WHAT IS PASSIVE INCOME & IS IT REALLY THAT PASSIVE

This post is about what is passive income and does it really exist.

What is Passive Income?

Passive income is income you make by not having to trade time for money. In plain terms, it is essentially money that you make while you sleep. There are many forms of passive income and individuals, who have increased their wealth exponentially over time, advocate that the goal should be to build at least 7 income streams in your life. Grant Cordone is one of these individuals.

The reason why I gave this post the title of 7 “not so” passive income streams is, because, generating passive income doesn’t just passively happen. At least in the beginning. It isn’t something that happens over night. In fact, you must set up the stream first, in order to, generate passive income in the future.

Some passive income streams can be set up much quicker than others.

Here are the 7 “not so” passive income streams anyone can start today.

7 “Not So” Passive Income Streams to Start Today

1. High-Interest Savings Account

One form of passive income is to open a high-interest savings account. A high-interest savings account can have interest ranging anywhere from 1.05% to 3.25% if you do your research. Many banks offer attractive promotions during the year, and if you decide to open a high-interest savings account and deposit your savings, for example $10,000 dollars, then you could be making anywhere between $105 and $325 dollars per year by simply making passive income on interest and your money working for you.

2. Blog Affiliate Networks

Another form of passive income is to start a blog and join affiliate networks to promote products, goods and services. By doing this on your blog for example, you can generate commissions from purchases. The great thing is that you have to create amazing content and use affiliate links within your blog post which work on their own once set up. However, you also have to continuously produce great content so that your blog will rank high on Google and will generate traffic to your website. Because without traffic, you won’t have any sales and won’t generate commissions.

3. Start a YT Channel

Just like in the case of starting a blog and creating amazing content, the same goes for Youtube. The views of ads will generate income and that works all automatically. There are many Youtube creators who have been able to completely rely on Youtube’s passive income from ads to sustain their livelihood. Yes, you will have to continue to create content but that content will live on and even years down the road, could generate you a decent amount of passive income.

4. Sell Downloadable Printable on Etsy or e-Bay

Another passive income stream is to sell printable downloads on Etsy or e-Bay. You will have to create the content once and list it on the particular platform. The great thing is that it will be there for infinity, and can be downloaded endlessly and you never have to monitor inventory or worry about shipping. Again, you might need to market your Etsy store or
e-Bay account in order to get traffic and sales.

5. Create and Sell an E-book or Workbook

If you want to make passive income, then another idea is to write an e-book or create a work book on the knowledge and expertise that you have on a certain topic. Again, these types of products have to be created once and would be available for download endlessly without having to monitor inventory or deal with shipping. These types of goods can be sold on your personal website or Amazon. Furthermore, you could offer people who have bought and read your e-book/workbook to generate even more passive income by having your products be part of an affiliate program. You would again have to market your e-book/workbook in order to get sales.

6. Invest

This is without a doubt a no-brainer but I thought I’d mention it. Of course, you can generate passive income in form of dividends from investments. The strategy with the least effort is probably done by buying ETF’s (Set and Forget Strategy) as you must not actively manage your portfolio. In order for your portfolio to grown and to generate more dividends, you will have to consistently reinvest (compound interest!). Beware that you also face the risk of losing money. You should educate yourself on this topic and speak to a financial adviser.

7. Create a Membership Site

Finally, you could create your own membership site and offer services such as coaching and mastermind groups. This is a great way because although the initial set up might entail some time and hard work, once set up, a membership site provides you one great way to generate passive income. You will still have to maintain your website, collaborate, innovate, hire virtual assistants and do some type of online marketing in order for customers to keep joining your site.

Many Other Forms of Passive Income

Of course, these are just a few ideas on how to establish passive income streams. These are especially good if you are a beginner in creating passive income streams as they do not entail much start-up costs. So even if you do not have a lot of money at your disposal, you can begin with these ideas and develop from there.

Myths about Passive Income Streams

There is a lot of content with regard to passive income streams out on the Internet. It sounds almost too good to be true in most cases. Fact is, creating passive income streams is not an easy task and it also is not entirely passive. It’s not like it just happens on its own. Some of the ideas mentioned above are easier to execute than others, such as starting to invest (do your due diligence!) versus creating an e-book. You will still have to work hard in order to really create good passive income.

In order for passive income to happen, you must set the systems up which will generate passive income down the road.

Final Note

The important thing to take away from this post is though that you can build other income streams which in future, could, potentially, generate income that is passive.

However, in order for this to happen, the income stream needs to be created  first and this requires active undertaking.

Some passive income streams can be set up quicker than others, such as a high-interest savings account with your bank. Others, such as creating a Youtube Channel and content for that channel takes a lot more effort and time.

Creating passive income streams won’t be something that pours out money the moment you create them (they could – but I personally haven’t yet seen it), thus it sure will take some time before you see passive income come in.

This post is about what is passive income and does it really exist.

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