Making Money

In order to exist in comfort in today's civilized society, making money is a priority. Whether you earn money from your job or running a business, you need it to pay your way through life.

Having sufficient funds in your bank account makes it possible to pay for your home and cover all your household bills, buy food and clothes for you and your family, drive a decent car and send your children to school among other things.

Whatever you think about money, the harsh reality is that when you have enough of it, life can be quite pleasant. When you don't have enough, life can get tough.

Therefore, it makes sense to make sure you have enough of it at least to live your life in relative comfort.

Money Matters

If that's all there was to it, I could end this article about money right here and you could go on to doing something else.

However, that's not the end of the story. Having just enough money to pay your way through life is reasonable and even desirable, but having more can change things a lot.

Sure, we would all like to have a surplus of cash to buy stuff we wouldn't ordinarily be able to afford. But how does a person create extra cash when they are kind of limited to what they can earn from their job?

For many people, getting a second job is the only way they can afford to stay ahead of the constant bills and debt repayments, never mind making excess cash for nice things.

After all, there are only enough hours in the day to devote to working. After that, a person has to sleep at the very minimum!

Passive Income

What if you could generate more money without working so many hours each day?

You could, if for example you knew how to make money online using your computer or laptop or even a tablet or smartphone (more on that later).

That very question has a habit of dumbfounding most people, because they're locked into the mindset of:

"You've got to go to work to earn money."

For most people, as far as they can understand, going to work is the only way they can earn money.

It's so sad that there is just not comprehension of looking past the "job" mentality to see a bigger picture where there are many more opportunities to make a lot more money.

The first place to look is their own employer.

I don't mean the person that sits in an office and manages the company's staff. That's a manager who is just another company employee who earns a bit more than the regular workers they are in charge of.

Many workers who are at the bottom of the ladder in a company aspire to get a job as a manager, because it means better wages for taking on more responsibility but with less hard work.

This describes the classic "career path" system most companies work on.

Owning a Company

What I'm talking about is the person who actually owns the company. This person is someone the workers rarely ever see, likely because the boss is rarely ever present at the company premises.

The boss is more often than not to be found on the golf course, doing business with other bosses of other companies.

They don't often ever appear to do any real "work" yet they make a lot of money thanks to their position as owner of the business. What's even more likely is the boss probably doesn't pay much, if any tax!

This concept messes with most people's heads. That's because we've all been taught from an early age that you've got to go to work and earn money, then the government will take a percentage of your wages from you in taxes.

So how does a company owner, who obviously makes much more money than the employees, pay less (if any) tax than they do?

That's the subject of another article that I'll put up later. However, what we're interested in here is how does the boss make so much money when they don't seem to do any actual work.

It's called passive income and that means earning money without actually working for it or putting in any time to make it. It's money that is generated without the need to spend time and effort to keep it flowing into your pocket.

How to Earn Passive Income

There are a number of ways to get the passive income stream up and running.

The first and most obvious is to own a company that has employees that generate the company profits. A big chunk of those profits goes into the boss's bank account without them physically doing anything or spending any time to earn it.

Of course, not everybody can be a company owner. Fortunately, there are other ways of making income passively.

Outsourcing

One way is to work smart, by outsourcing your work/ Here's how that works:

Say, for example that you work as a freelance software developer, creating software solutions for a variety of companies that pay you to provide software packages for their businesses.

What usually happens is you will meet with the relevant people at the company that tell you what they want, you provide an outline of what you'll give them and you'' both agree on a price for your services. Say, for example you agree to be paid $10,000 to deliver a working software package within four weeks.

You leave the meeting with two options.

1. You can do all the work, developing the software yourself. You estimate completing the job in four weeks if you work eight hours a day, five days a week.
2. You can outsource the work to a software developer in a country where the cost of living is much lower than yours. You agree to pay the person $5,000 to deliver the software package inside 3 weeks, giving you some leeway if they are a day or two late in completing the task.

The first option is what most people would take, because they will get to keep the full amount of money. It's the kind of work they do and they are good at and they even enjoy to a certain extent, being able to work from home without having to report to a supervisor or boss.

The second option is what I would take, if I were in that situation.

Why, when it means I get to earn only half the money?

Time is Money

I would choose to outsource my work every time, because not only does it free up 40 hours a week of my time for 4 weeks, it leaves me free to find more work from multiple sources.

Assuming my expertise is in demand, I could, theoretically for this example, accept four similar contracts in those four weeks, each paying me $10,000. I would outsource all the work, and pay the people $5,000 each.

I would earn $40,000 and pay out $20,000. My profit for the month would be $20,000 for which I did no actual work.

The people that did the work would be happy because the $5,000 I paid each of them probably represents a very good income in their own country and they would be happy to do more work for me in the future. This also ensures they will do a really good job to make sure I send them more work.

See what I did there?

While this is a hypothetical example, it is something that occurs frequently in the real world, every day. People really do take on contracts for a large amount of money and outsource their work for much less, keeping the remainder for themselves without having to do any work.

While this is not entirely passive income, as I would still have to spend some time going to meetings to obtain the contracts and then spend more time finding outsourcers to do the work, I still free up a lot of my own time and still get paid.

Passive Income Online

There is another way to generate passive income using the Internet as the vehicle to make money.

This involves some upfront work in creating suitable websites designed to earn commissions for selling products from a variety of vendors.

It also involves a steep learning curve in that respect, as well as learning how to promote your websites to attract visitors that will be likely to buy from the advertisements you place on its pages.

Affiliate Marketing

It's called Affiliate Marketing and is simply described as directing a potential customer to a seller's sales page through a promotional link on your own website, for which you earn a commission on the sale.

Once your website is set up and placed in front of potential buyers, the income it generates becomes passive. This is because you do the work once to make on-going multiple sales from the same page for as long as the web page stays in front of buyers.

There are costs involved in this kind of marketing, just as there are costs involved in any form of money making. But the profits that you make in excess of these costs is what makes this a potentially lucrative way to make money passively.

I'll expand on the process of how affiliate marketers make money in a separate article, that will be linked to below.

Summary

Making money passively using one or more of the examples I described above is an honest and legit way to increase your income to the point where you make well in excess of what you need to cover the general costs of living.

It can be pushed to such an extent where you can make way more money than you need just to live a comfortable life. It can provide true financial freedom by enabling you to free yourself from all debt and pay for the luxuries in life that you may believe are only reserved for the ultra-wealthy in this world.

Like all things in life, there are no guarantees that you will be successful. Earnings represented in this article are for example only and are not true representations of what a real person may earn, although in a world of endless possibilities, anything is possible!

For more information on making money online, please visit: https://moneymakingpillars.com

Posted: October 9, 2022


Take a look at the instructional video on making money from Forbes below:

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