Im sure most of you are all aware of passive income, however ill start this of by stating what is income you get form work long after its done, this might be from investing unsticks or real estate or from a YouTube video that monetised there’s an endless list of possibilities when it comes to passive income.
Why passive income over active income
Active income such as a job only gets you money for the hours you put it, passive income can be making you money 24/7. There are downsides to passive income however as they can take time to build up it may take years to get any substantial income from passive sources so whilst they should be a long term goal it will take time to build hence active income will be needed.
Realistic ways to achieve passive income
investing in stocks and real estate- This is something everyone can do they will take time to build up however they are the most passive type of income in my opinion (real estate will take more work than long term stock investing however) the key to making real estate passive is by using a property manager they will charge a fee however they will reduce the Time needed to manage properties.
The pros of investing
Investing is something everyone can do with the right knowledge or understanding of one particular asset
some forms of investments require very little maintenance work for example index funds you don’t need to be constantly managing them to ensure they are working.
The cons of investing
it can be costly to get sufficient enough passive income that you can consider retiring (this is why its important to look at this as a long term approach.
it takes multiple decades on just an everyday salary to reach many peoples goals using this.
setting up systems in a business so you’re input isn’t needed- you can do this a number of ways by leveraging different parts of the business. You will need to set up systems for your business to make them as efficient as possible this would be a set way to do a set task meaning everyone that’s involve knows what to do minimising your input. I would like to say with this you need to make sure not to do this two soon you can seriously damage the growth of a business by doing this too soon, make sure your happy with where you’re business is before even attempting this.
The pros of setting up systems in a business
you can often reach your goals faster than with investing in stocks or real estate.
you can have a bit more control using business than with some forms of investing.
The cons of setting up systems in a business
if you set up systems too soon it can damage your business
its often not as passive as investing you will likely need to have an input of a few things to keep things running.
starting a YouTube channel or blog- this is passive in the sense that your old work should continue to get traffic and you should therefore be making money from older content ,but you need to be uploading content consistently to make sure your maintaining your online presence this type of income in likely to take a very long time to gain any traction however if your site or videos take of the return you’ll likely receive if much better than most standard businesses.
The pros of becoming a content creator
you should be working with something you enjoy doing
content will continue to make you money after you made it
its easy to scale once you’ve gained an audience
The cons of becoming a content creator
it can be hard to get noticed as its competitive
it can be very time consuming to get the initial content created.
I believe the answer to the title of this blog post is very simple once passive income is understood as your content, systems and investments work even when you aren’t its a very time efficient way to make money freeing you up to start more projects or do more research into your next big investment, or even just give you the freedom you want in life to make the choices you want when you want and where you want.
my advice with this is to set up an active sources of income this could be a job a business’s or both and once you’ve gotten used to these work towards multiple streams of passive income one at a time.