Business By Hormozi #207: Learn How to Make Money While You’re Awake Before Trying to Make It While You Sleep

The Right Approach to Wealth Building

Many entrepreneurs and aspiring business owners dream of making passive income—earning money while they sleep. But there's an important truth that gets overlooked in this hustle for financial freedom: you need to learn how to make money while you’re awake before trying to make it while you sleep.

In the pursuit of wealth, it's crucial to crawl, walk, and then run. Passive income is an amazing goal, but it requires a solid foundation of active income first. Without understanding how to earn actively—whether through a job, business, or service—you’ll struggle to build the systems needed to create passive income streams later.

Crawl: Master the Basics of Earning

The first step in building wealth is learning how to make money actively. This means putting in the time and effort to develop a skill set, find clients or customers, and earn money consistently through work. You can’t expect to jump straight into passive income without a reliable source of income to sustain your financial journey.

Crawl by mastering the basics. Whether you're learning to sell a product, provide a service, or develop a skill, your focus should be on becoming proficient in the active ways of earning.

Walk: Build Your Income Streams

Once you’ve gained experience and established a reliable income, it’s time to walk. This means expanding your efforts and building a system that works for you. Whether you’re launching a side business, investing in stocks, or scaling your income, now is the time to create a stable foundation for your wealth. You can’t leap into passive income ideas without mastering the active part first.

Start small and build gradually. As your income grows, reinvest it into areas that will work for you in the long term—creating a diversified portfolio of investments or ventures that generate income while you sleep.

Run: Create Passive Income Streams

After you've learned how to make money while you’re awake and built reliable income streams, it’s time to run. You’re ready to scale and explore opportunities that allow your money to work for you even when you're not actively working. This could involve investing in real estate, dividend-paying stocks, or creating digital products that earn money passively.

By this point, you’ll have the resources and the skills necessary to navigate the complexities of passive income generation. But don’t rush the process—remember, it’s a journey that begins with crawling, moves into walking, and only then allows you to run.

Conclusion

Building wealth doesn’t happen overnight. The path to financial success is a journey where you must learn to make money while you’re awake first. Only after you've mastered the art of active income can you move on to creating systems that generate passive income. The key to long-term success is to crawl, walk, and run—and understand that every step builds the foundation for the next.