“Make money while you sleep” sounds like one of those “too-good-to-be-true” advertisements you see while scrolling through Google or Yahoo. “Work 5 hours a week and live like a king” is another common discussion thread that’s hardly believable. While the level of effort may be understated in the ads you see day-to-day, the benefits of passive income can’t be overstated!
Earning side money from a few weekend or evening hustles can set you apart on the journey towards long-term financial empowerment. It may take hundreds or even thousands of hours worth of effort, but you too could one day be the guy/gal making money while you sleep, or working five hours a week. It’s actually NOT too good to be true!
Part of the financial independence message we preach on Home At 30 means finding new ways to think about your career. The traditional path, trading your time Monday-Friday 9am-5pm, for dollars, is becoming more outdated year by year. Find ways to set up side hustles where money works for you, and you take the next step in leveling up your financial know-how.
Below are a few benefits of getting a passive income business started. I’ve also outlined a couple of brainstorming ideas and links to get you started.
Benefits of Making Passive Income
Let’s run through an example
The initial grunt work required to get a source of passive income set up can start reaping rewards for you quickly. Creating something that can be put out on the web indefinitely equals a 24/7/365 revenue source. In today’s digital age this will have you potentially raking in the cash while you sleep.
For a simple example to get the mental wheels turning: Let’s say you know and enjoy building WordPress websites as well as anyone. The ability to build sites, and learn how to do so intuitively, is a high-demand request in today’s world. 90% or more of the population wouldn’t know how to get a website up and running if you asked them, right? Here we have the opportunity to add value to someone’s life by our set of skills. What we do with that ability affects our passive income potential!
Making Cash While You Sleep
Realizing the value that a WordPress site building expert has, you are put at a crossroads. Trading time for dollars vs making your skills work for you after an initial upfront investment. How do you scale your skill into a source of passive income?
Take your WordPress knowledge to video or paper (or both). Write an e-book about “intuitive WordPress building techniques for non-technical people”. Create a few homemade video resources coaching people on how to build the sites step-by-step. Find a way to add some value where it’s needed, and create a physical offering around that need. Once the e-book/video/etc. has been created, you have yourself some intellectual property!
Take your newly created resource and sell it on Amazon. Add it to a website of your own. Advertise on LinkedIn, Facebook, anywhere you see the opportunity to help out others who might need it. Opening up these channels opens the gateway for $9.99’s to start rolling into your bank account while you sleep. Find a way to prove out the value of your offering vs the small upfront price, and you’ll find yourself in a great spot to be making some passive income.
While the upfront work and effort may be there, once you have something to bring to market it’s as simple as that!
Monthly “Expenses” Will Never be the Same
Eventually, you’ll find your passive income boosts to a respectable level (providing your expertise is actually worth it!) Getting your passive income up to a point where it impacts your monthly expenses is when you get into the real game-changing aspect of things. This is why so many people chase it to begin with.
Things like rent, grocery bills, car payments, etc. can be target expenses against which you goal-set levels of passive income. For example: thinking about a $400/month grocery expense, you can “write-off” the cost of your food indefinitely by creating a passive side hustle which nets you $400/month.
Back to our WordPress example: After several months of channel promotion and selling, you might find 40 or so people buying your e-book per month. That money rolls in 24 hours a day, but from now on you can think of all your monthly food expenses as directly related to that effort you put into making that original book/video. Pretty cool if you ask me.
The freedom you gain from setting milestones of side income against your monthly expenses leaves you much less “on the hook” with your career.
Work More So You Can Work Less
The passive income advertisements mentioned in the intro often project a lifestyle of passive income while sipping margaritas poolside. They don’t, however, get into the level of upfront effort required to make that lifestyle a reality. If it were that easy, I don’t think any of us would be in traditional 9 to 5’s!
Upfront hard work equals long-term passive income coasting. This might mean working weekends for a while. It might mean forcing yourself to stay awake after a stressful and lengthy day at work. Honing your craft takes effort above and beyond the “normal” expectations society has of a 9-to-5’er. The rewards speak for themselves after an upfront investment, however.
Start working on something (ANYTHING) on the side of your main source of income. It can be a hobby you enjoy or a new skill you’d like to pick up. Putting in that upfront effort will have you adding to a skill set you can eventually turn around into passive income. Work more now, with the understanding that all of your efforts today mean more relaxation down the road.
Keep it Focused on Adding Value
To sum things up, any source of passive income you strive to create should have an underlying factor of value. It’s much the same way that large organizations or startups think, but on an individual level. It could be WordPress blogging, it could be yoga, basketball, financial advice, anything that makes life more streamlined for the end customer.
Figure out your own personal Venn diagram of skills versus what’s available out on the market, tailor a solution around that, and you will be off and running on the passive income journey of your own. Hopefully, my perspective was helpful. Happy hunting!
All opinions expressed on this blog are solely those of Home at 30 and are in no way affiliated with any other organization or institution. The purpose of this blog is to give general education and information about investing, wealth, careers, and college; It is not intended to be professional advice.
Author: Joe Savoia
Joe is a 2014 graduate of Northeastern University and currently works in a field sales role for technology company Acquia. He has worked internationally as one of Acquia’s earliest Australia-based employees and helped in the early stages to develop that region. Today Joe is based out of Boston and lives in Somerville, MA. Joe’s primary interests vary widely, including everything from robotics/AI to finance, blockchain, and the rapidly evolving world of tech we live in.