying to figure out what happened, or how you should react.

Been there? I have.

That’s when passive income turns active.

The challenge is that hiccups are a natural part of business – and any investment is a vote of confidence in business.

So what should you do about it?

Expect the hiccups.

Investments are non-binary. Nothing in life is fully active or fully passive. Every single investment lives somewhere on the spectrum.

So get comfortable with that fact, and learn to identify where on that spectrum you want to live. Want a sense of control? Operate a business or day trade stocks. Prefer to set-it-and-forget-it? Go with index funds or REITs.

And know that the next time a war breaks out, or the stock market has a bad day, or the rent payment doesn’t come in… that’s just part of the game.

Onward and upward,
Simon Trask 
(Small business owner, advisor, and advocate)

P.S. – if you are a small business owner, you will get a ton of value out of the Profit Hiker newsletter. It’s one free gold nugget sent from me three times a week to help you elevate your business.