Passive Income Definition, Strategies, Ideas & Examples | Earn Beast

The Definition of Passive Income is basically you are earning huge amount of money just by investing your money or time. Let's explore Passive Income.

PASSIVE INCOME DEFINITION

Everybody wants passive income but very few people actually achieve. so we're gonna go over three things. Number one what exactly I consider to be passive income. Number two the types of passive income you generate whether you're just starting out with no money or you have billions of dollars saved up. And number three and most importantly why so many people fail at making passive income. So let's get it started with point number one.

WHAT EXACTLY IS PASSIVE INCOME?

So in my opinion something is passive income if it makes you money without you putting in any time what so ever besides initially setting it up. Because that's really what we think about what when we think of passive income is really. Just money coming in without you doing any work what so ever hence the name passive income right now. Obviously, there is some tinkering here and there just to make sure everything is running smoothly but generally speaking, it has to be something that makes money on its own without you doing any work. Now if you're like me and you're a skeptical kind of person when I first heard of passive income I thought that sounds too good to be true. You put in zero work and you make money come on Varinder that sounds like the BS so let me break it down for you.

TYPES OF PASSIVE INCOME

So passive income is broken down into two categories number one money you invest, number two times you invest. It's really important to realize that passive income is never free. Now you're probably wondering if you're not putting in any time or work then how is it not free money. It really makes you think it's because to make the passive income you're either investing your time or your money upfront and then it comes in without doing any work.

So what you need to do right now the first step to making passive income is to go look at your bank account. Looking at your bank account will allow you to see how much money you have and that'll determine which passive income route will be the best one for you. You can invest some money to buy passive income or instead will you have to invest the time to create it.

1) MONEY YOU INVEST

So if you look at your bank account and you decide that you have the money to buy passive income. First of all, congratulate your self for being in a financial position to even be able to do something like this. When it comes to buying your way to passive income it's actually pretty simple and you can see anywhere from a three to ten percent return your money per year. that's a pretty predictable scalable and consistent return on your investment without going too risky. So you don't risk losing that much money and that means for every ten thousand dollars you invest you should be able to buy your self 300 to 1000 dollars per year. A thousand bucks a year in passive income is cool but that's not a lot of money. What if I want to make a thousand bucks a month from passive income.

Well, then you need one hundred and twenty to four hundred thousand dollars to achieve one thousand dollars a month in passive income. Now I totally understand that 120 to four hundred thousand dollars are a really big range. But there's a reason for that right you have to consider that investing in leveraged real estate for instance is gonna take a lot more time and money to set up and also more time to manage every single month. Is obviously going to get you a better return than investing in an index fund. For example, because that only takes a couple of minutes set up and you have to do zero work. Whats ever to manage it anytime you are buying passive income there are three factors that really determined your return.

It's gonna be number one the amount of time needed to set it up, number two the barriers to entry in that investment vehicle. And number three how risky the investment is arguably real estate takes a lot of time to setup. There's a high barrier to entry and it's never really a hundred percent passive even with a property manager. It's more like ninety-eight and a half percent passive versus. Let's say an index where really it's zero time what so ever to manage it all. You gotta do is pick which index fund you want to put your money inlet the money grow massively over time. You do zero work what so ever and you get can pretty consistent return around 8% per year which is pretty good. So if you want to buy a passive income these are the steps you need to take.

Step One

Step number one decides how much risk you're willing to take the more risk you take generally speaking the higher the return you'll get. Are you comfortable with seeing months or even years go by with you making less money than you anticipated or months go by and you make more money you thought? Or would you rather have it be a consistent amount every single year? These are types of things that you got to factor in and your personality type to see what type of investment vehicle would be the best fit for you risk wise.

Step Two

Now the second thing to consider is how much time you want to spend managing your investment. Do you have time to go look at real estate and buy real estate? Do you have the time to manage tenants? Do you even have the time to speak with a property manager or instead do you want absolutely no responsibilities no time required? What so ever you don't do any work. But you still make money from your investment. This will ultimately determine what type of investment vehicle is the best fit for you. The more hands-off you want to be generally speaking the less the return you're gonna see.

Step Three

Then step number three once you determine how much risk you want to take and how much time you want to spend managing your investment. You can make the appropriate decisions to decide where you want to invest your money. Now for those of you that don't mind a higher time commitment a higher risk but a higher return. Now in real estate and using it as an investment property by renting it out. Is in my opinion probably one of the best options out there.

2) TIME YOU INVEST

Let me tell you a secret about making passive income with your time. It's really important to remember that you've paid in direct proportion to the amount of value. That the market place receives from your time. This means that if you can not show other people your value. Which means if they don't even see your product or service or the value you're trying to give them. Then you're not gonna get paid. Because you're not exchanging your value with them. Some popular ways to make passive income that might be a good fit for you. Writing and selling an e-book, creating a course on something that you're really good at that, you have a skill in. And you want to teach other people. You could license your photography pictures or your music there are literally so many different ways.

The most difficult part of making Passive earning

Now I have to say probably the most difficult part about making passive income with your time. Is really just making the first few dollars it's really easy to get discouraged? When you spend weeks if not months working towards something. But you see zero results back. However, once you start to see something coming in for your time I don't care if it's 50 cents a day a dollar a day. Once you see something -some little amount of money coming in for your time. You start to realize that you created this money with what seems to be almost like thin air. This is because you use your time to set something up initially. Which takes a long time to get going but once it gets going you know the money starts to keep coming in.

Then you just scale it up

Trust me on this though it's really just the first dollar that really is the hardest part about this. Because once you know you can make one dollar you know you can make ten once. You know you can make 10 you know you can make a hundred. Once you know you can make a hundred you can make a thousand. You can make a thousand you can make ten thousand right. Then it really just scales up from there. Because it only takes a one-time investment to create that video or create that product that you're gonna be providing to all these people in exchange for the income.

FIRST, $1 IS VERY IMPORTANT FOR THE TIME INVESTMENT METHOD

So keep pushing through it and make that $1 and really once you make that first dollar it is so motivated. Because you realize that wow I can make money for something that I'm actually passionate about. I can be anything I want whether it be you know makeup business social media. Anything that you want to make videos and start to monetize it. Because hopefully the reason why you started this passive income time commitment in the first place. Is because it's something you enjoy and not something that you just wanna cash out on after you make a bunch of money. You know it's something you want to continue for the rest of your life and I'll be honest with you guys it's not easy at all. Like if you want to make that first dollar quickly it's gonna take like 20, 30, or 40 hours a week without seeing any money back until you make that first dollar.

So that's why it's really important to pick something that you're really passionate about. You don't mind you know learning about investing your time and improving your skills in that certain type of niche. Because it's gonna take a long time and a lot of dedication and commitment before you start to make money back in that niche. And I hate to sound super cheesy on this but it's also just as important to work on your mindset knowledge.

If you don't believe you can do something I'm almost99% sure you're gonna give up prematurely this is because you start self-sabotaging your self. By thinking things like I can't do this. This isn't it for me, this isn't the right path. I don't see any results and you'll find a way to make yourself right there's actually a great quote. That says he who says he can and he who says he can't are both usually right.

NOW YOU KNOW BOTH TYPES OF METHOD

Now ideally in the perfect world, you'll have both types of passive income. Passive income that you bought for yourself through your investments. And the passive income that you created through your own time and invested your time into creating a product or service that brings you passive income. Every single month this gives you the ultimate exposure. Where one source of passive income is completely independent of the other source of passive income. And oftentimes when you make passive income from the time investment. You can just take that money you make from it and move it over to the buying side of passive income. That's why you're able to move it to a more stable safer way that still creates passive income for you.

Generally speaking, passive income created from your time is a lot more volatile. You could have some great months you could also have some very poor months also. Usually, there is a lifespan on the type of income. You can make so you can't like to create a video that'll make you money for your whole life. Whereas an investment will keep going forever right indefinitely. Now, this video isn't all about the types of passive income you generate. It's more so about telling you what passive income is how you can generate it and you know planting the seed in your mind. That it's possible for you to make it if you really want to eventually.

Affiliate marketing will also give you Passive Earning

What is affiliate marketing? In affiliate marketing, three parties are involved. There’s a merchant or an affiliate network, let’s consider it to be Amazon. Then there will be you, as an affiliate. Where you will be promoting the products of the merchant through a special affiliate link. So when someone purchases a product through your affiliate link, you get a commission, that is, you make money.

Now through my Affiliate Marketing Blogs, I’ll show you step-by-step on how to sign up to the affiliate network, how to generate your links, how to promote these links to thousands of people for free, and then make money from your links. Almost all popular companies use affiliate marketing to drive customers. Be it Amazon, Flipkart, Ola, Uber, Swiggy, Food Panda, Zomato- almost all popular companies are doing it. But the important question is, how affiliate marketing will help you. Well, the biggest benefit is definitely online earning on autopilot. To get rich, you have to be making money while you're asleep.

Google AdSense is the best option for Passive Earning

Google AdSense is a way for publishers to monetize their online content. AdSense runs their ads on your site based on your content and visitors. You make money every time a visitor comes to your content and clicks on the ads. Platforms such as blogs, YouTube, or Android apps can be. We have already written a blog on all the processes of making money through Google Adsense. There we have shared some of the best methods of making passive income through Google Adsense. This method is very simple. It's so easy that if you read this blog carefully once, you will absorb it. This will allow you to earn more money from now on. The platforms I will talk about here are all free.

I really want you to create your own passive income empire. Whether it be through buying it or creating it with your time. I really want you to go out there and you know to create your own passive income streams. And come back to this blog and say thank you for changing my mindset about passive income.