Being successful with Passive Income (or life)…

Wooden board game letter tiles Y, E, S sit on top of cardboard and an envelope that has newspaper print on it

So you’ve decided to get started earning passive income and now you want to take it to the next level.  What kinds of things can you do to ensure success, mitigate risk, and protect yourself and your investment?  While this blog is focused on passive income the items below apply just as much to anything else in life that you’re striving to achieve.

 

Set Goals

Getting started and just doing it is a great start.  But it’s only that, a start.  Your need to know your destination in order to figure out what roads you need to take to get there.  This is no different.  Figure out what it is that you’re trying to achieve, whether that’s financial freedom, experiencing something new, or trying to improve yourself.  Keeping a clear goal in mind will help you keep you focused and motivated along your journey.

Now once you know what that end goal is for you, it’s important to set intermediate goals along the way.  Think of them as waypoints to your destination, or stepping stones that will take you from point A to point Z.  Just like that cross-country trip where you want to jump off the interstate to go see the worlds largest doughnut in some small town.  Why?  Well the end goal can seem pretty daunting when you’re just getting started, so breaking it down into a series of smaller steps along the way will be a lot more manageable.  Hitting smaller goals also reinforces that you’re making progress toward your end goal and builds confidence, breeding further success.

 

Measure and Adjust

As you move along between goals on your journey it’s important to stop and take stock of where you’re at and where you expect to be at that point in time.  When you set your goals make sure to attach a measurable to them.  That could be a date that you want to complete the goal by, a number to measure success by, or both.  Aim high, but don’t feel like you’ve failed if you don’t hit them.  They’re more of a guide for you to shoot for.  Sometimes life happens and things don’t always go according to plan, and that’s OK.  If you hit a goal ahead or time, great!  But if you don’t, use this as an opportunity to make the necessary changes to get you back on track.  If something isn’t working, be honest with yourself and know when to cut your losses and move on.

 

Experiment and Try Things Out

No matter how good or bad you perceive things are going you will never know if there is room for improvement unless you try new things out.  If you know how things are performing over time then you have the ability to try something new out and see if it does better or worse than your baseline.  So first thing is to get that baseline over a period of time that will be significant enough for you to compare against.  Once you have that, try making small incremental improvements, one at a time.  Doing them one at a time means that you know exactly what impact was seen, allowing you to get the best result possible.  It’s probably best to give each of your changes the same amount of time to compare against your baseline before moving on to the next one.  This iterative process can be slow but these small changes will add up into big improvements over time.  Remember, Rome wasn’t built in a day.

 

Keep learning

It’s easy to become complacent and rest on your laurels, but remember that times are always changing.  Continue to read, research, and learn about your passive income source, industry, or what have you.  Knowing what’s coming down the road can help you forecast and mitigate risk or jump on the next big thing before everyone else.

 

Protect Yourself

This is a broad topic, but largely comes down to common sense.  If something seems too good to be true, it probably is.  Nothing in life is free.  Don’t put all of your eggs in one basket.  You know… that kind of thing.  If you’re investing don’t put your life savings into a single stock because it has the word blockchain in it (and you know nothing about that company or blockchain).  Use a financial advisor, if for nothing else than to give you a second opinion.  In a nutshell make smart, informed decisions and seek the help and advice of professionals when appropriate.

 

Tips for Success

Do’s:

  • Get started, now!
  • Try things out and don’t be afraid to experiment
  • Be positive and be inspired
  • Think about what you want to achieve
  • Visualize success
  • Set goals – they give you something to aim for
  • Measure results
  • Invest in yourself
  • Be smart, use good common sense
  • Protect yourself

Dont’s:

  • Be afraid to try
  • Get stuck with ‘analysis paralysis’
  • Tell yourself you’ll do it later
  • Fixate on getting things perfect, work in smaller parts and iterate and improve over time

 

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About the Author: passivedub

Hey, I'm a regular joe trying to find a better way to earn money and live a better work life balance. I'm not a financial advisor, I'm just sharing my thoughts and experiences on different ways to make passive income.

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