The ability to generate a passive income is a kind of holy grail for entrepreneurs. For some, passive income may be almost an afterthought, a small side project that generates enough cash to go out to dinner, buy a few books or pay the utility bill each month. However, for others, passive income can mean early retirement. Creating a substantial passive income can be challenging, but the rewards can be great.
Set Goals
In order to stay motivated and track your progress, it's important to set goals that are both concrete and measurable. What are the ways you can save money without changing your life and are they attainable? How much money do you want to make by certain set times in the next few years? How do you plan to accomplish that? Goal setting is important whether you want to make $200 or $20,000 per month. Keep in mind as well that one element of setting goals is defining your terms as specifically as possible. For example, instead of saying that you want to make enough money to live on, write down what that amount is.
Take Your Time
It's always possible to point to people who enjoy what seems like overnight success, but there are two things to remember about this. First, you are unlikely to see all the hard work and time that goes into making that overnight success. Second, even if you are looking at one of the rare people whose rise has been stratospheric, it's best not to assume you will be in this same situation.
That doesn't mean that your idea isn't a great one or that you won't eventually be successful. It just means that there is an element of luck, and sometimes, people are in exactly the right place at the right time to take advantage of a trend. For everyone else, if you're planning to create a brand online and make money through people paying for videos, online courses, or eBooks, for example, you will need to take the time to build recognition and trust.
Real Estate Opportunities
Being a landlord is one of the oldest ways to earn passive income, but you may assume that if you don't have the money to purchase multiple properties, this is out of the question for you. In fact, you can purchase a share of a rental property and earn income and appreciation on it. This can be a great way for anyone who has less money up front and who does not want to deal with the hassles of being a landlord to get involved in real estate investing. You can browse for a property that suits your needs.
Other Investing
This is one of the traditional ways to earn passive income, but as is the case with real estate opportunities, you do not need a great deal of money to get started. You can set up a brokerage account and start investing with just $100. However, before you do so, think about how risky you are willing to be and review your goals again. Your strategy will vary based on whether you are trying to generate money over the short or longer term.
