Making money is the primary thought for the vast majority of people. How to get it faster, easier and with less energy expended by ourselves are daily thoughts for most. The goal is, of course, to live of one’s passion while generating a stable passive income. But how is that possible? In this article, we will dive into this topic. But first, we will quickly outline what passive income actually is – for those of you new to this term.
The term is an oft-heard one, but many do not know what it actually is. Passive income or residual income is actually just one that is received on a regular basis with little to no effort on your part. Passive income can come from a number of sources and include things such as stock investments, affiliate marketing earnings, and even sales from a book. However, it should be noted that this type of income is primarily internet-based.
Difference between active and passive income
Three successful case studies
income choices. These people lead the way for the rest of us to follow. Pat Flynn is possibly the best known of these, and one of the youngest. Facing being laid off, Flynn turned to blogging. This remote working hobby took up his free time but saw him create an online study guide. Within a month, the guide had made thousands. Flynn has gone on to create a successful podcast channel and continues with his blog.
Another blogger, David Ning, also turned from a highly paid, though stressful job as a salesman, turning to residual income as his main source of funds. Similar to Flynn, he started a blog and now runs a successful finance blog alongside writing other small pieces here and there.
Finally, there is Sam Dogen whose main goal was to achieve financial freedom in the fastest way possible. In order to do this, he began buying stocks, rental properties and more. Soon he too began a blog before quitting his high-paid job and committing to the writing full time.
“Good ideas are common, but those who are willing to take action and execute those ideas are far more rare.”
― Pat Flynn
5 tips to increase your passive incomes
As evidenced by the gurus listed above, picking the right form of passive income is the key to success. Here are just a few ideas to get you started:
- Earn money writing – a great book or blog will set you up for a long time to come
- Getting out of debt – the less you are paying out to someone, the more you’re getting in
- Investing and saving wisely – high yield accounts will give you great interest rates
- Renting a room in your house – Airbnb is a great way to get started in this
- Cashback – often overlooked, cashback on shopping can gain you some extra pennies
Main passive incomes gurus
As you get your feet under you in this strange new and unexplored world, there are a few blogs and people you might want to check out. Joe Udo started his Retire by 40 campaign at 38 years old. Now he lives off an income made entirely from rentals, stocks and other online activities.
Elle Martinez offers a great insight for couples in this passive income world. She helps to solve the problems that arise in these environments and shows you how to live comfortably off a single income.
Joshua Dorkin is another great role model for those who are struggling. His blog Bigger Pockets shows you exactly what can be reached when you persevere and is one of the main options in showing you how to attain financial independence through real estate.
There are many more blogs out there for you to peruse offering various different topics and advice. However, the main takeaways here are to keep working towards your goal, find ways to make money online and to be creative. Niche markets are a must and finding an innovative way to showcase what you can offer will help you to get noticed.