See how you can make any source of income into a "Passive Income Stream".
Then, on top of that, you can create multiple other forms of income that will generate more "Passive Income Streams".
It's simple but not easy. Here's how.
The first place to start is your current job. It may be a 9-to-5 job but that shouldn't stop you from making it into a "Passive Income Stream" and then creating other streams on the side.
I will list a whole bunch of potential ideas for passive income below. Obviously, not every idea is everybody's "forte", so you have to pick which one(s) are right for you.
There should be something for everyone, whether you want an online form of passive income or a traditional form of passive income.
Passive Income (Primary) Source - Your 9-to-5 Job
Everybody should be using their main source of income as a primary source to grow passive income. The details of the framework to achieve this (getting out of debt, living within your means and other details to free up cash) are detailed in the book "Barstool Millionaire".
So, after you have freed up 15% of your income, you will use the investment strategies given in the "Barstool Millionaire" book to invest this capital.
This passive income method is slow and long-term, but it works! Also, the beauty of it is, that you can create other forms of passive income while this initial system works in the background.
The forms of investment passive income will come in terms of:
Dividend Income from within mutual funds or ETF's (or single stocks purchased).
Compound Interest from Capital Gains made by your stocks in the market (average 10% per year).
Employer matching if you are investing through a 401k (initial 100% return on amount invested, then that total will start to compound passively)
House appreciation (the only investment that increases in value as you are paying for it over 25 years)
Raises and promotions through your career (passive increase for the same job)
Many people do not realize that their regular 9-to-5 job can be a form of long term passive income.
However, if you spend everything you earn, do not invest, get the employer matches, buy a house, or get any promotions over your entire career, then you have self-eliminated this form of long term passive income.
Some "experts" will not call your 9-to-5 job a form of passive income because you are trading time for money.
They only consider income to be passive if it earns money for you while you sleep (by generating online sales, for example). As well, it will continue to earn passive income in the future, even if you stop working on it (for example, an online course after it's fully developed)
We will examine these other forms of passive income below.
Other sources of "Passive Income"
Now we get to the other sources of passive income, which could start as a side hustle and grow to replace your 9-to-5 job, if that is your goal.
Keep in mind, some people do a job because they love their work. So, even if they generate significant income from additional side hustle passive income streams, they may still want to continue their initial career (I know firefighters and doctors, for example, who would never give up what they do, but are open to side hustles).
"Side Hustles Don't Require You To Give Up Your Initial Career, But May Give You The Option" – Barstool Millionaire
So here it is, a list that I have comprised of many different side hustles that you could try. They will all generate passive income, but keep in mind, they take time to build up, and if you aren't patient and are the type of person to give up early, they won't work.
Note: All of these passive income streams are truly passive, meaning they do not trade time for money (like a 9-to-5 job). That being said, they also do not guarantee a set income.
A stream may earn nothing at the beginning, then $100 the next month, then $2,000 the next month, then back to $300 the month after. The income is unpredictable, but on the bright side, they allow you to earn income without much daily work, once they are set up (if set up properly).
Here's my online passive income (potential) list:
Set up a Blog
Create a YouTube Channel
Write a Newsletter
Set up an Online Store with Dropshipping Products
Write an e-Book
Create an Online Course for your hobby (ex: gardening, woodworking, playing a musical instrument)
Start a Podcast
Start a niche website
Develop a subscription website platform
Develop an App
Write a piece of software to sell (game, plugin, program)
Affiliate Marketing
Publish Low-Content Books
Sell ads on Your Website (Google Ads)
Here's my passive income (potential) list of side hustles that are NOT online:
Start a vending machine business
Write a Physical Book (hardcover and softcover)
Invest in a rental property
Start a company for snow removal and/or landscaping based on a monthly fee
Order physical products and sell on Ebay, Amazon, Walmart (combination online/not online)
Rent out your car on weekends
Buy and rent out an RV
Buy and Rent out a Boat
Rent a room in your house to a tenant
Start a business with employees (so you earn money when they do the work, such as tutoring)
Advice for choosing a side hustle (potential) passive income stream
The following advice will give your side hustle (and potential passive income stream) more chance of success:
Choose something you are passionate and knowledgeable about (or something you can learn about easily, like the vending machine business)
Do a month or more of research before you start
Do not go into debt to start the side hustle
If you can start something online, then choose that over non-online (due to the negligible startup cost)
Give it time, it may take several months without earning any income before it gets traction
If choosing an online method (for example, website, blog, podcast), try to choose a topic that you have been interested in for your entire life (ex: Star Wars collectables, comics, music, a specific sport, gardening, woodworking, bicycles, cars, travel, cooking, or any one of millions of interests)
If online, put out quality CONTENT! There is lots of mediocre content online, so if people are going to pay for something (a subscription, click on an ad, buy a product from you), it has to be surrounded by premium content.
Don't consider leaving your 9-to-5 job until your side hustle is earning as much or more than your full-time job (or keep both if you want to).
If trying an online side hustle, buy quality basic equipment such as a good computer, microphone, headphones and any other equipment required to get you up and running.
At least at the beginning, it will require a commitment of many hours, so don't believe the people online who say they only work 5 hours a week. (This may be possible once your side hustle becomes a huge passive income success in the future, but certainly not in the first year or two!)
Do not worry about the number of followers, customers, or views. Concentrate on producing a good product and the people will grow organically.
Do not spend very much money (if any) on advertising at the beginning. See if your product or service gets traction as you might have to pivot towards something else and you want to spend advertising dollars wisely! (even something like a rental property, you can usually advertise for free online, then give a portion of the rental to the site if rented on Airbnb for example).
Do It Right and You'll Earn Passive Income Forever
This framework for setting up a passive income stream can work great, but it is never easy. Think about how difficult it is for other online or offline businesses to get you to buy their product or service (or even go to their website, store, podcast or click on an ad)?
But in the end, we all buy or rent stuff, read stuff, listen to things, and have interests where we are willing to spend money.
So, provide a great product, and you can watch the money (passively) come in for years to come.
Good luck and remember, you can do it!
Comments