How To Get Rich
A few drips of water from the pipe under your sink hardly seems like a big deal, but a month later it may may have caused a whole bunch of damage.
You can’t see your hair and fingernails grow, but each month they require your attention for some trimming.
To you it’s just a home, but due to appreciation it could magically be worth $100,000 more when you wake up five years later.

Photo by brtsergio
What’s the point? There is great power in things which “just happen” whether you focus on them or not - even if they happen very slowly.
This is true because we have a limited amount of time and mental energy to use each day. It is our most precious resource.
Most people use that time and mental energy in exchange for money. The problem is that they must continue to trade their time and energy every time they want to earn more money. Why don’t more people focus it on building something that will generate passive income - income that happens whether they focus on it or not?
The answer is simple, they don’t do it because the initial results are pitiful! You could spend a TON of time finding/buying/fixing/leasing the right piece of investment real estate or getting a passive income business going, and in the first month be left with a measly $50 in cash flow. It hardly seems to make sense. Meanwhile someone else working a job that month could have brought home $5,000 for the same amount of hours and made you look like a fool!
But they would have missed the power in what you did, and that’s why most people will never be rich. Sure, it’s only $50. But you’ve now created something that will happen passively. It will happen whether you pay attention to it or not. You have created that leaky pipe - except now instead of ruining the floor it is filling up a bath tub (your bank account). You’ll come back some time later and that drip will have been working for you the whole time.
Here’s the best part: your time has been preserved. Since you still have all your time and mental energy at your disposal, you can go off and create another drip. With two drips working for you, you can go off and create a third, etc.
One day you’ll wake up with an army of drips working for you generating all the cash you’ll ever need, and your unfortunate counterpart will still be spending his time and mental energy to get a paycheck that month. Meanwhile, your time and energy will still be preserved to focus on whatever you’d like (more drips, charity, culinary school, curing cancer, writing your auto-biography etc).
You might look like a fool up front, but preserving your most precious resource (time and mental energy) by building passive income streams is the besy way to get rich.
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Andy @ Retire at 40 said,
Wrote on November 22, 2008 @ 1:57 am
I love the analogy of a dripping tap for passive income. I agree with you, it’s the joy of waking up from a good sleep to realise that your income has increased all the while you were catching 40 winks.
[Reply]
Brian Armstrong reply on November 23rd, 2008 4:12 pm:
Hi Andy, I know what you mean…my favorite thing to do in the morning is wake up and see that I made money while I was sleeping (Book sales, tutoring site, etc). It’s a great feeling - and even better if you take off to another country for 6 months and come back richer.
[Reply]
Matt Thomas said,
Wrote on November 22, 2008 @ 4:30 pm
I agree, that is a good analogy.
I also completely agree about the apparent immediate attraction of the short term gains associated with working for a salary. However it means that you have to work to MAINTAIN your pay. What makes entrepreneurship so attractive (that those that choose to work do not realize) is that you have the flexibility to work only to GROW you income and you can have others work for you to maintain your business’ revenues.
[Reply]
Brian Armstrong reply on November 23rd, 2008 4:11 pm:
Thanks Matt, that is a good point!
[Reply]
How I (Almost) Accomplished My Passive Income Goal For 2008 said,
Wrote on January 6, 2009 @ 4:53 am
[...] you are curious why passive income is such a big goal of mine you can read this and this for some background, but essentially it boils down to this: if you no longer have to trade [...]