Take The Passive Income Ability Quiz

It’s a magnificent Monday evening here in Honolulu, and I’m going to invite you to Take The Passive Income Ability Quiz!!!

Answer the questions below and see how much you understand about passive income:

1) John goes to work and gets a surprise $3,000 end of year bonus. He is super excited!!! Is this bonus passive income?

0 = Yes
1 = No – if he didn’t work, then he wouldn’t have made the bonus. Passive income comes in without working.

2) Susie took a financial education seminar, and learned how to trade options. She spends about an hour a day studying and then putting in options trades. She’s happy that she’s started to make an extra $500 – $2,000 each month. Is this extra trading income passive income?

0 = Yes
1 = No – If she didn’t trade the options, she wouldn’t make any money. Passive income comes in without working.

3) Abigail has been in a Network marketing company for about 1 year. Through hard work and dedication, she has built a team that has finally started to bring in their own business without her direct involvement. Her commission checks of over $10,000/month are coming in and she’s now putting in only a few hours a week, (except for the quarterly live events where she is busy for 3 days pretty much non-stop) where she used to put in over 40 hours a week. Are her Network Marketing commissions passive income?

0 = Yes
1 = No – if she stopped working her business, it would eventually die off – Passive income comes in without working.

4) If you have a business and work it only 1 hour and make $30,000 that month, is that passive income?

0 = Yes
1 = No – if you didn’t work the hour, you would make nothing. Passive income comes in without working.

5) Ken made a commercial 10 years ago and he still gets commission checks sent to him monthly. Is this passive income?

1 = Yes – Ken is not working for his commission checks, they come to him even if he takes a year off to travel the world.
0 = No

6) Your kids create an app for the Iphone that helps people record names of the people they meet, and then tests their memory to make sure they remember their names. The app is selling and your kids bank accounts are growing while they are still in high school. Is this money passive income?

1 = Yes – Your kids are not working for their sales after app is created (unless they still have to work to maintain and update it), they earn money while they are being high school students.
0 = No

7) Zeus has a whole life insurance policy that he pays into annually, and it has annual dividends that accrue to his overall cash value in the policy. Are these dividends passive income?

0 = Yes – it’s not passive unless you paid a 1 time premium, but this contract requires you to pay annually, so you still have to spend time to make the money
1 = No – if you stop paying the annual premium, your insurance contract ends and the dividends end too.

8) Luke buys stocks that pay dividends and pays himself the dividends monthly and quarterly. Is Luke making passive income?

1 = Yes – if he died, the stocks would still pay dividends and would be transferred to his heirs.
0 = No

9) Charlotte has a business that she inherited from her Dad. She knows nothing about it’s operations. All her father’s people are still running it, but she is getting monthly checks. Is she making passive income?

1 = Yes – If she died, the business and its income would be passed on to her heirs.
0 = No

10) How much passive income do you make and pay yourself on a regular basis?

Each dollar you make is a point (if you make $10.00/mo in savings interest then that’s 10 points)
0 = None

A lot of people want to be wealthy, but they end up working so hard they miss out on their families, their health, their sanity.

The reason is that they get caught up in thinking they have to work for money, instead of having money work for them…and that’s a big mistake!

The secret of the truly wealthy, the ones who actually have free time, and who choose how they want to live their life, is that they focus on creating passive income.

Passive income is money you make without spending time working.

Questions 1-9 are to help you understand what passive income is and what it isn’t.

The higher your points, the more you know about passive income =)

Question 10 is to help you understand if your ability to create passive income is in your head only, or if you are actually materializing passive income in your life.

How did you do?

Conclusion

Back in 2011 I had over $30,000 in credit card and line of credit debt, was living paycheck to paycheck and was stressed out over my lack of success in my financial life.

In April of 2016, I became debt free and had a monthly passive income stream. I quit my job on December 23, 2016, and started doing my dream work of mentoring others on what I did to create the freedom to quit my job.

In 2017 we bought our first condo in Waikiki, and we went on 5 weeks of vacation (including a 7 day cruise to the Mexican Riviera)!!!

I spend most of my time doing what I dreamed of for years, spending my days with my son Jordan and my husband Jomel, enjoying motherhood and being a wife. I also enjoy researching Financial Freedom and sharing what I learn with my clients and on my blog.

If you want to learn more about how I can help take back control of your money and your time, then CLICK HERE, watch the free video and get started!