What’s the “Active” Part of Passive Income?
By Mel on November 2, 2023
More and more people are getting into passive income these days. Right now, one out of five homes in the U.S. has some kind of passive income. Usually, they’re earning this through things like rental properties or dividends from their investments. Sometimes, it can even be from a business they own.
But if you’re thinking about setting up a passive income stream, remember that it’s not always as “passive” as it sounds. Even if you’re planning to invest in stocks or properties, you’ll still need to make decisions or do some management. This means you can’t hope to earn money without putting in any work at all.
Even passive income needs an active plan.
The Importance of the Right Side Gig
Not everyone has the money to invest in stocks or properties, especially considering the rise in living costs and wage stagnation. That’s why a side gig might be your best bet.
Let’s say you start a blog. On its own, a blog might not make much money. But what if you add in online ads and sponsored posts? Sure, you’ll need to put in work writing and attracting readers. But as your blog grows, so will the passive income it generates.
The best side gig for you will depend on how much time and effort you’re ready to commit. This is why turning a hobby, like blogging, into a passive income source works great.
The Power of Digital Tools
A crucial part of any passive income idea is the digital tools you use. To keep the money flowing even when you’re not directly working, it’s best to have a digital platform.
You could set up an online business where you sell digital content, for example. Just ensure you’ve got secure payment solutions that can automatically deliver your content to the buyers.
Dropshipping is another good idea – you can sell products online without needing to handle any of the items by yourself. The right digital tools can take care of the payments and rest of the process for you.
Getting Help Where Needed
While automated tools can make things easier, they can’t replace the value of expert knowledge.
Side gigs usually don’t afford much time for learning new skills like accounting, content creation, IT services, or customer services. Outsourcing these tasks to experts can solve this problem. They’ll keep your business running smoothly, while you focus on what you do best.
So, is a passive income side hustle actually passive? Not really. Even though it might not consume all your time, you’ll need to think about how to operate and maintain it.
Posted on November 2, 2023, in the Earn More category.