At the risk of causing a mini-riot, I would like to state a couple of my beliefs about money. These claims might make some people turn their noses up, or worse, stick their middle fingers up – but stay with me:
- Money is the root of all good
- Passive income exists, and anyone can attain it by building assets
I have made it one of my burning, passionate, determined aims to change people’s negative views on money, as I believe that this understanding is one of the most important qualities of a successful entrepreneur. Too many people seem to think that money is a bad, corrupting, negative presence in the world, but while there are certainly evil things done due to money, there are also countless altruistic, charitable, life-enhancing acts delivered by and sometimes in the name of money.
Appreciating that money is a force for good is deeply important for a healthy entrepreneurial mindset.
What is money?
Money reflects humanity’s interconnected aims and desires. We as a species rely on each other, and an exchange of goods, services and ideas was present way before money came into existence.
The truth is, money is an ethereal mechanism for moving human energy around, and to encourage bonding and exchange between people and successful entrepreneurs. When you give someone money, you are putting your faith in that person to provide value, and they are receiving your energy (via the method of giving money) to cement that transaction, and offer fair exchange.
Money is a catalyst for productivity, and therefore like any universal concept such as the internet and language, can be used for both good and bad. The trick for a successful entrepreneur is to take care of both yourself and those you love, as well as for the universal good.
The goodness of money
Consider this: nearly all the best universities in the United States were set up by a philanthropist and benevolent entrepreneur, such as Andrew Carnegie and Cornelius Vanderbilt. There is also charity, foreign aid, disaster relief and ethically-driven developments in medicine such as Bill and Melinda Gates’ drive to rid the world of polio.
Being a millionaire does not make me a bad person, because as well as improving my own life, I can use millions of pounds to help worthy causes. I also frequently run competitions for other entrepreneurs to win thousands of pounds, as well as donating here and there throughout the year.
To cement our aims to do good as well as to make money, my business partner Mark Homer and I have just set up the Progressive Property Foundation, and last year we gave nearly half a million pounds to Sue Ryder and Cancer Research. If I was skint, would I be able to do that? Of course not.
Please don’t think that I’m saying this to get fans; I’m just saying that if I was skint, I couldn’t do this, and an important quality of a good entrepreneur is to appreciate this fact and follow through with it.
Now ask yourself: what is one of the main ingredients of my entrepreneurial mindset that enables me to raise this kind of money?
My drive to build passive income.
Passive income DOES exist
Another claim that I am often driven to dispel is that passive income doesn’t exist. There is a polarising debate about passive income, mainly because we all want to earn more for working less, and some entrepreneurs struggle to believe that this is possible. And there’s a funny thing that I’ve learnt when I’ve researched and put in my due diligence about those who deny passive income: they don’t have much money.
The reason that I tell people about the kind of money that Mark and I make through our businesses isn’t to brag or belittle other people’s efforts: it’s to demonstrate that we know what we are talking about, that understanding passive income is an important entrepreneurial quality, and that we desperately want you to make more money too!
So let’s look at how, over time, you too can achieve passive income.
Making passive income
Passive income is generated by a successful entrepreneur’s assets, and by leveraging your workload.
Assets include properties, stocks, and bonds. They also include books, audiobooks, a licence, a franchise, IP, songs, and more. So first you work out what assets you want to drive towards, then you build them, then you systemise them, then you manage them, and then you step back, and you are liberated while still making money.
As you move up the scale up to management, the workload at each level should drop by degrees. Now, I always say that one of the qualities of a successful entrepreneur is to work hard enough to be able to work less, so right at the top of the tower you might find that I no longer have to work to generate my income from a particular asset, or that I work a shorter amount. For example, with a 38-room conversion that we have recently done, my business partner Mark Homer manages the process, and then below him there are the contractors, builders, letting agents, architects, and so on. If Mark manages and oversees for 10 hours per week, one level below him might have to work 15 hours to do their share of the work, and below them 20 hours, and so on.
Mark is willing to manage processes like this and give me half the profit, because I spend more time on the education side of Progressive Property. But as well as doing what I do, we also have 70 in-house staff and about 150 part-time staff, so in total we have over 220 people running our training business, meaning that I don’t have to.
Anyone with a driven entrepreneurial mindset will know that you work hard enough not to have to work hard, and if you’re smart enough you can reduce the time, wastage and mistakes by working smart instead of hard, and leveraging the work.
Passive income and doing good – tying the two together
As regular readers may have read and heard in a recent podcast and blog in which I had the privilege of interviewing Richard Reed of Innocent Drinks, altruism is more commonly being knitted into the fabric of well-run businesses.
The best aspect of making passive income is that it gives you more time to focus on the things you are most passionate about, meaning that you can use your money as a force for good as well as for yourself. So work hard at first, then work smart, and make sure that you are not only delivering value for yourself, but also for the causes that improve life for the rest of the world.
How do you ensure or plan to ensure that you put money at the root of good things? How did you or do you plan to make your passive income? Let us know below, or join the conversation on at www.facebook.com/robmooreprogressive
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