The Purpose of Passive Income

Now, this is a topic we can sink our teeth into. 

Maybe it was a result of the national stay-at-home order, or maybe it was just the collective impact of people deciding to do a little more with their time, but we’ve finally started to normalize side hustles. Yes, the name sounds a little suspicious but in reality, it is only terrifyingly ambitious. 

You see, a proper side hustle is something you embark on apart of your current profession at the risk of braving your passions for the world to see, and hopefully, compensate you for. Proper examples are things like selling artwork, publishing books, diving into real estate, and so many more things. Truly any passion project that you can convert into added income qualifies for the title of the side hustle. 

 Our favorite kind of side hustles, however, are those that you can turn into passive income. That’s right, passive, as incomplete it – forget about it – and still reap benefits from it. According to a bunch of money gurus, passive income is the holy grail of finance, and it’s something everyone should at least consider. 

“Even if you love your job, I’m willing to bet you wouldn’t mind earning some extra income without the blood, sweat, tears, and time commitment of another job.”

- Dave Ramesy

The specific reason that we find them so appealing, and decided they were worth talking about, is that this added income can fuel your current investment contributions. Imagine, not having to dip into your weekly pay to add to your retirement fund, and instead, add money to your future from a fountain of forgotten wealth. So to get those wheels in your brain turning as to how you could incorporate a side hustle into your investment journey, we’ve listed three of our favorite ideas. 

 

Write a book

Have people told you your life could be a movie or that you give amazing advice? Maybe you have crazy dreams that would make a great fiction piece? No matter the genre, if you dabble in the written word taking the time to sit down and put your thoughts to paper might be beneficial. Plus, we live in a time where you don’t necessarily need to beg a publisher to like your stuff. Thanks to things like Kindle Direct Publishing, you can now be empowered to upload your own stuff. How is this passive? Every time someone pays to download your e-book, you’ll receive some compensation, the more downloads the more income, and the more money you can put towards retirement. 

 

 

Create a podcast 

So maybe your grammar isn’t where you’d like it to be, or maybe you just hate the idea of having to type your thoughts and edit your own words? Well, podcasting might be for you. This conversational medium still allows you to share your life, advice, and view with the world without having to worry about all the technicalities of writing mechanics. Sure, you’ll have to pitch in a little money to buy the equipment you might not have, and you’ll have to be strict about your uploading schedule, but depending on how popular your content gets you could end up in a situation where you’re generating revenue from episodes you recorded months ago. Podcasts also have the potential to gain sponsorships and brand deals if your audience becomes substantial enough.

 

 

Teach an online course

Maybe you aren’t a written person, and you don’t like the idea of people only hearing your voice? Maybe you’re a jack of all trades with a lifetime of hands-on experience? Creating and teaching an online course might be the right kind of passive side hustle you need. Given the state of the pandemic, people have been turning to the internet for things they usually seek out in person. Traditional academics, workout classes, and even book clubs have been moved online thanks to COVID-19, and while we miss the scheduled socialization these outlets provided us with, there is a light at the end of the tunnel. People are bored and in order to fill the new holes in their schedule, they are more likely to pick up new hobbies and focus on other methods of self-care or personal growth. So, that leaves room for you to create a course on something you know better than most people, and rake in a little extra cash for it. Popular platforms for this kind of thing are Skillshare or Thinkful, but of course, use whatever hosting service makes the most sense for you. 

 

 

At the end of the day, your time is valuable and we aren’t trying to push you into thinking you’re being wasteful with it. We just want to be as helpful as we can in encouraging you to not give up on starting a retirement fund because you aren’t currently in a position to part with any of your weekly pay. The sooner you start contributing to your future, the better off you’ll be when that time comes around. Plus, we know how creative and ambitious you are and if starting some form of passive income was already on your radar, please take this as a sign to dive into it headfirst. So, when your side hustle starts booming and you’re ready to open the investment account of your dreams, we’ll be waiting. Just promise you won’t forget who encouraged you to do it in the first place.