Creating Passive Income From Scratch
It’s actually possible to create assets from scratch (or with little money) that generate passive income and that can help you move towards financial freedom.
0:00 – Welcome to Quick Money Mondays
0:40 – You probably know about the idea of purchasing assets
1:51 – But there is often the opportunity to create assets in your life
2:33 – Once you can see passive income opportunities you can always see them
3:56 – When you can’t see opportunities they don’t exist, when you can see them they are everywhere
4:50 – How do we go about creating passive income opportunities?
6:19 – You have to go through a period where you are actively looking for them
8:00 – Another way to look for passive income opportunities
It’s actually possible to create assets from scratch or with little money that generate passive income and that can help you move towards financial freedom. That’s what I want to talk about in this episode. Hey, I’m Ryan from on-property, helping you achieve financial freedom and welcome to quick money Monday’s the day where we spend some time talking about ideas around money and concepts around money or personal things around money because we love discussing money, but in society it’s not really accepted to do that. So that’s what this segment is here about. And today I want to talk about the idea of creating assets. So you probably know about the idea of purchasing assets. So purchasing property, purchasing stocks, purchasing, what other ones are there? I don’t know. I’m sure there’s lots of other things out there, but I guess the two big ones that people invest in our properties and stock.
So you purchase assets that might generate passive income. So you might invest in positive cashflow property or dividend paying stocks or you may invest in assets that just hold value. So negatively geared property where you’re trying to grow the value of the property. Are you hoping the value of the property goes up or maybe stocks were you hoping the value of stocks goes up? So the concept of buying assets is very commonplace in your superannuation. You are likely working earning money which goes into superannuation, which is being used to buy assets. So buying shares in a company is most likely what you’re doing. So if you have money in a mutual fund and it’s buying a mixture of shares in a mixture of companies, when you invest in stocks, your buying assets, when you invest in property, you’re purchasing an asset. But there’s also the opportunity to create assets in your life.
And this is something that is rarely talked about that people really think about because it’s very difficult to do now in the Book Rich Dad, poor dad by Robert Kiyosaki, which is a, it’s a must read if you haven’t read it, I do suggest it. Go to on-property dot com.eu forward slash Richdad and that will redirect to where you can purchase the book on Amazon or I’ll link it up in the description down below. But in that book he talks about this concept of the rich don’t work for money, the rich work to create assets that then generate them income and he in the Book Rich Dad, Poor Dad, Robert Kiyosaki tells this story about how he was working for his rich dad for 10 cents an hour or something like that and his wage got taken away so he was working for free and the rich and encouraged him to look for opportunities in order to generate passive income or in order to generate income.
Basically look for business opportunities and the key factor here was that rich dad said to him once you can identify opportunities, once you see opportunities then you always see them. So once you can see one of them, then you start to see a lot of them. And this is one of the really hard things about creating, passing passive income out of thin air, that it’s almost like the room of requirement in Harry Potter. So I’m going to nerd out here, but in Harry Potter there’s this room of requirement that only appears when you need it, but there’s this saying around the room of requirement that says, if you have to ask, you’ll never know if you know you need only us. So if you don’t know about the room for requirement, you can’t find it. But if you know about it, then all you need to do is ask and the room appears.
I think that’s the concept behind it. But with creating income and with creating passive income and assets from scratch, when you don’t know about it, when you can’t see the opportunities, then they don’t exist. But once you can start to see them, you start to see them everywhere. So I don’t, I can’t see passive income opportunities everywhere in my life. But something that I do see is online in online businesses, in websites, in different topics. Uh, I see passive income opportunities everywhere. I can look at someone’s business and I can see how to turn that business into a passive income or I think about a topic and I know how I could generate a passive income around that topic or in that industry. And so because I have seen them in the past, because I’ve worked to create them in the past for myself, and then able to replicate it and kind of see those opportunities everywhere.
So how do we go about discovering these passive income opportunities? How do we go about creating them? In the story in Rich Dad, poor dad, he was working for free. And what he discovered was that at the shop that they worked at, the lady would rip off the front pages of comic books to hand back the distributor to get a credit for them. And they would, the comic book itself would get thrown into the bin. And so he discovered an opportunity where I think there’s a loophole, he probably shouldn’t be doing this, but he was able to take the comic books that just had the front cover removed. And basically he created a library where people could come in and they could pay 10 cents to enter and read as many comic books as they wanted. So comic books were probably 10 cents each and people could pay 10 cents and read multiple comic books in an afternoon.
So it was good value for the people. He made extra money and they had employees working for them as well, so he had his sister or something like that working as the librarian or the overseer would collect people’s money, make sure people didn’t steal it, and they generate a passive income. I think they made like $9 or something like that, which sounds like it was a lot of money back then and definitely more than the 30 cents per day they were making at the time. So he discovered this opportunity, created this opportunity. It worked for a period of time, but then his eyes were opened and he was able to see opportunities. Now in order to discover opportunities, you have to go through a period where you’re actively looking for them and this period is filled with failure. This period is filled with frustration. This period is filled with just do they even exist?
How do you do this? You might find some get rich quick schemes that you discover a completely false and it’s just, it really is trial and error in order to discover this, if you want to learn how to create passive income online, um, then I create things called niche sites. So if you’ve got a niche site, project.com that’s a good guy to follow and that can get you started if you want to look into that sort of thing. But there’s so many different opportunities out there to create passive income through a business. Even a video that I did with Ben Everingham where we talked about creating a side business and creating a side hustle. We talked about what we would do if we each had a lawnmower business. And for me, the business idea that I came up with is basically creating lawnmower runs and generating business, but then on selling those runs onto someone else.
So effectively becoming a marketing company, which you could then outsource. And um, yeah, basically. So leads to people who wanted to mow people’s lawns. So even though we’re talking about running a lawn mowing business, somehow I ended up turning it into a marketing business that could be outsourced and could be passive income. So I’ll link up to that video in the description down below as well. So you can go ahead and watch that if you want. But what I want to do is just encourage you today that start looking for opportunities of ways to create passive income in your life. And I think another way to look at it, especially if you run a business, um, already, if you have some sort of business or some sort of way of making money outside of a regular job, this is the way I encourage my friend to go about it.
And he didn’t follow my advice. And so I didn’t do, didn’t get in the passive income, but I was saying in your business or in your life, look for things where you make some money. It doesn’t have to be excessive amounts of money. It can be really small amounts of money. But look for ways where you generate. Some money for very little or no work. So my friend owned a cafe sort of shock, um, place. And I was like, okay, what aspects of your business do generate money? And they take you hardly any work. So it doesn’t have to be a lot of money, doesn’t have to be the core of your business, doesn’t have to be the majority of your income, just something in your life where you can generate a bit of money and it’s hardly any work for you. So the core concept here is that you generate some money, but it’s hardly any work.
And the idea here is that if it’s not a lot of work, if you could potentially scale that thing and do more of that than you would have an income where you’re not working a lot in order to earn that income. So that’s another way to kind of go about it rather than just blindly looking for passive income opportunities. Be more specific and look for ways that you can make some money with very little work. So that’s what you kind of want to start with and go for that. And then if you can, then you can find a way to turn that into a passive income by outsourcing it or putting systems in place that allow you to do that. So how can you create some money with very little work? And if you can work that out, then it’s just a matter of can I scale this item?
So if I can do this, make a little bit with hardly any work, can I actually work on that so that I can sell more so that I can earn more money through that avenue? And if the answer’s no, then you look for something else in your life. So that could be a good tip, I think for how to find passive income opportunities. So go out there, look for them, because once you find them, then you can always find them. And there’s so many passive income opportunities in life. If I wasn’t working on the businesses that I’m working on at the moment, I would almost instantly have a whole bunch of ideas that I could happily pursue that would generate a passive income for me. So for me, my limitation is not ideas. It’s not passive income opportunities. It’s actually the time that I have and the money that I have to invest in these ideas.
So I want to encourage you, go out and do that today if you haven’t already, go ahead and check out some of the previous money. Mondays. I originally talked about what I’m doing to pay off my debt, so I’ll link that one up as well as the episode I did on paying off debt versus investing money. And actually it was a massive difference in terms of cashflow between paying off debt and investing money to the point where the cashflow effect was basically double. So that was a really interesting one as well, which I’ll link up in the description down below. Thank you so much for watching and until next time, stay positive.