Not all money is created equal

What the hell do I mean by this?

I mean that one persons £1000 can affect his life in a VERY different way than another person.

Let’s look at two people –

Person A – Makes over £500,000 per year and works 60 hours a week for a giant corporation. He’s ALWAYS in work mode and has a very annoying boss who he doesn’t get on with.

Person B – Makes £1500 per month from a small YouTube channel. The channel is him talking about something he loves, and the income is passive.

Now, the MASSIVE difference here, is that person B has passive income.

He doesn’t NEED to physically be in an office, and although he earns MUCH less than person A, he’s more free.

He’s so much more free in fact, that it’s ridiculous to think about. Person A could make what person B makes in a month in a few DAYS yet he’d still feel trapped. Whereas, person B with the passive income of £1500 per month can be in Thailand enjoying the beach lifestyle.

Because the money is passive, it GOES FURTHER than the money that is earned by being in an office physically. It’s worth more in terms of REAL life value.

Sure the AMOUNT of money that these two people make is vastly different.

But, when person B makes £1000 passively, it’s WORTH more than Person A making £10,000.

Why?

Because person B (let’s call him mr passive) gets to spend the most valuable commodity of all, TIME, how he wants. He can earn that money while DOING what he wants with his time. And that’s fucking priceless.

Sure the first person earns far more but what can he do with it? He’s probably more stressed because he’s got his big sales targets to hit, shareholders to impress, boring meetings to sit through etc…

Now this isn’t ALWAYS the case, but in almost all cases, passive income is more valuable than active income even if the active income is 10 times the AMOUNT of the passive income. You with me?

So there are lots of ways you can make passive income. In fact, I’ve got a post about making money doing what you love if you want to read that, but the most important thing is to think about WHY you’re doing it.