[work in progress]
Why am I interested in passive income?
I am primarily interested in passive income not for the purpose of making additional money on top of my job but for the freedom it can potentially give. I consider passive income as an opportunity to break from the traditional day job and to dedicate more time to the people and the passions you love the most.
Let’s define passive income first. Passive income is the ability to earn money while you’re not actually performing a task. Another way is to understand what is is not: an active income is a trade of time against an wage, based on qualification or abilities.
They are countless examples of passive income strategies for instance investing in stock market and order property rental, but also books, online courses or even a blog or a YouTube channel. Thanks to Internet the ability to generate passive income is reachable too many across o’clock
Tim Ferriss books have inspired thousands to change their lifestyle, some of them through passive income.
Finding your own passive income strategy
I categorise passive income in two subsets first one is passive income link to your passions where are you actually perform something that you enjoyed doing. You can create a frame to incorporate an element of cash flow generation. The second subsets is purely based on making money. Taking the stock market as an example: investing in stocks would be the later m but if you were write a blog about investments and you happen to generate revenues thanks to the ads, that’s the first subset. Both can come in different scales and ambitions.
In all cases, the most important is to put the right amount of initial work on to kickstart the engine.
Personal interest based passive income strategies
Let’s focus first on personal interest based passive income. Idea is to leverage on something you are genuinely interested and passionate about and produce content. Chances are that across the Internet few hundreds of people that share the same interest. Let’s see you enjoy baking, why not putting your favourite recipes on a blog or shooting little clip with your smart phone and upload it on YouTube?
Examples of personal interest based passive income:
- YouTube channel
- Affiliate marketing
Business based passive income
As for this category you’re not trying to leverage on any specific passion you may have but looking to tap an opportunity. Real estate can be put in that subset.
Examples of business based passive income include:
- Stockmarket investing
- Real estate rental
- Shipping goods
- Professional blog
- Online courses
The content generating step is crucial And often overlooked has people spend most of their interest in trying to get the content viral. Indeed that would be an important step but content comes first.
Take a moment to listen to this podcast episode by Tim Ferris about single people business generating over seven figures revenue – here.
I am a fan of the website kit.com that helps you to build recommendations and integrates automatically all the elements of affiliate marketing. I use this primarily to build up and share reading lists. As reading is a main passion and activity for me, I always enjoyed recommending books to my friends and kit enables me to do it on a much higher scale.