Why you need a passive income stream today
Here are three different ideas to get you started.
Passive income is one of the best financial moves anyone can make to create a better future. It allows for additional income in your day-to-day expenses and it can eventually lead to early retirement. Passive income is not difficult to create. A lot of the work is done in the beginning but there will be the maintenance of it along the way.
At the end of the day, money is just the exchange of providing value to someone else.
Think of your job, for example. You might work in an office as a marketing manager and your main responsibility is to market a new product to customers. You are getting paid to do that task but you are also providing value to your employer because you’re the expert on marketing a product to a customer base. Your employer had a need of finding someone to take their product to the market and you fulfilled that need. In exchange for providing your experience and skillsets in marketing, they are paying you a salary for your efforts.
Now, if you can figure out how to provide value to other people then you are well on your well to potentially creating a new income source. Passive income can look very different for you than it does for me. It has different shapes and forms. For example, passive income can be made through dividend stocks. It can also be made through e-commerce. It can be generated through a new app as well as mining cryptocurrency. You can also create a small business and eventually have it run on its own while you check in on it from time to time.
All these ideas are not created equal. Some are harder and some require a lot of money to get started. But the most important thing is that they all take you to the same destination. How you get there will depend on your risk tolerance, your starting capital, and your willingness to learn a new skillset.
Why should anyone even create a passive income stream in the first place? It’s important to note that even in your career, a sudden downturn in the market can leave you out of a job. Having multiple sources of income can protect you during those hard times. Losing your job would not be a nightmare anymore if you were making let’s say $1,500 a month in dividends. Yes, your financial situation would be very uncomfortable but you would still have enough for food and a room to stay in.
Here are a few ideas that can get you started on a passive income stream today.
Dividends
This one is my personal favorite. Investing in dividends can essentially buy your way into freedom. It is a slow road to get to the point of living off your income but it is very doable for anyone to take part of this strategy. It’s as easy as finding a reputable dividend ETF like SCHD and buying shares of it every month. Every quarter your dividend will arrive and you can either choose to re-invest it or you can spend it on anything you’d like.
Digital Products
Digital products are extremely popular today. Whether you’re downloading a new e-book online or you're buying a template for photoshop, digital products are everywhere. For this to work, you’ll have to find something that you can craft or build on your own and then sell it online.
Let’s say, for example, you decide to create an e-book showing people how to work out and lose weight. You sell it for $10 and 1ooo people purchase it within one month. You just made $10,000 in that month from selling your e-book.
YouTube
Starting a Youtube channel to create a passive income is a smart idea but also one that is going to take some time to build. Starting the channel itself is the easy part, creating the content every week as well as doing it consistently for a couple of years is the difficult part. But if you’re up for the challenge and enjoy making videos, then this can be a really great path for you.
The most straightforward way people on YouTube get paid is through ad revenue. For every 1,000 views, you get paid a certain amount depending on the content you deliver. For example, if you create 10 videos and one year later they collectively brought in over 1 million views, you would have earned a good amount of ad revenue from those videos.
I hope these ideas help out or got you thinking about different ways you can start today. No matter which route you take, as long as you’re consistent with what you do, you will be successful. I wouldn’t overthink which idea is the best, I would choose the one you’re most comfortable with and the one that will not make you lose all your savings if things don’t go the way you planned. Remember that building this passive income stream will take time and it’s part of the process.
