When people hear PASSIVE STREAMS OF INCOME the bells and whistles start going off in their heads. Instantly they’re on board because, hey, who doesn’t want to make extra money . . . or in some cases boatloads of it? But the fact is that you don’t get something for nothing. And this revelation is what separates the top passive income earners from those who are on the sidelines marveling at how they did it. Here are six other things you need to know about passive income before you get started.
2. Realize that passive income isn’t 100% passive. Yep, that means that you still have to “DO” something–put some ACTION to what it is that you desire to accomplish so that like the gas in a car, it will move forward. Many people are attracted to the passive income models because they believe that they’re similar to hitting the lottery. I personally work with my clients on setting realistic goals and implementing strategies that tie into what they’re already doing. This makes it easier to keep it an actionable item on the daily “To Do” list.
3. Don’t let the passion wane. This is HUGE! Fact is like that gym membership that we sign up for to meet our New Year’s Resolution goals, after awhile if you aren’t careful the desire to accomplish what you started out to accomplish can wane. The way to assure that is make sure you’re plugging into things, people and products that you’re really excited about sharing with others. This is what will ultimately drive those monthly or weekly deposits and keep the income streams lucrative. A great rule of thumb is to ask yourself, “Is this something you’d promote for FREE?”
4. Understand money. Fact is if you don’t master money, it will master you. People in debt don’t need more money, they need to learn how to get out of debt and how to manage money better so that it works “for” them, not against them. Passive Income is a great way to save up a cushion for retirement, don’t use it dig a deeper debt hole or create a flashier lifestyle. Money can be a friend for life that gives you dividends, it’s time to make the official introduction.
5. Stop taking advice from those who aren’t where you want to go. Like our friend Dave Ramsey says, “Don’t take money advice from people without a plan. If your broke friends are making fun of you you’re on the right track.” In addition, you can’t tell everyone what you’re doing anyway. You need encouragers and supporters in your corner. Surround yourself with people who are on the same path and you’ll see a huge difference in what you can accomplish.
6. Realize it doesn’t happen overnight. When I first started with passive income I was just so happy to get a check for $100 every month from doing something I loved, I immediately wanted to know how to duplicate that times 100 so that I could begin assisting my husband with padding our lives for retirement. Many scoff at $100 however, if you have products, tools and information that someone else needs you’ll understand how easy it is to maintain several streams of income with consistent effort. You can turn those $100 checks into $1000 check and beyond. Trust me, it’s still one of the best decisions I’ve ever made.
7. Understand that there is some risk. Everything comes with risks. The truth is that you’re not just going to earn, earn, earn without having to INVEST in something; oftentimes several somethings. Whether it’s an initial product, a website to host information on or feature it on and lots and lots of time and effort on social media. The upside is staying committed to what you want to accomplish DRASTICALLY decreases that risk.
Lionel Yeo of Cheerful Egg says: “If you’re waiting for that weird nerdy eggy blogger to spoonfeed you the answer of “How to boost passive income with no risk” or “10 stocks you should buy in the next 6 months”, you’ve already lost. You don’t understand the massive amounts of time, work and value it takes to truly become wealthy.”
Moral of the story, YES, PASSIVE INCOME does have that sunning in the Riviera get rich quick appeal, however, it’s still a business. But if you’re up for the challenge, the dividends can be TRULY AMAZING! I’m a witness, in sunny Virginia Beach!