#5: I Want to Make Passive Income.
I want to start making passive income today.
Working for The Man is so, like, eleven years ago. Say good-bye to the 9-to-5 and hello to SEO and online marketing. Passive income is the future. I'm positive of it.
How did I learn about passive income?
I’ve always worked for The Man. Between The Standard, Edward Jones and Moda Health, I’ve worked for one Man or another for the last eleven (eleven!) years, and that’s nothing compared to some people.
Working for The Man means a lot of things. It means stretching 10 days of Paid Time Off into multiple vacations by scheduling around Federal holidays. It means squeezing personal phone calls, errands and exercise all into an hour-long lunch break. Most importantly, it means trading time—9 hours a day, 5 days a week of my time to be exact—for a bi-weekly paycheck.
Now, the point of this post is not to diss the traditional Office Job. As a single mom with financial obligations up her pencil skirt, I rely on income in the form of frequent and regular deposits into my checking account. The point of this post is that I recently learned there are other—dare I say more efficient?—ways of making money.
By efficient income, I mean income that doesn’t come at the expense of time. The official term for this is Passive Income, and I was inspired to learn more about Passive Income from—not surprisingly—my new friend Shad. Shad who hasn’t worked a day at a 9-to-5 in his whole life. Shad who never heard the term PTO until he met me. Seriously.
What did I learn about passive income?
Some types of passive income I already knew about, I just hadn’t considered them as viable sources of income because I don’t have enough money to generate noticeable cash flows. Examples include investment income like interest on personal loans and dividends on stocks. When I’m a millionaire, I will revisit these ideas.
But for right now, while I’m still amassing my millions, there are more practical ways to generate passive income. Subscription newsletters, e-books, blogs, and online classes or “programs” all fall into this category, as would anything else that I can produce one of and generate more and more income off of it simply by expanding the user base. LOVE IT. Totally going to start doing it.
My journey to passive income started with James Altucher, who says office jobs and college are things of the past. James Altucher writes these huge long blogs that fill my inbox almost every day and some times twice a day. I don't have the time to read them all the way through, but I do scan them and what I've learned about James Altucher is that his real value is who he knows. One of those people is Ramit Sethi of I Will Teach You to be Rich.
Other passive income gurus include Pat Flynn of Smart Passive Income. Pat Flynn introduced me to the best resource for getting started making passive income, and that is Clay Collins of LeadPages.com. Pat Flynn interviewed Clay Collins recently, and the result was this masterpiece.
What else did I accidentally learn along the way?
One key to personal wealth is to create multiple sources of income. And it’s not as much about the value of each individual source, but how many sources you have. Millionaires apparently have on average 7 sources of income, and billionaires even more. Look at Trump! He’s “in” real estate, hotels, golf, casinos and, of course, reality TV. And those are just the industries we know about.
I also learned that one common way to make passive income is to write an e-book about how to make passive income writing e-books. Circular, isn’t it. Save your money for entrepreneurs who are selling an original product, idea or knowledge.
And of course there's that old adage, the more you know, the more you don't know. Having an online presence requires digital literacy, something that does not come naturally to me. Fortunately, there are so many talented individuals who make a passive income by teaching people like me all the skills they need to have in order to start making passive income, too. It feels a little codependent, but as long as we're all happy... Two of the most important skills are social media and writing for SEO.