Passive Income

 How I Started My First Passive Income Stream

I’ve been on an entrepreneurship journey since I was 17 years old, starting with nothing and building businesses from scratch with nothing but my laptop, the power of the internet, and my brain. I’ve started 2 successful businesses so far, selling one and keeping the other, which still makes passive income to this day! Here’s how I did it! (And how you can do it too!)

What exactly is passive income?

Sometimes called residual income, passive income is income that you earn on a recurring basis, with little effort required to maintain it. As long as you are putting in enough effort to earn money during your initial active hours each day (or week), you will continue to earn that money. It doesn't require much upkeep, once it's set up. A good analogy is a vending machine -- after you put in a lot of time and effort to fill it with snacks when it was empty, once filled, it will keep dispensing snacks for as long as it’s fed coins. You are also able to receive passive income through interest payments made on loans, ownership stakes or dividends paid by companies/corporations that have been paid back.

What skills do you need to build passive income streams?

If you want to start a passive income stream, you need to take a look at what you have and what skills you can sell. A good passive income stream starts with your niche. Find something that is underserved in your specific niche. In order to do that, you have to understand what people like about their existing products or services and how they feel about them before venturing out on your own. The best way to do that is by reading reviews of other people’s work and then seeing if there are any holes in those offerings. If there are, then it’s time for you to step up and fill those holes with your own product or service. Remember, when it comes to creating passive income streams online, filling holes is where it’s at!

How much time will this take?

The time it takes to make money can be drastically different depending on a number of factors. It is always suggested that you start making passive income today so that you have an idea of what to expect in your journey. You’ll also begin to see how real life application will factor into your equation. Any additional time required beyond that is just planning and preparation work, so don’t worry if it seems like it will take forever.

Are there any problems with passive income?

Even though passive income is often a good idea and can be a lot of fun, you shouldn’t expect to get rich quick. There are people who make thousands or even millions of dollars each month with passive income, but there are also plenty of folks who barely earn enough to pay for their necessities. Before you quit your day job in pursuit of passive income, make sure that you have realistic expectations about how much money you can actually make. Know what kind of effort is involved before you dive in headfirst!

What are my options in terms of passive income sources?

If you’re looking to generate passive income, there are four main ways you can earn money without relying on your own physical effort: interest, dividends, rent and royalties. A good way to generate a passive income is to work part-time in a traditional job (for those of us who have that option) while engaging in passive activities such as investing and real estate management.

The easiest way to start your first stream of passive income today.

If you're looking to start a passive income stream but feel overwhelmed or unsure of where to begin, take a step back and look at your personal finances. What are some things you spend money on every month? An easy first step is to ask yourself what monthly expenses you have that you could trim or eliminate. For example, are there any subscriptions or memberships you can cancel? Perhaps there's a service you can do without for awhile? Cutting these expenses out will free up some extra cash each month which, in turn, could help kickstart your first passive income stream.