Passive Income - The Importance Of Building A Base & The Dynamics At Work
The Forever Elusive Dream
Passive income is the apex of income generation, or at least I have always thought so. It’s the one form of income everyone desires, and yet so few choose to make it a priority or even dedicate any time to it at all. It all sounds rather strange, doesn’t it? However, that’s exactly the way it is. Very few embark on a journey of discovery and passive income generation. They choose to view it as a mystical elusive dream that, for the majority, is unattainable.
Like anything else, establishing and building a form of passive income is hard work. I like to think of this process as the building of a dam. Working for a salary is very much transactional. In other words, you trade X amount of hours for X amount of income, or payment. Essentially, this means that you are forever stuck in a scenario that requires the exchange of your time for money. It’s like having to go outside and catch water every time it rains.
On the other hand, this could be done away with by the building of a dam. However, it’s going to require a fair amount of hard work and dedication. Setting up a piping infrastructure is another crucial aspect that needs to be considered. However, once complete, it will provide an ongoing supply of water and eradicate the continuous accumulation of water. This is exactly what passive income provides, only it’s in the form of capital and not water.
It’s not an elusive dream, but it can be a lot of hard work… and will often require years of dedication and effort. Similarly, a dam and its accompanying infrastructure take years to build and put into place. This is where many seem to “miss the concept”. They tend to think that passive income somehow “just happens”. They are unable to envision an initial building phase. However, this phase is imperative and plays an enormous role in growing your passive income.
Establishing A Base
Building a base, in terms of passive income generation is the foundational dynamic that goes on to create additional passive income. Essentially, a shrewd investor will look at building a solid base, and then look at further leveraging and utilizing this income to create and establish even more passive income streams. In other words, not only do you build upon this base, but it also works to provide the materials (capital) to work with.
This is where WEB3 and Crypto, in general, provide an opportunity for anyone to begin building a base. Being able to utilize and leverage the incentivized economy is a game changer, and provides the opportunity for pretty much anyone to begin building a passive income empire, that will eventually serve their life, in some way or another. Considering, that these are still very much the formative years of this technology, makes this idea even more exciting.
Final Thoughts
Passive income has the potential to enhance, and even completely restructure your financial life. In my opinion, it’s imperative, to in some way be building some type of passive, or even residual income. Ongoing income that no longer requires work, effort, and time is exceptionally powerful, especially in the current economy. There are so many opportunities that one can make use of to begin the building process.
Investors can also choose to add disposable income to the mix, to accelerate and beef up the process. Finding ways to enhance and maximize the building of your passive income base is another adventure in and of itself. Enjoy the journey! Catch you next time!
Disclaimer
First of all, I am not a financial advisor. All information provided on this website is strictly my own opinion and not financial advice. I do make use of affiliate links. Purchasing or interacting with any third-party company could result in me receiving a commission. In some instances, utilizing an affiliate link can also result in a bonus or discount.
This article was first published on Sapphire Crypto.
