What is passive income?
Ahh, passive income. The kind of money you can just sit back, relax, and watch roll in. The kind of income that should be dependable, consistent, and scalable. For a more defined answer, passive income is earnings derived from a limited partnership, rental property, or other enterprise in which a person is not actively involved.
It’s common for passive incomes to be considered a second job. Given it is another source of weekly or monthly pay, as well as far more flexible and less time-consuming when compared to a part-time or full-time job, it makes sense as to why this salary option is becoming all the more popular.
There’s a bit of a myth going on about passive income though. That is, that the lucky people with this sort of income don’t move a muscle for their money. That’s not entirely true though unfortunately. I get it, passive means “not active.” But the people gaining passive incomes are actually working hard toward and for their success.
Most importantly, you should be protective of your passive income. Don’t just watch the clouds go by with this one. Pay attention and protect your way of money. If income with no effort is your ultimate goal, then you’re probably going to get scammed, take many risks, and end up in a less than good situation.
What industry could help someone make a passive income of $60,000 a year?
Rental properties. Hands down. This industry demands more time and effort than others, yet is a lot more rewarding, especially financially.
You’ve heard of the saying, “you gotta spend money to make money.” Well, it’s true in this situation. You have to own a property to be able to rent it out.
It requires initial investments and mortgage, market research, computer time, lots of phone calls, maid service requests, advertising, customer service, and so much more. But once again, it’s so worth it in the long run.
Worst-case scenario, you get wrapped up in a rental property and you can’t seem to manage it. Sometimes life needs you more, and you have to put the rental properties toward the bottom of the priorities list. Well, before you start to lose money and/or patience, hire a part-time property manager. He or she can handle the details and the “nitty-grittyness” that you don’t have time to tackle. Problem managed.
Now after the prep work is done, how do you ensure you’ll make money from this? Much less, $60,000 a year. First, perform an audit of your personal income and expense statement to figure out what your necessary living expenses are to support the life you want to live. What is your goal in revenue? (In this case, it’s $60,000) Calculate the number of rentals will it take for you to reach that goal. Then, map out how to set your rental property side hustle up to support these goals.
Next, pick your place wisely. Find an ideal vacation spot. The beach. The mountains. Somewhere beautiful and remote. Or a fun tourist town. Just be sure it’s place that is expected to have a year-round customer.
So what are you waiting for? Start earning your passive income now!