Step One: Why Do You Want Passive Income?
Before you create passive income, you need to ask yourself why you want passive income in the first place. Youâll need to figure out how much money you want to obtain passively. Do you want to make enough passive income to pay for all of your living expenses or are you looking to simply save extra money each month with this income? Before you begin to create your passive income portfolio, you need to first understand your end financial objective.
Step Two: How Much Time and Money Will You Invest?
Passive income does require an initial investment of time. Some passive income endeavors will require you to invest your money as well. How much time and money can you dedicate towards creating your passive income portfolio? In general, the more time and resources you put into your passive income projects, the more return youâll obtain from them.
Step Three: Research Passive Income Options!
Once you know why you want passive income and have decided how much time and resources you can invest into your new project, you need to research the best passive income project for you. For example, you could create an eBook, lend money to peers, rent a home, create an online course, invest in dividend stock, etc. Once youâve decided which passive income option is right for you, itâs time to actually start creating your product.
Step Four: Develop Your Passive Income Project!
Now that youâve decided on your project, itâs time to begin. Set a deadline and create an action plan. For example, if you want to create an eBook, you could set a strict completion deadline for three weeks from your start date. You may decide to dedicate 30-40 minutes each day towards writing chapters and completing the book.
Once you finally complete and sell your passive income project, remember that you may need to maintain it. For example, if you sell an eBook, you will need to market it to the public and possibly make corrections and edits within your book. Each passive income project is different and will require a different level of maintenance.
Creating Streams of Passive Income
Creating passive income is easy when you follow these four steps. Remember that is important to first understand why you want passive income. Once you decide your reasons for wanting passive income, youâll need to decide how much time and money you are willing to invest into your project. Next, you should decide which passive income option is best for your needs. Finally, youâll need to develop and maintain your project. Following these steps will help you create your first passive income project and in time will ultimately help you create a passive income portfolio filled with passive income streams.
Do you have a passive income job? How do you like it?
Photo: Flickr:Â Toon Pool
Like Saving Advice? Subscribe!
Subscribe to get the latest Saving Advice content via email.