The Truth Behind Making Passive Income


Hello Reader,

Everyone loves to learn how to make money passively, right?

Nothing beats having money drop into your bank account while you do nothing.

What’s more, in today’s world, your salary from your job is not catching up with the rising cost of living.

Many people want to make more money without spending additional time and energy they don’t have.

Unfortunately, many people never really make passive income because of the misplaced idea of what passive income is.

Hard truth: Passive income isn’t really passive.

I hate to break it to you, but most passive income ideas aren’t truly passive:

  • Investing in the stock market requires you to understand how the market works.
  • Collecting rental income requires you to have a property to rent in the first place.
  • Making money online or through royalties requires you to first create the product.

As you can see, they all require some active participation from you.

Don’t believe me? Check out this article from Investopedia that goes into the technical definition of passive income and 24 ideas to make passive income.

The only true passive income is through inheritance or living off generational wealth. But this is rare for most people.

If there’s no such thing as passive income, what should you do?

Make passion income instead.

Passion income is what I call doing work you love that comes easily to you and makes the money you want and need.

Unlike a job you hate where doing the work is hard and unfulfilling, making passion income is money you make doing work you love that comes easily to you. It probably won’t feel like work to you. It’s inspirational and you gladly and obsessively want to do it.

Here’s how you can start.

Step 1: Pick a passion income activity that uses your talents, skills, and experience.

People usually prefer doing what comes easily to them. Naturally, you get better and better at what you enjoy doing because you tend to do more of it. Regular practice makes you even better at it. It’s a reinforcing cycle.

It’s important to pick something you enjoy doing because making the money you want from your passion income activity will take time.

For example, writing, training, and coaching come easily to me. I enjoy it. It's what I do in my full-time job too.

So my passion income activity is writing on LinkedIn, making guides like this one, freelancing as a trainer, and conducting free workshops.

Step 2: Consider the time you have to work on your passion income activity.

A lot of people underestimate the time it takes to build your passion income up to the point you can depend on it fully for all your financial needs.

When they don’t make the money they want in the timeframe they want, they give up.

Sadly, this happens because they aren't prepared for how much time it’s truly going to take to make the kind of money they want.

You have to consider the time you have available to work on making passion income. Remember nothing is truly 100% passive, especially in the beginning.

As working moms, our family and work need our time and attention. Don’t be too hard on yourself if you can’t do it all. The key is to try your best to do what you can in the time you have and build from there.

Step 3: Manage your expectations and have a backup plan.

Since it will take time to grow your passion income activity, ease up on the pressure to make money from it right from the get-go.

This also means you’ll need a backup plan for your ongoing bills.

I made the mistake of going all in for my passion income activity in 2014 by quitting my full-time job to start a cafe with my husband.

It didn’t take off as expected and instead left us with a 6-figure business debt.

With no income and bills to pay, it was the most stressful time of my life.

This is why I don’t recommend people do that, especially when you have a family to support.

Instead, get a job that’s easy to do because it leverages your strengths and talents. This frees up mental and physical energy so you can work on your passion income activity concurrently.

Ideally, do a job that also helps you build up your passion income activity on the side so they reinforce each other so you can kill two birds with one stone.

Do your best to excel in your job so you have the bargaining power to negotiate for the highest possible salary you can get.

Even if you don’t get the salary you want, ask for support and sponsorships to continuously upgrade your skills and invest in yourself.

You are your own highest return on investment.

Conclusion

Passive income isn't truly passive and requires time, money, and effort from you.

Many people either find it too difficult to start or give up when they realize it takes more work than they were prepared for.

You can do this with more ease and joy as long as you:

  • Pick an activity that leverages your interests, natural talents, skills, and experience so you can stick with it.
  • Consider the time you have available to work on your passion income activity so you can do it with ease and joy.
  • Manage your expectations and have a backup plan so you don't get financially stressed.

Finally, remember to appreciate what you already have and celebrate your wins along the way, no matter how big or small.

Although it takes some work, making passion income isn’t rocket science or complicated.

You can certainly do it.

Reply and let me know what passion income activity you picked or are working on!

Talk to you again next week.

Sharon

113 Cherry St #92768, Seattle, WA 98104-2205
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Sharon Singh Sidhu

Ready to rewrite your career story? Get practical strategies for real-world success to thrive in your career while building your dream.

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