Are you trying to create a passive income stream so you can quit your job? Or saving up for a nice vacay, unexpected emergencies, or just a rainy day? Creating a passive income stream can help you achieve those goals.
Passive income simply means you are not trading your time for money. No dollars for hours. But before we continue, let’s get one thing clear:
Creating a passive income stream does require some work.
Yes, a passive income stream allows you to make money while sleeping but the effort is required upfront.
There are a gazillion ways to generate passive income. Investing in stocks, owning rental property, creating your own online biz, and so forth. But it doesn’t mean you need to do it all.
Just pick 1 or 2 that gets you excited.
It’s up to you to decide what works best for your situation. The goal is to create steady passive income to cover your monthly expenses in addition to having a 9-12 month emergency savings fund.
I spent years trying out different ways to generate passive income streams. I had an online blog that sold my courses and e-books. I also listed my rental property on Air BnB, rented out my car, and so forth.
After all the experimentation with different ways to create passive income, I had a very clear idea of what methods I was going to keep working on.
My two favs: Index funds investing + Online blog biz
I picked 2 methods that I actually enjoyed doing. That is investing in index funds and creating an online business. Yes, if you want to also say peace out to the 9-5 rat race, here’s my exact strategy.
No bonds, only stocks? Why yes, after all, I’m Not A Bond Girl! Pun intended.
After coming across countless interviews of JL Collins, author of “The Simple Path to Wealth”, I was able to really understand investing in the stock market. The Simple Path to Wealth by JL Collins changed my life...
1. Index funds: Passive income from dividends and capital gains.
I began to reallocate funds from my savings account to a more diversified asset portfolio. When it comes to the stock market, I have a pretty high risk tolerance.
But being an emotionally sensitive empath, sometimes the market volatility can still get the best of me! So here’s how I minimize risks:
Diversify across different asset classes
Diversify within asset classes
Diversify across markets, countries and currencies
Last but not least, I made sure I diversified across time. I’m talking at least a ten year long term investment strategy. No jumping in and out of the market.
Even the top financial gurus are not able to predict the right time to buy stocks. But if I kept adding to my investments systematically over months and years, I reduced my risk and increased my returns over time.
Specifically, I followed author of “The Simple Path to Wealth” Jim L. Collins investment strategy.
I opened a Vanguard brokerage account and invested in Vanguard Total Stock Market Index Fund Admiral Shares (VTSAX). It is a low cost index fund that hits all the diversification points mentioned above.
Roth IRA? HSA? 401K account? Yes, yes and yes.
Yes, almost 100% of my investment portfolio is invested in VTSAX. And I sleep very well each night. After all, I’m “not a bond girl”!
Interested in taking a deeper look into this strategy? Read “The Simple Path to Wealth” here!
Of if you like me and prefer audiobooks, I bought mine on Amazon to listen to over and over for the investment tips and mainly for the inspiration.
Money is emotional for many people. It’s not easy to stay on track with our financial goals when we allow our emotions to get the best of us.
Sometimes, unexpected emergencies happen too. Check out Jim L. Collins simple but effective strategies on how to set your path to financial freedom like a boss!
2. Online affiliate marketing biz
An online affiliate marketing business can help speed up your journey to financial freedom. Allow me to discuss Exhibit A: Michelle’s Making Sense of Cents blog. Through her strategies, I was able to create passive income on my blog even without millions of views.
After hearing a few podcast interviews of Michelle, I decided to check out her website. After all, what did I have to lose. At that point, I was spinning my wheels at my 9-5 seething at my cubicle day in and day out.
Michelle earns over six figures a month on her blog.
Last month, she made $104,065 to be exact. She makes over $50,000 a month just through affiliate marketing. Quite impressive!
After taking her online course, I started applying different strategies that resonated most with me. I wanted to do what felt most authentic. For instance, I’m not excited about Twitter, so I didn’t use those particular social media strategies.
Soon I was noticing a gradual and consistent increase in my monthly revenue.
Through Michelle’s affiliate marketing course, I learned that I was leaving money a lot of passive income on the table. After all the trial and error over the years, I can with confidence that affiliate marketing is the way to go.
Yes, building a profitable blog is totally doable even without millions of views.
If you are feeling stuck, trust me, I know how you feel. When I thought I tried everything possible under the sun, I thought it was a sign to give up. And due to that, I was still seething at a cubicle.
Change your strategy, change your business, change your life.
Michelle earns over $50,000 a month through affiliate marketing. In her course, she shares exact steps she’s taken to earn over $300,000 from a single blog post. Yeperz, it can really just take one blog post.
The affiliate marketing course also covers great Pinterest and Facebook marketing strategies...after all she does have over 100K followers on Pinterest! Most importantly, she covers the latest affiliate marketing disclosure rules needed on the website, social media and so forth.
Interested in building a profitable blog without millions of views (or selling your soul)?! Be sure to check out Michelle’s affiliate marketing course!