10 Ways I Pay Myself While I Sleep
I used to have anxiety about my passive income, but then I reframed it so 1) I acknowledge my existing passive income sources (they are so "out of sight, out of mind" I forgot! And 2) found ways to consider other income "energies"; I.e. other areas of potential generation that happen at all hours. In other words, my ability to create lucky situations.
1. Retirement Investing
I have two main retirement investment portfolios through different tax management strategies. I check and rebalance annually or when there is a major market shift. Set and forget. Make the yearly contribution and move on. Will keep earning for 30+ years. (This is the one I kept forgetting about! It counts!)
2. Active Investing
Not retirement account based, so not tax advantageous, but I made some blue chip/growth buy and hold plays that work out great. When they double, I'll liquidate half and see if there are more opportunities to reinvest. Smaller percentage of net worth, but still a piece.
3. Treasury Bills
Rates are over 5% right now! I'm going to just reinvest my 4 and 8 week bills until rates go back down. Should compound indefinitely as long as I don't need to liquidate. It's like free money.
It's in a dark place right now, but I have ETH and BTC (and some DOGE 😝) stored securely and just hanging on. There's no way to really move this stuff securely right now, so it's just an illiquid asset I hope can be used in the future. Small part of overall net worth.
Home values continue to rise. Yes, there should be a correction, but I'm not moving anytime soon so my equity will go up along with my overall home value. Not concerned about being underwater. My community is growing like crazy. Demand far outpacing supply. Home ownership is not for everyone and I didn't buy as an investment. But, so far, it's working out as one.
6. Game Publishing
Right now sales are flat but hey, I'm not marketing anything! When I put the time in to get the message out, sales pick up. Technically passive because you can sell a PDF on a website 24 hours a day, but it's sporadic.
7. Network Effect
I continue to do well received work for my existing client base which consists of plenty of long time colleagues and contacts. That small network of powerful clients is "always on" - it's only a matter of time before they call me.
8. Asymmetric Time/Money Graph
This is the core principle of leveraging your mastery in a domain: you charge more for less time spent. Why? You've internalized the 99% of stuff everybody else wastes time grinding on and you can spend real time on the hard 1% that people really need you to. This is also known as "raising your rate" and why I advocate for not charging hourly - people pay for outcomes, not time spent on the job. The masters spend the least time and produce the best results.
9. Idea Lists
When I sleep I dream, when I dream, I create. When I create, I build. And I sell what I build.
10. Lifting weights
More muscle mass means more calories burned during rest and recovery. Which means my overall health is on a continuous positive track - I sleep and I lean out. My longevity and health span will respond in kind and I can live longer and better and this create and be of more value to the world.