The What and Why of Passive Income
[vc_row row_background_lines=”no”][vc_column][vc_column_text]We all need to make money right?
We need some way to obtain and maintain a certain standard of living. We’ve got to eat, put a roof over our heads, clothes on our backs and at the end of the day… we’ve got to ‘pay the bills.’
So, how do most people accomplish this?
Well, most people go get a job. We are all used to the usual ‘9 to 5’ job.
And, let’s face it… at the end of the day or month as it were… we get paid for the work we did during the course of that whole month and we use the money we’ve earned to buy and pay for our needs.
And… if there’s anything left after that, maybe we can splurge and have a little ‘fun’ on something we want.
That sounds normal… right?
Well, it may not be ‘normal’ but it is the way most people live.
So, if people are able to live this way, why do people strive for more?
Honestly, that’s a topic that can encompass many, many more articles… but, let’s be honest, if you are like most people, you want more. More money, more things, more time with family and friends… the list can go on and on.
So, in order to get the ‘more’ that you seek, you likely need to earn more money.
Let’s face it, money is the tool in our society by which we can obtain things.
In order to do so in the current model of a job, you would either need to spend more of you hours working, probably by getting a second or third job… or get a job which pays you more money.
Now, while that sounds great… and quite frankly, perfectly attainable… it’s likely not any ‘fun’ and at some point you will probably be right back in the same position of wanting more.
So, what can you do?
Well, the richest people in the world will tell you that you need to better leverage your time and existing capital to provide an increased or compounded return.
Welcome to the idea of passive income.
What is Passive Income?
Passive income is earnings derived from a rental property, limited partnership or other enterprise in which a person is not actively involved. As with active income, passive income is usually taxable. However, it is often treated differently by the Internal Revenue Service (IRS). Portfolio income is considered passive income by some analysts, so dividends and interest would therefore be considered passive.
So what exactly does that mean?
The bottom line is, passive income is an alternative source of income you receive for work you have done or investments you have previously made. It is income that you receive when you are not actually actively working on it.
To quote Warren Buffet :
All people who have obtained financial independence will agree that having multiple streams of passive income was the key to obtaining their financial independence and is the key to keeping it.
Earning Passive Income
So, the question becomes… is earning passive income something that anyone can do?
The short answer is… YES!
The thing with passive income… the ‘catch’ if you will… is that in just about all forms that passive income takes, it requires some initial time and effort.
This is where most people stumble before they even begin.
Well, sorry for the brutal honesty, but frankly, most people are lazy.
They simply don’t want to do the work necessary to reap the rewards.
They live incorrectly expecting that if ‘I set this up or invest this money today, I will be cashing enormous checks tomorrow’… ‘because everyone just wants to give me their money’…
Delayed Gratification vs. Instant Gratification
You probably read that and think, that’s sounds crazy… and you would be right, it is crazy… but sadly it’s the truth.
If you truly want to set yourself up with multiple streams of passive income, then you must understand delayed gratification. If you can understand that developing these income streams is a ‘long term’ game… then you can have the level of income you desire.
Now, even though this blog is primarily for cryptocurrency information… we felt it was necessary… in the vein of providing great value to our readers… to highlight various passive income methods, that don’t necessarily relate to the crypto space.
We believe that if we over deliver, and give you a variety of options, hopefully at least one… hopefully many… will resonate with you and help you on your way to getting the level of income you deserve.
We will be providing you with passive income options in the crypto space soon, but for now, let’s look at some more traditional options.
Now, though we may utilize some of the methods we have listed In the upcoming section, we will defer to others in each specific space who have a specific expertise.
We will provide you links to website and videos to those we believe, through our own usage, can help you in specific sections below.
Let’s get this party started…
Passive Income Methods
This is by no means an exhaustive list of ways you can create a passive income.
However, these will be some of the easiest to start out and with and with most of these, they require minimal amounts of capital to start.
Create A Blog
Do you enjoy writing?
Are you passionate about something and you enjoy telling people about it?
If so, this may be the thing for you.
Now, as we mentioned earlier, writing a blog is not completely passive, especially initially. You will need to set up your blog, write the material and get people interested in reading your content.
That process is a course unto itself… and beyond the scope of this article…
But as promised here are some resources to start you out in the right direction:
So, why a blog?
There are currently over 414 Million blogs on the internet. We reach out to these types of resources everyday for information on various topics.
You might be wondering how blogs can generate money.
If you start out with a blog that is about a topic you know or are passionate about… you have a greater chance of success and follow through.
Highly active blogs can attract millions of visitors over the course of time. This is especially true when your posts are evergreen.
Invest your time and energy today and eventually, when you are earning enough money from your blog, you can leverage those earning to pay someone to write your blog, post to your blog, market your blog and maintain your blog.
When you make an investment, you are trying to make your money work for you. In other words, instead of having your hard earned money just sitting in your bank account… quite frankly, losing value… you have it trying to multiply and thus earn you more.
Now again, this website is primarily about cryptocurrency, including cryptocurrency investments. But for the purposes of this article, we will not be speaking about that.
Why you ask?
Because, we believe that cryptocurrency is revolutionary and quite frankly going to change the face of the way we transact business… but for this very reason, we want to provide you great amounts of value, so we will be discussing cryptocurrency investing in greater detail in later posts.
So what are the more traditional things that people invest in?
Traditional investing assets include such things as real estate, stocks and gold. Each of these can be provide great levels of passive income.
Now, each of those items we just spoke about is very different from the other. Each provides a different potential income and an obvious differing level of risk.
Because if you don’t match your investments to the level of risk you’re willing to tolerate, then if there is any adversity with your investment, it will cause you great angst at least and will likely cause you to insert too much emotion into the equation, which will eventually cause you to lose money.
The amount of initial funds you’ll need will depend on the investment vehicle you’ve chosen, your long term goals and the amount of time you plan to remain in the investment.
If you are starting your investments with a smaller budget, click here for some investment options.
If you’re like us, we didn’t even realize that this type of platform even existed outside of the cryptocurrency space until recently.
OK… maybe we’ve been living under a rock…
But, Peer-to-Peer Lending can be another great source of passive income.
This option has the potential to return you 4% plus per year. This is incredible when you consider your average savings account with a bank is lucky to earn 0.5%.
Create YouTube Videos
Now, much like blogging we mentioned earlier… VLOGing requires a little work up front and generally continued content in order to remain profitable.
This technique is for all the video freaks out there. YouTube offers a great platform and is currently the most popular platform where you can publish videos and actually get paid for it.
YouTubers can get paid in multiple was, just like with a blog. These include Google Adsense by displaying ads on their videos, affiliate marketing and company sponsorships to name but a few.
Is there another bonus about using videos… perhaps it personifies passive income given that you can get paid even if your videos are being viewed by people several years after it was published.
Advantages of Creating Passive Income
Financial Freedom: Financial freedom is something all of us long for. We’ve mentioned it earlier, financial independence is what allows people to do what they want to do, when they want to do it. Not to mention the stability that comes from these additional sources of income, provides peace of mind should one source fail.
Earn Money While Your Sleeping: Passive income methods not only provide you revenue that is generated while you are sleeping, but spending time with family, friends or frankly, doing whatever you want to do.
Ability to Work From Anywhere: Now, you’re probably reading this saying to yourself, ‘if I have to work from anywhere, that’s not passive income’ and in the strictest sense of the definition that may well be true. But consider, even for these techniques we’ve listed above that require initial effort and investment, the fact that you can do it from anywhere there’s an internet connection provides you with amazing opportunities and flexibility.
Bringing It All Together
If you’re reading this post, you probably want more. More time, more money… more of something that having additional income is the tool will help to provide it.
So whether you decide to be a blogger, investing in real estate or create videos… making the initial investment now can help to start you on your journey to having many passive income sources.
Stay tuned for more cryptocurrency related passive income options coming soon.[/vc_column_text][/vc_column][/vc_row]