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28 Mar 2017

Passive Income as an Employee

We all know that to achieve financial freedom, we need to not work for money and let money work for us. This means we must have income when we are not working, or commonly known as passive income. 
Unfortunately, most people never think that they can have passive income, for they think passive income is only for investors and business owners, especially people in Network Marketing or MLM.

Today I shall teach everyone how you too can have passive income, even though you are just an employee and hold no investments and not doing network marketing business. That's right, you hold on to your full time salaried job and get passive income.

Passive income, according to the dictionary, is income you earn when you are not actively working or working passively. Notice the key word 'working'. That means you earn passive income when you work, just that you are not working actively. According to research, there are 3 levels of passive income:
  • At the highest level of passive income, you simply do things one time and get paid many times over, over many years. Like people who earn royalties and people who hire someone to work for them
  • At the middle level of passive income, you work more than one time to get paid, but the number of times you get paid is always more than the number of times you work. Like repeat business, you get the customer one time and need to service them to get paid many times over
  • At the lowest level of passive income, you simply have to work to get paid, but you put in lesser hours than before and still get paid the same, or you put in same hours but get paid more. A good example is when you are being more productive and you get to earn more for lesser work. 
There are 7 ways that you can earn passive income as an employee:
  1. Automation and Tools. This includes the use of hardware and software, where you automate a process or increase your output with tools
  2. Higher Skill. When you are more skilled, you can do more with less. Skills here include education, work experience and knowledge
  3. Higher Motivation. When you operate at a higher level of motivation, your work becomes easier. Morale and inspiration will just come in naturally and you'll realize that work is a breeze. The more you enjoy your work, the more output you produce and you will achieve a rising level of passive income
  4. Getting Work Done by Other People. When you lead, manage and inspire people, you get work done by other people and get paid for work done by them.  Many leaders and managers are doing that every day. Of course the better you are at leading and managing people, the higher is your passive income
  5. Leverage on Experts and Other People. When you tap into consultants and trainers, you'll achieve a high level of output without much work, leading to high levels of passive income. Collaboration with other people also gives you similar outcome
  6. New Ways of Doing Things. Like now we use social media to connect with people, we can even make money from social media. This type of passive income is easily available to all
  7. Creativity and Innovation. The world's food is now produced by just 3% of the world's population. This is largely due to creativity and innovation, where we can now produce more food with lesser land and labour. Many farmers are enjoying high levels of passive income without realizing
I can go on and on, but making passive income is free for all, as long as we take advantage of it. We can make passive income not just from investments and businesses, but from our employment.

Whether you are self-employed or employee, as long as you increase your productivity, you systemize your work, you innovate and create value, you use automation and tools, and you work well with other people, you will be earning passive income. For you now work less than before and still earn the same. Of course the next level is to increase your percentage of passive income.

The ultimate level of passive income is when you simply don't need to work at all and earn all the money. This can be achieved even when you don't invest a single cent, like you own a network marketing business.

By Andy Ng, Chief Trainer Coach.  Andy specializes in training and coaching people how to achieve passive income. His clients range from MNCs to small enterprises and individuals from 14 countries. Contact at 8201-4347 or hpa88@singnet.com.sg