The Truth About Passive Income
0
0
When you hear people talking about having multiple income streams, are you thinking that sounds great, but how would you manage it? After all, you can only just about find the time to do the work that brings in your one income! Are these people doing working different jobs and only sleeping for 2 hours a night?
No probably not. Multiple income streams could include a person’s main job, a part time business, or side hustle, a passive income stream and perhaps earning a commission on something they have set up.
I’m going to look closer at passive incomes, that’s a great way to create an additional revenue stream when you are already running out of hours in the day. It allows you to create an income without having to constantly trade your time for money.
Not sure what we mean by passive income? Passive income is a type of income that does not require active involvement to generate and maintain. This is an alternative to the more traditional active income streams, as that’s something that requires regular work and effort, in order to be sustained.
In simpler terms then, a passive income is something that makes money without any active involvement or effort. Something that will earn money without having to actually do anything. Which is amazing and might sound simple enough, but in reality, it’s a little bit more complicated than that. I’ll show you a few examples of what would be considered as passive income streams to help explain:-
- Investing money in stocks and shares
- Renting out a property or AirBnB
- Investing in a business as a silent partner
- Selling a product that you have created, here are just a few examples
- Photography
- Digital planners, diaries, and journals
- Mock ups
- Canva templates
- E books
- Creating an online course
- Publish a book
- Create and monetizing a blog
- Set up a YouTube channel
- Affiliate Marketing
- Drop shipping
- Selling products using the Print On Demand method
These are a very small example of passive income opportunities and there are dozens more once you start looking, I made a list of 50 ideas. and when I starting looking a little more closely, it quickly became clear, that to create a passive income stream, you either need to invest money or invest your time. You must do some work upfront to create the thing that will bring you the income or you need upfront money to invest. With the risks involved when it comes to investing, I would recommend getting expert advice too.
If you’d like my list of 50 Passive Income Ideas, you can download it here
So, a passive income doesn’t really seem to be completely passive at all. It takes time, effort, and energy to create the product, the course, the photos, the e book etc. But once it’s been created, then you can offer it for sale repeatedly. It may not happen overnight, but the rewards can be significant , and without having to do the same work again, to create the product.
The idea behind the passive income is that once the initial set up work is done, the income will continue to flow into you. That is your passive income. Creating a truly passive income can take a significant amount of work up front, and can take time to become established, but can also generate some meaningful revenue and a consistent income.
Even with the Drop shipping and Print On Demand ideas that do not require anything to be created up front, you still need to spend your time in marketing and promoting the products that you are selling. If you aren’t too sure what Print On Demand is, I go into that in a bit more detail here in this blog. Click Here To Read
With all that effort required, are you asking yourself whether it is worth it? There are a number of factors that can create an obstacle to creating an extra income stream, a person may not be able for a number of reasons:-
Lack of knowledge and skills: a person may not know how to invest in stocks or bonds, or may not have the technical skills to create an online course or digital product.
Lack of time: it takes time and effort to set up, and many people may not have the time or energy to put into it.
Lack of resources: some ideas require a significant amount of money to get started. For example, investing in rental properties or stocks and bonds may require a large amount of capital, which some people may not have or be willing to risk.
Fear of failure: People can be hesitant because they fear that they will fail or lose money. This fear can be a barrier to taking action.
Underestimating the effort required: Some people think that creating a passive income is easy, but it requires a significant amount of work to set up, market and manage it, which can discourage them.
But done well and consistently, your passive income idea can really help to create financial security and independence, so it’s really worth considering for a variety of reasons:
- Provides you with a safety net if you experience any unexpected financial difficulties
- Allows you to save money or create your investments
- Gives you the financial freedom to pursue your hobby, travel or spend more time with the family
- Helping you achieve your big financial goals like buying a home, paying for a wedding, leaving a job you don’t enjoy!
There are many different ways to generate a passive income and if you think it’s for, do some research and find the best option. Something that will suit your goals, your skills and your financial resources.
Some tips for creating a passive income
If you are investing in assets, invest in something that will create a cashflow. Investing in property is great, but creating a rental income from it, is what will give you the income.
Consider different types of income streams and diversify if you can. Then if something untoward does happen, your other income streams are less likely to be impacted in the same way.
Automate your revenue streams as much as possible. Print On Demand is a great example of this, as the actual printing of the product and delivery to the customer is all done for you. The added bonus of the Print On Demand method is that it is also risk free, no/low costs and easy to get started.
Make sure that you keep looking for ways that you can improve and scale your various income streams
Have patience in the process and be consistent
Don’t be discouraged by the fact that passive doesn’t really mean completely passive. You can’t sit back do nothing and expect the money to keep rolling in. I’m not really sure that there is any such thing as an income with absolutely no effort if that is what you are looking for. We’ve all seen that the internet is full of experts telling you that you can create a six figure income from your laptop, in just an hour a day, sipping cocktails on a beach, if you buy their product/course/membership. But that just isn’t true. It’s either a straight out scam or once you’ve bought into their scheme, you’ll be sadly disappointed with the results.
The realisation that there is still some effort required in creating your income stream, can sometimes put people off, they don’t take the action. Putting in the work up front or taking on that initial risk may not be for everybody. It’s important to do your research and get good financial advice. But don’t get stuck in that cycle of ‘analysis paralysis’. You spend so much time looking into the detail of something that you never take the action to get started.
My advice would be to pick an idea that is suited to your lifestyle, something that you can see yourself enjoying too, so hopefully it won’t even seem like work. If you are already running your own business, and I know that already takes up a lot of your time, so look into something that expands on what your business already provides. The perfect passive income could be something you run alongside your existing business. It can then be included in the marketing and promotion of your business too, something that you are probably already doing
So now that you know what a passive income is, are you already having some ideas about what you could do? Don’t just think about it though, do it, get started. If you don’t try, you’ll never know if it is something that could work for you. Then once you have succeeded with adding one income stream, create another one. You never know, that passive income could be just the thing that you need to change your life
It’s important to remember that creating a passive income stream takes time, effort, and dedication, and it’s not a get-rich-quick scheme. However, with the right knowledge, skills, resources, and mindset, anyone can create a passive income for themselves.
If you have any questions about Print On Demand and how to use that for your passive income, just drop a comment or get in touch and we’ll be happy to help. You can also click the button below for information on how to set up your own Print On Demand online store,
If you have any questions or would like more information on anything mentioned in our article – Contact Us Here If you’d like to check out the website for some inspiration on merch you can do that here too :-
Click here to join our email list for The Merch Memo and we’ll keep you up to date with new articles, special offers and new product information.
Average Rating