How Hillary Adams taught her 12-year-old the Concept of "Passive Income"

Money, income, bills, investments, is the sheer thought of them make you want to shriek in disgust, curl up into a prickly ball? What an advantage to those with reliance on advisors of financial savvy, early on in their lives, with the rest of us still trying to make some sense of it, even today. How many times did the thought strike you 'I could be rich now, if only all these facts had come to me as a kid, or at least much earlier...' Why then would you let your kid(s) experience the same...

Money, income, bills, investments, is the sheer thought of them
make you want to shriek in disgust, curl up into a prickly ball?

What an advantage to those with reliance on advisors of financial
savvy, early on in their lives, with the rest of us still trying
to make some sense of it, even today. How many times did the
thought strike you 'I could be rich now, if only all these facts
had come to me as a kid, or at least much earlier...'

Why then would you let your kid(s) experience the same lack
of practicable financial strategy?

Hillary Adams, a former white collar worker, felt the same, every
time her son asked her for an advance. All her talking about not
having enough money and his having to be more careful with his
spending did not seem to be understood by him.

She needed facts and a way of demonstrating, and soon.

About the same time she quit her job and went into business for
herself, she began digging for a sensible solution.

First, in her research and many a night spent in books, she
discovered the term 'passive income' and a fascination with its
concept.

Passive Income? Does it mean it just 'sits there'? Or,
regardless of what one does, it's inactive?

Not exactly. Passive income is cash-flow obtained without linear
time involvement. In other words, while you sit on the porch
knitting, your passive income is generated, non-stop. All you
had to do, is the work once.

Now, secondly, Hillary, after discovering the concept, thought
of all the benefits this way of doing business could include
and began to motivate herself for several days into finding a
way to make a small investment on behalf of her son with a very
important 'switch' in mind.

Listen to what she did.

She bought a small table-top game machine. As the contraption
was delivered, and she and her son Aaron unwrapped it, she let
him try it out, play with it, answered his questions, and finally
told him: "Aaron, this machine is yours. And even better, all the
money it's going to make is yours. However, I am only able to
lend you the $227 it took to purchase the machine for a little
while. You must pay it back. I'll help you set up the machine
the rest is your business. Now, honey, tell me, can you do it?"

Aaron thought for a minute. His answer surprised Hillary: "Mom,
I don't know if I could do it by myself. But with you there, I
guess so. And after that,...yes, mom, I guess I can do it."

Thirdly, as they set up the machine in a few days, and
impatiently waited for their first cash pick-up day to arrive,
Hillary noticed the benefits of her actions had already begun to
materialize and she was quite pleased.

The exciting 'Switch' she had intended had taken place, from her
son's waiting to be given money to his own plan of action, from
'give me' to 'I can do it MYSELF'. His attitude, after re-paying
her the amount for the table-top game machine would now be the
one of a responsible business person. Now that he had done it
once, he would always be able to do it. He would not remain in
the "poor" thinking mode.

He would eliminate the feeling of lack of money from his life,
while he now had the self-esteem and confidence to invest the
surplus of his machines, after purchasing a few more, in his
very own college fund.

The moral? Without looking, you don't find. Such a small change
is bound to turn Aaron's life around, for he is already on the
way to becoming an accomplished business owner. "How old is he?",
you ask? He's only 12 years old.

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