Many visitors of Hustle Domain want to earn passive income so they can live their dreams. And frankly speaking, who doesn’t? Given the choice, most people would want to quit their 9 to 5 and trade it for a life of wanderlust where they get to travel the world. After all, there’s no better flex than to wake up each morning and do whatever you want. But how does one earn enough passive income to allow them to retire and live off their side hustle? In this post we explore what really is passive income and talk about some ways of earning some of that dough.
What is Passive Income?
Though this is something that we talk about often here at Hustle Domain, its important to highlight what passive income truly is for new visitors. Simply put, passive income is money you can earn without actively putting in work consistently. Though there maybe some work involved up front, but once established, a source of passive income can pay dividends for years to come.
Another way to look at this is by examining the alternative i.e. Active Income. This is where you have a conventional 9-5 job that pays you a salary which in turn allows you to pay your bills. In other words, you are basically a step away from poverty. The minute you lose your job, your source of income vanishes.
What does it take?
Though it sounds lovely to earn money without lifting a finger, but this is where you’d be wrong. Setting up a stream of passive income (or several) can take a lot of time, effort and sometimes even money. It requires a lot of patience, hard work and discipline to become successful which is why it isn’t for everyone. Sometimes it can be a long and lonely road and if you aren’t ambitious, you might give in too early or too easily. Most people building a side hustle, often do so while working a regular job which makes it extra difficult. But if you persevere through it all, it’s a rewarding experience.
In the rest of this post, we will look at some sources of passive income which, once successful, can help you live a dream life!
Become an Influencer
These days a lot can be achieved using social media. Using it as a medium for obtaining passive income is one such use case. In recent years, a lot of platforms have become a source of income for folks who have come to be known as ‘influencers’. This is a term which is basically used to identify experts within a specific niche. Be it make up, travel, fitness, cooking or anything else, there are influencers in every field.
If you are willing to create compelling content specific to a niche and are able to post it on social media platforms like Instagram on a consistent basis, becoming an influencer might be something worth considering. By posting consistently (at least once a day) and using post appropriate hashtags, you can build an audience. Once you have managed to build a sizeable following, you can start reaching out to brands (or sometimes they reach out to you) for making sponsored posts. Since all you need is an internet connection and a phone to be an influencer, you can travel the world while earning money.
Dropshipping
Dropshipping is a simplified way of selling online. The conventional way of doing business usually consists of buying things at a cheaper price (often in bulk quantities), storing it until you get someone to buy it and then selling it at a higher price. The way dropshipping simplifies things is by allowing you to find a supplier for a product with whom you negotiate a whole sale price. You then create an online store where you begin selling the said product at a marked up price. When you get a customer who purchases the product online, you send the order to the supplier after the customer pays you and the supplier ships the product directly to your customer.
In this model of doing business, you don’t have to worry about tying up your capital by purchasing bulk goods and then having to worry about storing the inventory. Rather most of the heavy lifting is done by the supplier while you simply take care of bringing in the customers. Since most of the business is conducted online, dropshipping can be a source of passive income that can allow you to travel the world while working via a laptop.
The Stock Market
Investing in the stock market can often be a profitable way to earn passive income. However, more often than not, it is a game of patience. Specially if you don’t have a lot of money to invest up front. Investing in stocks for companies that pay dividends to their investors, can be a great way to earn passive income. But as mentioned before, it can take years of investing steadily into your portfolio before it starts returning dividends that can qualify as a source of passive income.
Don’t expect to retire on dividend income overnight if you are currently working a 9-5 and only have a little left to invest after your expenses. But if you have a knack for business and understand how companies work, you can use that to your advantage and do your research to find companies worth investing in and building a profitable dividend portfolio.
Real Estate Investment
We have talked about real estate as an investment in the past as well. It is worth mentioning here once again. The benefits of having a rental property are immense. Not only do you have a tangible asset but also one that usually appreciates over time. At the same time, you can depreciate it on your taxes for several years and claim deductions. Though it takes some money initially to get going, but once you begin generating rental income that is enough to cover your property expenses (taxes, fees and mortgage etc) and some profit on top, it is quite rewarding.
With careful long term planning, you can actually create a portfolio of multiple properties. At that stage, you can hire a property manager to look after your assets and deal with tenant complaints, maintenance issues etc and be truly hands off to enjoy life with your passive income.
Create a Blog
If there is a particular niche that you are an expert in and you enjoy writing, you can combine your passions together to start a blog. Similar to becoming an influencer on a social media platform, running a blog can be lucrative albeit time consuming. Though it doesn’t take much these days to start a blog from a technical perspective, it takes a long time to build your reputation as well to create insightful content.
Once you do manage to attract traffic to your blog however, you can monetize your blog. There are many ways of doing so. You can sell products, services, use affiliate links or sponsor products or companies. Once established, a blog can be a great source of passive income which can be run and maintained while you travel the world.
Conclusion
It should be apparent by now that having a stream of passive income can provide you with the freedom needed to be able to do whatever you want upon waking up. This sort of freedom can help you break the shackles of spending your life at a conventional 9-5 and give you the ability to travel the world should you decide to do so without worrying about financial limitations and obligations.
Disclaimer: Like all other posts on Hustle Domain, please keep in mind that this post is for educational and entertainment purposes only and is not meant to be financial advice. Please practice caution and do your own research before investing.