Just do it… now! Seriously, what are you waiting for? Time is money as they say, and the sooner you start investing the better results you are likely to see – passive or otherwise. The sooner you have your income sources working for you the sooner they’re earning you interest and being reinvested, building up steam as they go and getting you closer to your financial goals. So you have a good idea of what passive income is, and now you’re roaring to start making some. But where to start?
You do you.
The first thing you need to do is to ask yourself why you want to earn passive income. What is it that you’re striving for? Are you trying to save for retirement, spend less time at work and more time with your family, go on more frequent vacations, or position yourself to buy a new house? Take it one step further and think outside of the financial box. What about more personal goals that you want to accomplish? You know, bucket list type things. Do you want to drive a coastline in a convertible, go skydiving, or start your own business? Start with identifying your own personal goals and keep them in mind as you go along. After all, money is just a means to an end, so what will that end be for you?
That didn’t really sound like a step, are we going to Step 2 now, or is there a Step 1B?
Ok, enough rhetorical questions already. It’s time to go to school and educate yourself. Figuratively that is, not literally. Research and find out what types of passive income streams are out there and which one (or more) make the most sense for you. There are a lot of options available so you’ll want to consider things like which ones interest you, how much time and energy you have to invest, and which ones play to your strengths. For example, you might be interested in selling your photographs online but if you don’t already have the equipment then this might not be the best option for you as camera equipment can tend to be on the expensive side. On the flip side if you have experience in something, lets say writing for example, then something like blogging might be a natural fit for you. Whatever you choose just make sure you pick something that you are passionate about! Doing so will show in the quality of your work, ensure that you keep putting in the required effort, and ultimately make you successful.
Done, Step 2 … profit?
Well now that you’ve done some research and found a passive income method that you want to try, it’s time to execute! The funny thing is that this is where most people stop. They dream big and do some of the groundwork, but then lose interest or get sidetracked by life until they find themselves in a situation months or years down the road where they want to earn passive income again. The next step is to stop thinking about it and start doing it. Period. Jump in. Go for a relaxing cool swim.
If this step is a blocker for you, ask yourself why. What is it that’s holding you back? Is it money to get started, not enough time, or perhaps a fear of some sort? Take some time out and ask yourself the tough questions, and do that self-reflection. Then make a deal with yourself to help you kick-start the process. Set the bar low, and start small. Get your feet wet and give yourself the opportunity to build a foundation to work off of.
What kind of deal you want to make with yourself is up to you, but here’s some scenarios that you might relate to:
Maybe you’re short on cash but want to start investing for your future but feel like unless you’re investing large amounts of money you’re not going to get anywhere. Make a deal with yourself to start with whatever small amount you have, no matter how small. There are a lot of FinTech investment options out there that let you start with a very small amount. Plus once you start to see some return on investment you’ll be energized to start investing more!
Perhaps you are a very busy person who just doesn’t have a lot of spare time to devote to other things, or maybe you just find personal finance to be so boring you just can’t bring yourself to spending time on it. Make a deal with yourself to spend 30 minutes a week on it, or whatever small amount you feel you can spare. If you’re reading this blog post then it’s likely that you can at least see the value in doing so, so stop reading the rest of this post and spend a little bit of time researching instead!
Are you interested in dipping your toes into the stock market but scared and overwhelmed by the prospect of it all? Make a deal with yourself to invest some small amount of money just to get familiar with how things work with the caveat that you are willing to lose that money. Losing your money is obviously not ideal or the goal for that matter, but what you’re doing is setting acceptable boundaries for yourself to get over the mental hurdle.
Whatever the challenge, make that deal with yourself that allows you to move ahead without any mental baggage. What you’re actually doing is investing in yourself, and giving yourself mental permission to learn and experiment. Of all the investment options out there, investing in yourself has the highest potential return on investment!
Put me in coach, I’m ready!
Congratulations! You’re interested in earning passive income as soon as possible, you’ve picked out a method of doing it, and you’ve made a serious commitment with yourself to follow through with it. You’ve made it past the hard part my friend. You’ve set yourself on a path towards success that will surely be lined with some bumps along the way, but you’ve taken the critical first step towards your own financial freedom and independence!