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hate ugly tear and welcome back to another episode of the tech lead it is coffee time with your host the tech lead now today we're going to be talking about the top five tips I have for you before starting a passive income business as an ex-googler fleed I have actually started a number of passive income businesses at least five that have made fairly significant revenue and you may be wondering after all of this aren't I making enough money in my sleep why am i still continuing to do any of this work and this is what the pitfalls I have to talk to you about are because the thing is a lot of people get into the whole passive income business without truly understanding what's really involved and what that life is going to be like and they get in and make a bunch of mistakes along the way and what they end up having is they don't have a passive income business maybe they just got themselves another job maybe they're not generating enough revenue for them to actually quit their day jobs and they just end up chained up with even more additional responsibilities and work there are a lot of different pitfalls you can have here we're going to be covering them in this video by the way this video is brought to you by curiosity stream comm slash tech lead check them out they're a new sponsor and I'm very excited to bring this to you they are a streaming video service about documentary nature earth science animals math history any of that stuff the service was created by the founder of the Discovery Channel over 2400 non-fiction documentaries and titles brought to you by acclaimed filmmakers including David Attenborough Stephan Hawking and more I'm getting you guys a free thirty one-day trout check them out curiosity stream calm / tech leap all right so let's get into the content today and the first thing that you need to know about passive income is to make sure that it is not a job what I mean by this well you need to make sure that it is actually generating income passively right if you pick up an active income job like say you're running a restaurant that's not really a passive income you're just picking up a second job in your off hours right like for example being a youtuber or even this thing that I'm doing now sure I'm generating some revenue off of it but it is not really passive by any means even if you could say it's 10% passive 20% passive right as I'm sleeping I'm generating a bit of revenue here and there the bulk of that say 80 90 percent of the work it still has to be active because that's where most of the revenue is sure I can say it's kind of passive but really it's an active income job and for me I'm working these days like 80 hour weeks I work a normal day job and then I do the YouTube ad on the site that's just to full-time day job that I'm doing another story I heard about a while back was I had the co-worker who a wife made quilts so they would set about online shop and sell these quilts online that's not really a passive income business either right because for each quilt that you sell you have to actually create it make it and that's active even though you are selling it online just because something is an online web business does not make it passive income now one thing you may be wondering this what does this I'm holding here it's a wooden robot looks so much fun when Robo time offered to send this to me I said yeah sure send it to me and I'll show it to you guys and you know I thought it would be fun for us to make this as we go through our list just to mix things up a little bit and they also sent me this other item it is a pendulum clock this is going to be great too I'm going to have a lot of fun making this one so we will show you what this looks like at the end of the video tip number two is to realize that passive income may not free you from the rat race even if you're generating passive income you may still be going into a nine to five day job every single day why is that well for one people tend to be career motivated instead of money motivated your social status largely comes from having a career and being able to go to parties and telling people what you are what you do right if you go to a party and the only thing you can talk about is how you are lounging on the beach yesterday drinking mai tais people just aren't going to really respect you for that the other thing that you need to realize here is that passive income will not grow with you generally your career will in ten years if you have a career if you have a day job you may become like a senior engineer or director passive income will likely become weaker and weaker over time so yeah sure maybe you can come up with some passive income idea and maybe it's even beating your current salary now but will it beat your salary in ten years will this still continue to keep up pace and that is one fear that can keep people stuck to their nine-to-five day jobs because it doesn't replace that day job it doesn't replace a career necessarily even though it can replace your income for a short period of time not fourth tip I have for you is to understand that it would take a certain personality a particular literally say unambitious type of personality to generate passive income and to just sit back and let it go because one thing to know is that active income will always be passive income when it comes to revenue if you're ambitious enough to go out there and put in the heart up front work to set up a passive income business you may be the type of person who's ambitious enough that you may want to be generating as much revenue as you can and if you were to take an active hand in managing whatever business it is that you're setting up you would probably be able to say 5 X 10 X your revenue if not at least say to exit there's always going to be more that you can do more money to be made and at some point you just say you know what that's fine I'm just going to leave it at that you've created this passive income stream the product is fine as is you're just going to keep it at that state and it's time to go do whatever else it is you want to do whether it's going to be sitting on the beach or starting your next passive income stream like check out the instructions here this is like a level-10 IKEA puzzle which is great if you're like a programmer or software engineer like me who wants to see sunny you guys want to see sunny the fourth tip I have for you is to understand that there's going to be some large upfront costs as you set up your passive income business so it's funny to meet that for a lot of people who want to get passive income set up they're really lazy and they just want to go sit on the beach all day and yet there's this huge barrier in which they have to be very ambitious and get that business all set up and then after that they can relax and sit on that beach if that's really what they want to do but that gatekeeper essentially only allows the ambitious people to get through so these ambitious people they get their passive income business and set up and yet the next thing they do they don't really want to just go sit on the beach most people it seems to me they just want to continue building more passive income businesses and get as many as they can set up and keep chasing that additional revenue stream which is why to me I think the dream where people sell you that you're going to be able to sit on the beach and just make money in your sleep it's not quite that that I think should be the draw of passive income is really just about generating multiple income streams that provide you some level of financial freedom I'm not sure if it was actually for you to just go sit on the beach lays around all day that type of personality probably would not really be able to say that passive income successfully in the first place the fifth and final thing that I would recommend that you know about passive income is that 99% of people already generate some form of passive income right real estate many people have that stock investments even going to the grocery store to bulk buy own stuff such that today you put in some work and then tomorrow you don't have to put in the work to go to the supermarket right to buy your food that's a form of passive income as well because you're just front-loading your work for the rest of the week and yet many of us we continue to work and we continue chasing our ambitions I think the core of passive income what it comes down to is whether you're the type of person willing to leave money on the table here's a question I have for you which I have faced myself let's pretend you're working a job as say a software engineer standard salary may be like say 100k for that and let's pretend you also happen to be running a passive income side stream which is bringing in the same equal amount another 100k income would that be sufficient for you to quit your day job right would you just leave that money on the table even though it's pretty decent enjoyable work it's okay it's not bad and you know if you were to continue doing that you essentially double your income yeah sure for me I would just hold on to that right why not just keep it I'm not sure what I would do without that additional time if I were to just quit my job and lounge around on the beach all day I know for sure I would probably lose any social status that I have right like if I were to go to parties and stuff which this has happened to me in the past before I would go to parties and people would just say what are you doing it's like yeah I don't have a job I don't work right I'm just hanging around living off of my investments my passive income the additional revenue streams that I'm generating but no one really wants to hear about how much money you're making or the revenue streams that you're making they want to know what you do what are you up to what what are your interests so I know that I would lose that part at least which is okay I don't really care what people think about me all that much but I'm also the type of person who for me I may just be ambitious enough such that I don't really like the idea of leaving money on the table like if I wake up one day and I know that somebody's willing to pay me bucks just if I were to go in and go do something for them do a little bit of light coding or let's say that that maybe I even have a whole day free and I could go drive uber cars and I know that at the end of that day I could have an extra 500 bucks in my pocket just by driving uber cars around I might just go ahead and do that I don't know what else I would do with the day and that would be after the initial vacationing and travel I might do which usually gets owed within say like a month or so so to me the real trick is that passive income needs to be generating enough for you to actually abandon the nine-to-five for some period of time maybe forever even which would have to be a lot of revenue if you're just matching your day job or not even matching it I'm just not sure that's going to be enough for you to really leave behind your nine-to-five sacrifice your whole career and that potential career growth that could be accumulated over the next decade or two decades of your life for most successful people that I've seen who are generating passive income the goal seems that is not to just go sit down on the beach and just relax and retire early it's actually to continue to build even more passive income more revenue streams and just continue to build additional businesses that are self maintaining such that you can build say 10 businesses they're all passive income in some way right you don't necessarily have to be hands-on actively putting in all of your time every single day on all of these and you can just build multiple of these businesses but you're not necessarily retiring that's kind of a less attractive mindset right then just imagining that you'll be able to just go sit on an island somewhere but I think that that is probably closer to the reality of what a passive income life may look like because the fact is that if all you wanted to do was go to Southeast Asia like go Thailand you could probably do that now it's cheap enough over there that you could just go sleep on the beach and drink beer all day long if that was really what your goal was to do if you're interested in passive income you're going to want to become knowledgeable about the world around you for that I recommend you set yourself up with curiosity streams accom slash tech lead tons of fun documentaries that can open up your eyes to the world around you I particularly enjoyed that David Attenborough's life on earth in which he explained about bioluminescence and animals this was an eye-opening topic and keep in mind that curiosity stream was created by the founder of the Discovery Channel which is an amazed chenna I absolutely love that channel and it seemed like what he did was he just took that concept and modernized it for the internet digital era in which you can get all of the documentaries science nature math shows that you want stream to you in high quality in the cost-effective way just over your internet connection so check that out I'm getting you guys a free one-month trial curiosity stream comm slash tech lead that do it for me let me know what your top tips and experiences have been on passive income if you liked the video give it a like and subscribe I'll see you next time