Passive income is a source of income which generates money without you being present or working hard. You might ask, is that even possible? Yes, thousands of people have done it!! A popular example lately is the sales of products and services online. Exactly how to actively start your own passive income? This article outlines the steps.
First, generate ideas. You need to set your mind to actively churn out ideas while you are doing other things. Always carry a notepad and pen with you so that you can keep a log of all your inspirations and ideas. Commit yourself to come out with at least one idea per day. You may start by thinking around your areas of interest.
Second, try it. Once you have generated several ideas, start trying them out in order to see whether they are workable, including those that might sound absurd. For example, if you can draw well and want to earn money by selling your cartoons online, start drawing it to see how it works!! If you don’t try them on, your ideas will gather dust and you will forget and lose your initial passion about it.
Third, shortlist ideas. Select few that you think are the most workable and you are more likely to be able to commit. Do take your financial status into consideration as some passive incomes require a capital to start and maintain (e.g. sale of products online, property investment) while others require low or no start-up capital (e.g. sale of services and e-books online).
Fourth, plan it. With a shortlisted idea, plan how you want to develop your income stream. Find out other people doing the similar thing and how they are doing it. Give it a go, even if it does not work well from the beginning. If it does not work out, at least you have tried and now you can move on to your other ideas.
Fifth, save money. While your passive income might not necessarily need a large capital it is best that you save some money from the beginning. This allows you to see the outcome of your active actions on your passive income and allows more flexibility in growing your income stream later on. Once your first passive income has become steady, use this fund to work on the second one, and then third one!
Before long, you will have multiple passive income streams which are flowing steadily and making you financially independent!