People are always asking the million dollar question; if passive income is so easy then why doesn’t everyone do it? The answer is very simply actually- passive income does require effort. Wait a minute, doesn’t that defeat the whole purpose of passive income? Wrong. Just because it is considered “passive” it doesn’t mean that setting it up is passive. People think that passive income should come with very minimal time and effort. When those people find out they have to work for passive income they are often shocked, but really what did you expect?
Today I will be briefly discussing the effort required to set up a decent stream of passive income. I was wandering why passive income isn’t as easy as it seems. Then it hit me and next thing I knew I was writing this article. Listed below is the effort required to set up a stream of passive income:
- Research – You must conduct proper research on the various streams of passive income to determine which one is best suited for you. Bad credit? Then investing in a rental property may not be for you. Short on cash? Then you definitely won’t be earning a killing off dividends. Excellent writing skills? Maybe writing a book or ebook is the best option for you. The research stage takes a ton of effort and dedication.
- Initial setup – This is the stage that scares almost everyone away so beware. After you have chosen your stream of passive income, whether it be dividends, rental income, blog, book, etc. you must now work on getting it off the ground. If you plan on writing a book or running a blog then boy are you in for a major shocker. You have will have to work for months and months without seeing a profit. Once you have completed that book you will have to worry about trying to sell it somehow. The amount of effort required at this stage makes you wonder if this so called passive income idea is even worth it.
- Maintenance – Congratulations you have somehow managed to survive to the point that you are actually earning passive income. Time to collect the money and retire early right? Well wrong again. Now you must put in effort to ensure that this source of passive income stays alive. If you are earning dividends you must watch out to see if the company has cut the dividend. If you are running a rental property then you will have to doing work on the unit. If you have written a book then you will have to update or watch out for competitors.
Yes I know this is a very general outline and you could probably come up with many other ways passive income requires effort.