Passive income is all the craze these days. So naturally, everyone wants to know what passive income is and how to get it. And why wouldn't they? The idea of firing your boss and living the life you always wanted would be a dream come true.
This article will explore what passive income can mean for your life and what to expect on your journey. To get into details of different passive income methods, you can explore specific articles on my website. Still, for this article, we will explore the journey and what realistic expectations you should have.
Table of Contents
Just What Is It?
Passive income is income that requires no activity, or at least very little to generate it. Many people will argue that there is no such thing as passive income because it takes work to create it. Passive income does take work initially, but the work activity declines over time, and eventually, it becomes passive income. A good example would be the writer who spends a year writing his novel, getting it published, but royalties start coming in once it is out there. From then on, it is passive income, but it took real work to get to that point.
Why Does Everyone Want It?
I contend it is the lifestyle people seek, not the passive income. The lifestyle I am speaking of is the following:
- No boss
- Work from home
- Nice things (house, car, clothes, toys, etc.)
- Don't have to deal with office politics
- No long hours
- To be appreciated
- Spend time with family
There are plenty more, but I think you get the idea. So to get the lifestyle, you need income, and it must be passive. Even the best high-paying job won't give you the lifestyle.
How Do I Get Started?
There are many ways to get started, so I suggest you read the article on making $10,000 monthly and explore other methods mentioned on this website. You will need to choose what suits you best, and you will likely need to pursue multiple ways to be successful.
How Much Money Can I Make?
There is no limit to how much money you can make. I know that sounds cliche, but it is the truth. Unlike a job, no one is standing in your way and preventing you from earning as much as you want. Does that mean you will become wealthy? As I am sure you are aware, there is no guarantee of that. What all of the methods provide is the opportunity for it to happen. It will require hard work, learning, failure, more learning, and persistence. Just remember, none of this is a get-rich-quick scheme.
I only throw this in here to remind you that with income comes taxes. Be sure to have a good tax advisor to counsel you. Don't get yourself in trouble with the IRS.
How Fast Can I Quit My Regular Job?
When you can quit your job is usually the first thing on anyone's mind when starting a side business. The answer will be different for everyone, but it is safe to say that you can quit when your passive income is equal to your regular income. I know you don't want to hear that because you want so badly to quit. The reality is you have bills to pay.
So many times, people take a leap of faith and quit their jobs without the safety net. It is not intelligent, but I can't judge you for it because it is what I did. Some people will be fortunate, and others won't. The smart play is to keep working until you have the safety net.
Is Failure A Possibility?
Absolutely failure is a possibility, but only if you quit. Think about it, if you never stop, you may not have reached success, but you haven't failed. You have probably read of the successful business people that had failed attempt after failed attempt, but they would not quit and finally had tremendous success. So don't be the person that stopped mining for gold when you are three feet from striking it big.
Is Success Likely?
As mentioned before, if you don't stop pursuing your dream and you learn, practice, get up when knocked down, you will find success. Don't listen to anyone else that tries to deter you, and you will get there.
Choosing My Method Of Passive Income
I personally like affiliate blogging and publishing books on Amazon. You will have to decide what is right for you. YouTube is a tremendous resource for how-to's, and you can see what others are achieving. I caution you not to get caught up in the hype and don't buy expensive courses. There are plenty of free videos and advice on YouTube. My three favorites are Greg Gottfried. Income School, and WholesaleTed.
Treat It Like A Business
It would be best if you treated it as a business because that's what it is. You will have expenses, taxes, gains, or losses. Passive income is merely the result of your business.
You need to pick your method and start today. Don't wait until tomorrow. If you don't have money to start, do print on demand. It doesn't cost anything, and many income-building methods cost less than $100 to start. It will feel good to take control of your future.