Let me first start out saying this is not an affiliate link bank; I am not going to tell you that doing all your searches through Bing or Swagbucks, or all your shopping through iBotta is passive income. Because it is not! Those are just incentive programs, to do your shopping through them, or to actually do work for them by building their businesses. Passive Income is income that does not come from trading your time for money; it is something that is sustained even when you are taking no actions. However, that does not mean there is no work involved!!!! Let’s get this straight; there is no such thing as money without effort. The closest thing is government cheese, but you still have to jump through a ton of hoops, live a very modest life, and be reliant on someone else. Passive Income streams tend to have a lot of work up front that yield a slow stream that takes only a negligible amount of time and maintenance later.
Stock Market: Dividend Stocks, Index Funds. The key for passive income in the stock market is only to take the interest accrued out or dividends. Dividends Stocks are single company stocks that have a good track record of growth in the value of the stock as well as give little kickbacks called dividends. The key with the stock market as a passive income is that you do not remove the money that is generating the interest or dividends. The catch for this is that it takes a significant amount of cash (Work) to make any real life changing amounts here.
Real Estate: Rentals, Owner Financing, Lending. The best thing about this category is that it all works together to allow for a lower point of entry. The bad part is it takes a long time or a lot working with many balls in the air to switch over from the person paying mortgages payments to the person receiving the mortgage payments. There are also so many different options for investing within the Real Estate industry. The baseline rule is getting someone downstream of you in the world to pay you a consistent cash flow.
Businesses: Franchises, Self Startups. These take a lot of upfront work and time; businesses vary widely from restaurants to vending machines to small-scale blogs. Your imagination and motivation is the only limitation. Entry point can be very low like a blog or require significant capital such as a franchise. For passive income, the goal has to be generating enough income that you can hire people to do all the work and still yield an income.
Creative Royalties: Inventors, Authors, Musicians. Usually taking a great deal of upfront work and marketing before any returns are seen. These once they are created passively create income. How much income mostly varies on quality, quantity, and marketing. For this not to be a business you have to hand this off to someone else such as a record company or a publishing house.
Do you like your life or are you just passing the time? Are you doing what you want to be doing right now or do you find yourself jealous at other people’s highlight reels on Facebook? Are you working towards doing what you want or are you waiting for life to happen to you?
Many people feel like their life has gotten off track, or maybe that they have been going the wrong place the entire time. If this strikes a chord, it might be time to suss out why you are living the life you currently are if it is not what you want.
What is a priority? Priorities are the most important things in your life, what you deem most important to yourself. Whatever you make a priority in your life has a higher chance of flourishing as it is getting more attention. Priorities show themselves in the amount of time you dedicate to something and the amount of money(which is ultimately the value placed on your time) you spend on the things important to you.
I will use traveling as an example of goal achievement and priorities because I know many people claim travel as one of the things they would like to do more of and are not doing anything to fulfill that goal. Many people who claim to want to travel, never actually do, they like travel pages on Facebook, they have dreams of lounging on the beach or partying away in a foreign country. They do not work towards it; they do no research to find out how they could do it now, and when they do get a chance to take a vacation they visit relatives. Clearly, travel is not at the top of their priorities. People give excuses well I if I just had more money. False, you could travel now you just have to adjust your expectations and make it happen. Or maybe you should just own it, and know that traveling really isn’t that important to you and stop being wistful about it because truly you would rather see your family or play basketball with your friends.
1. Write a list of your top 5 priorities. Examples: Friendships, Spouse, Children, Security, Health, Success, Pleasure, Nature, Status, and Adventure. 2. Write a list of 5 goals you are working on. 3. Take your average week and tally up the hours you spend doing things. You will quickly see where your current priorities are. If you dislike your job and you are spending the majority of your week doing it and no time applying for different jobs or doing research or education on what you would rather be doing it might be time to reevaluate that. 4. Evaluate your monthly statements, where is your money going? Whatever you are spending it on is where you are placing your priorities.Do you have a new car payment, saying appearances is important to you? Do you have money going into savings every paycheck, showing security is a value you place importance on? 5. Compare and Contrast 1&2 with 3&4. Are you working towards your goals? Are you putting your energies into where you want them? Try to figure out why things might not line up, and adjust your life accordingly.