– So I had a union job, a very safe job and I was making $70,000 a year with a guaranteed six figure income within five years but as soon as I learned this fact about money, I decided to quit that job entirely and today I’m going to teach that to you and what I’m going to show you today is the most important lesson on money that I have ever learned. I did not learn it until I was well past the days of being in high school or being in college and it’s too bad that you don’t learn this in high school because it would have dramatically changed the decisions I made up until that point. Now, luckily, I did learn about this when I was about 20 years old and so I had a lot of time to adjust my sales and do something drastically different with my life but I wanna show you guys this rule or this lesson today and I hope that this sparks something in your brain and makes you decide to also change your sales and consider doing something else other than what everyone else out there is doing in terms of going out there, getting a job, working that nine to five and I wanna explain that to you guys now.
So first of all, I wanna ask you if this formula here looks familiar to you. It goes something along the lines of this. You earn a certain dollar amount per hour times 40 hours a week and at the end of the week, you get a paycheck. I wanna ask you guys where did you learn this formula? Was this from your parents? Did you learn this in school? Where did you learn about this simple concept that dollar amount times time equals paycheck? I’ll share my experience with you.
I learned this from my parents when I was 12 years old and I decided to start a business doing some lawn mowing and landscaping for my neighbors and I was asking my dad, so how do I do this? He says, well, you have to figure out what you’re willing to work for per hour and then you’re going to work a certain number of hours and then you make your money at the end of the week or end of the day depending on the job. So I told myself my time was worth $10 an hour and I would work for four hours on a Saturday and I would make $40 and as a 12 year old, I was pretty happy but that was the very first time in my life that I instilled this in my brain that time equals money.
So let’s say that I decided to take that landscaping or lawn mowing job or business I had started and run with it and I decided that I wanted to work 40 hours a week at that job. Let’s say I did that through all of my teenage years and I made $10 an hour. So following the basic equation that you work a 40 hour work week and you work for $10 an hour, that means I would make $400 per week. Now, let’s say that I didn’t have enough money.
I wasn’t making enough money and I wanted to make more money. So if you’re unhappy with the amount of money you’re making, you basically have two options here because there’s two variables that control your paycheck. First of all, that is the time, the amount of time you’re spending actually working and second of all, it’s going to be the skill which is going to determine the hourly rate at which you are paid. So if you’re looking to make more money, there are primarily three different things you can do and I call this the bad solution, the better solution and the good solution.
So first of all, let’s start with the bad solution. The bad solution is to start working more hours and sacrifice more of your time in order to make more money. In my opinion, this is completely ludicrous. I would never wanna work more than 40 hours a week and why people do this is absolutely beyond me but I’ll share my personal experience here. I used to work at a job where I was surrounded by people who would brag about the amount of money they were making but they weren’t bragging in terms of oh, I went home and I started my own passive income business online or I’m doing dropshipping and I’m making two grand a month. They were bragging about the fact that they were sacrificing their nights and their weekends and sacrificing their family’s happiness in order to spend more hours working at that job and if you ask me, that is nothing to brag about but that is what these people did.
They sacrificed their time in order to make more money and that’s a very bad solution to this problem. I’m talking about people that would work 70, 80, even 90 hours a week to make $150,000 a year and it’s just why would you even bother doing that? Why would you sacrifice your time to make more money? Anyways, that’s the bad solution to this problem. The better solution is to learn a more valuable skill.
So if you’re making 10, $15, maybe $20 an hour and you’re saying I wanna make more money then you go out there and you learn a more valuable skill. Maybe you go to college, maybe you go take an online course and you learn how to do online marketing, something like that, whatever it is, you’re learning a more valuable skill which is going to increase the rate at which someone will pay you for one hour of your work but the best solution has nothing to do with this formula at all and in fact, the best solution is to follow a different model and the thing is so few people understand the fact that there’s a different model out there when it comes to making money because what this tells us here is that time is always a variable in the amount of money that you are making.
You either have to sacrifice more of your time or figure out how to make more money per hour that you are working but you can make money in ways that do not involve your time. So when I was 20 years old, I started exploring different ways to make money. I read books like Rich Dad Poor Dad by Robert Kiyosaki. I read a book called Click Millionaires, all about how people became millionaires off of the internet and I started thinking about the type of income I was earning and that’s when I learned that I was earning something called active income and what that meant is I only made money when I was actively working. So for those eight hours a day, I would make money but on the weekends and on the off hours, I made absolutely $0 and the major flaw with active income is that your time is always involved with this type of income.
That is when I started to learn about something called passive income and I know people right now are gonna say, yeah, no shit, Sherlock, I know what passive income is but have you ever really thought about it? Have you ever really thought about the fact that you can put in effort today and build something that will pay you every single month, every single week or even every single day for the rest of your life but so few people are actually willing to put in that initial work today to build a passive income stream but I told myself I was willing to put in that effort and do whatever it takes to earn passive income and get out of this trap of earning active income.
So let me explain it to you this way. Passive income is very simple. You’re earning money off of your past effort. So your past effort determines your paycheck. Now, I’ve always enjoyed making videos and talking to people and learning and exploring new ideas so I decided that a YouTube channel would be a good way for me to make passive income. It makes sense. I’m making money off of videos I’ve done previously. I make money from ad revenue. It results in sales for my membership site and my course as well and all of that is based on my past effort. My course that I put together that I still make money from is one that I made many months ago but I still make money because I’m being paid for my past effort.
That is what passive income is. Now, how passive is my business? I wanna answer that question very simply and here’s how I answered this. I took a look at just the ad revenue for my YouTube channel and I decided to split up the percentage of the amount of revenue I’ve made in the last seven days and what percentage of that came from the videos I posted that week versus ones I’ve posted previously and what I found is that 17% of my ad revenue came from the videos I had posted that week and 83% of my income came from my past effort, the past videos that I’ve posted that continued to get the views. If that doesn’t motivate you and get you excited, I have no idea what will, guys. I just want you to understand there’s a lot of different ways out there that you can make money and a lot of them involve the internet and if you have any thought in your mind that you have the idea of starting a blog or starting a YouTube channel or starting a podcast or anything like that, just fucking do it, alright? I know it took me a long time to really start doing this but there’s so many opportunities out there and this is such a new area as far as building a channel and building an audience online and personal branding and all of this and being an influencer and sharing your message with people and I know there’s always the argument of oh, is it too late to start on YouTube? Well, if I told myself it was too late back in 2016, I wouldn’t have a six figure online business right now.
So to answer the question of is it too late, it’s never too late until the platform is shutting down. If you logged on tomorrow and YouTube had a message on the homepage that said YouTube is closing, we’re shutting down forever, okay, maybe it’s too late now but until that day comes, it’s never too late to start something. It’s never too late to start earning passive income online and I know the excuse that some of you are going to give me right now is the fact that not everyone out there can start a YouTube channel because if everyone has a YouTube channel, nobody will have the time to watch it but what I wanna ask you is how many people do you think are actually even watching a video right now about how to make more money because last time I checked, about 90 to 95% of the people out there are asleep in life.
They don’t have any idea what’s going on around them. They have no idea they can make money in other ways. They’re on autopilot going through life. Now, of those small amount of people that decide they wanna learn how to make more money, what percentage are actually going to commit and put that effort in and decide they’re going to commit to making money online and actually see it through? We’re talking about a fraction of 1% at the end of the day as far as people who actually watch a video like this, take action on that advice and stick with it and so for those of you that say not everyone is going to be able to have a YouTube channel or build a following, not everyone is willing to do it. A very, very small percentage of people out there, a fraction of a percent are actually willing to do what it takes and build an audience online and earn passive income.
So that is the lesson that I had learned. I learned it when I was 20 years old. I learned about the difference between active income and passive income and I decided that passive income was a much better model and I structured my life around earning passive income and I recommend that you guys consider doing the same thing. Anyways, guys, that’s gonna wrap up this video. If you guys enjoyed this, if you wanna hear more about my business, how I make money and other ways you can make passive income, drop me a comment down below and I’ll be sure to incorporate some more videos like that.
It’s a very interesting topic for me but there’s just so many different opportunities out there and I know a lot of people are itching to do something else out there or they’re struggling or they’re not making money or they’re not making enough money and you need to start thinking about a different model that you’re following and not this model of earning active income but thank you so much for watching, guys. I hope you have a great rest of your day and I will see you in the next video. If you are interested in learning more about investing in the stock market, I’ve created a free course just for you. The link is in the description below. Here are a few other videos you might enjoy as well. (calm music).
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