Someone once said (I can’t remember who and I’m not that bothered to Google it, but I think it may have been Warren Buffet) that you will never be rich until you learn how to earn money whilst you sleep.
And do you know what? That very wise person (whoever s/he is) is 100% correct.
If we see a website or an advertisement with the title, ‘Make Money Whilst You Sleep!’, we immediately think ‘SCAM!!’. The red flags wave, our defenses go up, and we quickly close the tab and go elsewhere.
A lot of people believe that making money whilst you sleep is impossible. And I don’t blame them, it does seem very far-fetched, and I didn’t believe the concept either …
…until I managed to do it myself!
Yes, I earn money whilst I sleep.
One of the first things I do every morning is check my phone to see how much money I made the night before whilst I was cuddling my dog and getting my 8-hours of beauty sleep.
(…and yes, my dog sleeps in my bed. Don’t judge 😅)
Trading time for money
The current way that most people earn an income is by trading their precious time for money.
They spend, on average, 8-hours a day loaning their time to help someone else get an assorted number of tasks completed, and in return for their time, they are compensated with cold hard cash.
The size of the compensation package is dictated by the complexities of the tasks in which that person is hired to do, and the skill level that is required to complete said tasks.
In these arrangements, there are only two ways in which you can increase your monthly/weekly earnings.
1. Work more hours
2. Get paid more per hour
Let’s look at the problems with both of these.
1. Work more hours
The obvious restriction here is that there are only 24 hours in a day and it is impossible to work 100% of them.
You still need to factor in time for sleep, showering, eating, and other tasks that must be done regularly.
At the very most, you could work 14 hours a day, every day, but what’s the point in all that work if you don’t ever get the chance to do anything else?
2. Get paid more per hour
You have a couple of restrictions here.
The first is your current skillset. If you want to get paid more per hour, you’re going to have to spend extra time and money improving your skills in order to make yourself more valuable to an employer.
The second restriction is the industry that you work in. Depending on the economics and price points of that industry, there may be a cap on how much you could potentially earn.
So, although increasing your hourly rate sounds like the way to wealth, as you can see, this will only take you so far.
A dead end
Taking both of these points into consideration, in a general employed role, even if you work 14-hours days and obtain the maximum per hour remuneration for your time, you will struggle to generate any real wealth.
Because it’s not scalable.
The secret is scalability
Being able to detach your money from your time will enable you to scale.
In other words, you will have the ability to increase your income without having to increase your workload or the demand on your time.
For example, take this blog post. I only had to write it once. It can be read one person, 10 people, 100 people, 7682 people, or 1million+ people. It makes no difference to me, I still only had to write it the once.
Another example; I create a book and publish it via Amazon’s print-on-demand service. I get paid £5 for every book that is sold. I could sell that book to 10 people (and earn £50), 100 people (£500), or 1000 people (£5000). It makes no difference to me, I still only had to create the book once.
(That second example is actually one of my passive income streams. I have several books on Amazon which relate to my other website howtodressage.com)
How do you detach your money from your time?
So, now we know why we want to detach our money from our time, the next question is how.
This is the hardest part, and it can be a difficult and long transition to make, especially if you are used to the normal 9-5 grind with a monthly paycheck.
My best advice is to start by looking at passive income streams. By their very definition, passive income streams are detached from your time.
- Writing a book – ebooks or paperbacks (see above example)
- Creating a course (I read and reviewed a book about this topic)
- Online advertising (Google Adsense)
- Affiliate marketing (I have a guide here)
- YouTube videos (combined with advertising and affiliate marketing)
- Host a podcast (combined with advertising, affiliate marketing, and sponsorship)
- Create a blog (combined with advertising and affiliate marketing)
- Investments (stock and shares, bonds, insurances, business investments, etc.)
- Property investments (aka ‘real estate’ for those readers who live across the pond)
It will not happen overnight
You may have noticed that those passive income streams I listed above require you to lay out a lot of time upfront first.
For example, writing a book is not a 5-minute job. It could take you a few months or possibly even a few years! But once you’ve written it, you wrote it, and it can create a steady income stream for you for many months and years to come.
I published my first ‘How To Dressage’ book in 2018. The year is now 2021 and I still continue to earn money from it every single month.
So, be preapred to take things slowly. Don’t go quitting the day job just yet, but start thinking about ways in which you can create passive income streams that will pay you whilst you sleep.
Work on these projects in your spare time, and before you know it you will have replaced your monthly income. You can then quit your job, make money whilst you sleep, and continue to scale your income.
The end result is that you’ll be one of the very few people who can say they have BOTH time AND money.
It’s not an easy thing to do, but it’s worth the effort.
P.S. Let me know if you have any questions. Detaching your income from your time can be very difficult to get your head around in the beginning, but basically, you’re focusing on creating passive income streams.
- The Truth About Passive Income
- How Reading Can Make You Rich
- The Trading of Time
- 20 Jobs You Can Do Whilst Travelling