Passive Income Challenge Day 20.
Start Small and Scale Up
When you decide to add passive income to your business model, don’t think that you need to replace all your income with passive income. You want to keep earning the way you earn now, and slowly add sources of passive income as you go. Always remember to learn and master one strategy before moving on to the next.
Start with What You Know
The easiest thing you can do when it comes to earning passive income is to start with what you have now and what you know. Stay within your genre and don’t go out on a limb with something totally new. For example, if you’re a virtual assistant who has created standard contracts, forms, and processes for your business – why not turn that into an information product to sell. That requires very little work to put together and is starting with what you already know.
Schedule Your Time Wisely
When you first start with your passive income goals, it can be tempting to spend more time than you should on it. Try to figure out how many hours a week you can reasonably devote to passive income (even if it’s just one hour) and stick to that for the first year. You want to still have a life while you’re building your passive income.
Keep Making Money
Don’t quit your day job whether that is a regular job or if you’re a small business owner such as a graphic designer or virtual assistant. Keep the money coming in so that you can afford to invest in passive income. When you first start, you’ll see money going out and time spent rather than having it come in and that can be a hard pill to swallow at first. But over time it will pay off.
Start Small and Scale UpStart Small and Scale Up
Use More than One Method
While you do want to learn one strategy at a time that you physically have to do yourself, you also want to use several methods that are essentially hands-off like investing in your IRA, buying stocks, and paying off debt. This simply involves setting up automatic payments one time and you’re done. Doing these things will also help you in the long run to achieve more than almost anything else.
Reinvest Earnings to Scale Up
When you do start earning from your passive income efforts, invest half of it back into the passive income portion of your business. For example, if you earn $100 from your eBook, use $50 to hire someone to write the next one based on your outline or pay a VA to turn it into an eCourse and get that published so that you can expand your income streams.
Don’t ever forget that earning passive income requires that you invest in active income first. You need money to make money, as they say. But, you also don’t want to do anything to jeopardize your future potential by getting into debt or spending money you cannot afford. Keep your day job and understand this is a long-term financial plan that will pay off after time. You’ll need both time and money to invest.
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