Warren Buffet once said this - If you don't find a way to make money while you are asleep, you will die! Wait! I got it wrong! I mean, you will work until you die!
And guess what!!! A guy followed the advice and earned $16,000 a night just by sleeping.
One popular way to make money while asleep is to have passive income. You will find tons of articles and videos on the internet about passive income. Everyone is like - You get a passive income! Everyone gets a passive income.
But my question is - if getting a passive income is so easy, why isn't everyone a millionaire by now?
What exactly is passive income? In simple terms, it means that you are earning money automatically without doing any work! Like, magic...!
With passive income, you no longer have to be stuck at your nine-to-five job just to earn money, because now money is like falling from the sky for you and doing all the things you want. Like - go to the beach, travel around the world, be a monk!
Sounds good, right?
Eh... not really, because there are some problems with passive income.
Easy ones give a low return
Passive income that is easy to do gives a low return. If you look at some forums, most people will say passive income mainly comes from dividend stocks as it is the easiest way of passive income. You buy the stock; you earn dividends. So simple!
Yes, you are earning money automatically. But the reality is the return is so poor, which may not give you financial stability.
For example, the current dividend yield of the S&P 500 is 1.69%. So if you invest $1000 in S&P, you are getting only $17 income per year, which is too low. That's definitely not enough for you to quit your job. At most, you can get only a decent meal in any posh restaurant. That's all!
However, even in the case of stocks that pay dividends, that's still not entirely passive income, because it requires a lot of work before (finding and researching the business) and after (monitoring it).
If you really want to live off your passive income, you will need a lot more money. For example - if your monthly expense is around $2,500, then you need to invest on S&P approx $1,775,150. Only then you will be able to cover your costs without doing anything.
Hardest at the start
Let's just give an example of my Hive ride. When I started my journey at Hive, I was getting very poor income, like just a few cents. Nobody gave upvote; novody got time to read my articles. You know it's so painful when you spend hours writing something or creating something, and nobody gives a shit! Most of the content creators leave the platform at this stage.
But I never lose hope and post continuously. And slowly, people started to read my content, earning a decent income. I also delegated a small amount (1000 hives) recently to @indiaunited, and guess what? Delegation in the Hive platform is also one of the best passive income sources.
The only reason I continued my journey at the start without being paid is - passion! So, that's another truth of passive income. It will be the hardest at the beginning!
Not passive at all
Will you earn free money after setting up your passive income source? The answer is no! You need to maintain your passive income, which means it's not passive at all!
For example - rental property. At first, you need to buy a property and rent it out for passive income. But it's still not passive as you need to check it out from time to time. If your tenants destroy something in your property, it will lessen the property's value. And if any issues come in, you need to go to your property and solve it.
But the good thing is you don't have to check your property every day. I am trying to reveal that maintenance is needed in passive income; you can't just expect to shut your eyes and get the same earnings every time!
My thoughts...
Now you know some truths behind passive income, let me share my thoughts. Having a passive income doesn't mean that you have to retire from everything. For example, Elon Musk is really busy with his business and barely has time for passive income. Well, unless he quits his job as Tesla CEO and delegates Hive to earn while he is sleeping!
To be a rich person, you must be an expert at what you do! For example, instead of being an average programmer, learn management skills as well to lead people. Rather than being a waiter, learn more and try to be a restaurant owner. I may sound easy, but I know it's definitely not easy. It is just what you need to do if you want to be successful and get rich.
The idea here is - Be very good at what you do, earn tons of money from it, and use the money to create your passive income.
Also, remember that passive income sources should come from your passion.
For example, here're some passive income ideas. I like to write articles, and I have some affiliate websites which give me passive income. Writing blogs and managing websites is a passion for me, and I love it. It's hard to earn money from the things you don't like.
For me, passive income is the way to go if you enjoy retiring early. Since I was young, I have been curious about all sorts of investments; some are good, and some are not so good. Like the recent crypto bear markets and terra crash, I lost quite a bit of money. But, that will not stop me from trying out different investments as long as I feel there is potential and the returns are promising.
If you succeed at creating a passive income source, it will be worth all the hard work. And probably it will make you rich in the end and give you the time for your leisure and enjoy your relaxing time!
Posted Using LeoFinance Beta
My thinking is that an active income leads to a passive income, especially here on Hive.
Like you said, there is always some level of 'work' (shudder) that needs to be done, but it can be achieved!
Posted Using LeoFinance Beta
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