What is Passive Income?
+why you need it.
Can I be honest with you? I don’t love the term passive income, It’s totally misleading. Passive income always requires an initial investment of time, money, or both! Then, once you’re past the initial investment, passive income still requires maintenance. So, truthfully, passive income isn’t completely “passive.” This shouldn’t deter you from pursuing your passive income dreams. In this post, I’ll talk a little about the idea of passive income and explain why having multiple streams is the best way to reach your goals!
TIME VS. MONEY
Starting your passive income stream requires an initial investment of time, money, and sometimes a little of both.
It’s actually a bit of a balancing act. The less money you have to invest, the more time you’ll have to invest.
The more money you have to put toward your passive income stream, the less time you may need to spend on it. My advice, however, is even if you have the ability to hire someone to run your passive income stream for you, still take the time to learn about your investments. Ask the tough questions and find the answers. Even with the most passive income sources- for example, investing stocks, you’ll be more successful if you take the time to learn about what you’re investing in or working with a financial planner. After all, it’s your money and you deserve to know what it’s doing for you!
MAINTENANCE
That thing you created, whether it’s a rental property, course, or stock photography portfolio, will always require upkeep. You might have to update your course with current information and you’ll definitely want to continue to advertise your course in various ways.
If your passive income stream is from stock photography, your portfolio will need to be updated consistently with new work.
If you own a rental property you probably have a long to-do list for maintenance on your property. No matter what your passive income stream is, it’s important to consistently provide maintenance and updates to keep things current and running smoothly.
THE TRUE BENEFIT: MULTIPLE STREAMS OF INCOME
The true benefit to passive income lies in the ability to build multiple streams of income. Turbulent times have shown us that one stream of income is never enough.
Did you know that most millionaires have at least 7 streams of income?! If your main source of income is working with clients, there is a limit on how many clients you can serve.
Having another income stream becomes pretty vital when you reach your client capacity but still aren’t reaching your income goals.
At the end of the day, if earning passive income were easy, everyone would be doing it. Don’t be discouraged, though! By getting a little more strategic with your time management, you can create a space to build your passive income stream. And who knows, maybe one stream will turn into two, and two will turn into seven!
Want to explore some of the best passive income streams for you? That’s exactly what I help my clients do in one-on-one coaching or specifically for Stock Photography in my Photo to Profit guidebook!