Passive Income. An Incredibly Easy Method That Works For All
Updated: Sep 21, 2021
Are you tired of living paycheck to paycheck? Had enough of barely getting by? Do you wish that you had money left after the bills were paid? Do you often think there's gotta be more to life than this?
Well you're absolutely right, there is more to life. If you're ready to escape the rat race for good and never worry about paying bills again, I'm gonna share with you how to get started on the path to financial independence.
There are two parts when it comes to taking the first steps toward achieving financial independence. The first, is your financial mindset, you have to change the way you think and feel about about money. Instead of getting a job and working hard for your paycheck (essentially becoming a slave to your job), you need to get your money working hard for you.
According to Robert Kiyosaki who is in my opinion the smartest man I've ever heard speak, and author of the best selling book Rich Dad, Poor Dad, says one of the most important first steps in becoming financially independent is to change your financial mindset. He tells the story of his father and his best friends father who had completely opposite financial mindsets as he was growing up. I can't recommend this book enough. This book will change the way you think about finances and will open your eyes to the possibilities that are waiting. Listen to Rich Dad, Poor Dad here on Audible which offers a free trial when you sign up.
Now, once you take the initial step, you will begin to understand more about how money works, which is something most of us never fully grasp. The next step is all about passive income. What exactly is passive income? Have you ever heard someone say they make money in their sleep? Sounds like a great plan right? Who doesn't want to make money while they sleep? Well, with passive income, you make money while you sleep, while you're awake, while you're on vacation, you can literally make money from any where because its automatic. Passive income is money you earn without actively working for it. It is one of 3 types of income needed to achieve financial independence. The others are portfolio income (investments) and active income, such as your job, which is a direct exchange of your skills/time for money. Active income is you working hard for your money, and passive income is your money working hard for you. Robert Kiyosaki states "The moment you make passive income and portfolio income part of your life, your life will change. Those words will become flesh," and that is exactly what happens. The more your financial mindset begins to change and grow, more possibilities will become available to you, and your interests will shift.
However, passive income is not a get rich quick plan. It is actually the opposite. Most passive income streams take an enormous amount of time and effort in the beginning. Getting a passive income stream started requires a short term sacrifice in order to create a long term payout.
Some passive income streams can take years to build with very little money being made at all in the beginning. If you have the determination, and you're willing to put in the time and effort in the short term, the long term benefits will eventually pay off a big way. If done correctly, it will continue to pay over and over again for the rest of your life with less and less effort required by you. Some examples of passive income streams are rental property income, income from investments, or a digital product that once it is created can be downloaded over and over with little to no effort on your part.
Now you know what passive income is, and you know that is a vital component to achieve financial independence, but why? As Warren Buffet always said, "if you don't find a way to make money while you sleep, you will work until you die." Bottom line, there is just not enough time in the day or in ones life to make enough money to live comfortably without utilizing the time you are sleeping or resting.
That brings us to the question, what is the one thing in this world more valuable than money itself? The answer to that question is time. Time is more valuable than money because it is the one thing in this world that can not be bought. Time levels the playing field so to speak because no one can get more of it. We all get 24 hours in a day, no more no less. Unlike money, we can't tuck minutes away on a clock, we can't invest time we didn't use one day on something else the next day. Once the time goes by it can never be brought back, and time never stands still.
This is what makes time more valuable than money and what makes passive income so important. Passive income allows us to break the connection between earning money and our time, so that our time is no longer traded in order to earn money. This gives us our time back in a way or gives us more control over our time. Once we begin to earn passive income we no longer need to give our time away to someone else in exchange for a paycheck. This is probably the most important piece of information you will gain from this post so I will say it again. Passive income allows you to earn money without giving your time away to anyone.
Each passive income stream we create allows us to earn a steady stream of income while spending our time on the things we enjoy doing, actually enjoying life. This my friends is the secret to financial independence. Which brings us back to the beginning of this post and why changing your mindset has to be the first step. If you don't change your financial mindset you wont be able to detach your ability to earn from your time spent, which then makes this journey a very difficult if not impossible process.
So if you're ready to start on your path to financial independence, and work towards leaving the 9-5 behind for good, then you're ready to start creating your first passive income stream. I'm going to share with you a simple way almost anyone can get started with passive income today with little to no up front costs. Just about anyone can start earning from this type of passive income stream right away. Now, depending on your situation, the amount you can earn will vary, but a start is a start and once you start earning income from your very first passive income stream, that will likely be all it takes for you to continue to find other ways to create passive income. Right now it's all about taking action.
When creating this particular stream of passive income we are going to be using space. This is space you already have to start, further down the path you could invest in space, but to start use the space you have. It can be space in your house, or office, your front or back yard, even your drive way. Whether you rent or own your home, your extra space is going to become your new income.
Some of you are probably thinking you don't have enough extra space to rent out, but think again. Get creative with your space There are quite a few new startup companies that are cashing in on the peer to peer sharing economy that will pay you to rent your extra space. This depending on the company, can be an entire house, a room, a driveway, shed or garage, all the way to the extra space under your dining room table and everything in between. So, no space is too small, and it doesn't matter if you rent or own your home. Just about anyone can start earning by signing up with the company of your choice.
One of the newest start-ups to hit the scene is called Neighbor, and its free to sign up to become a host. You decide when and how renters use your space and they will take care of everything else. With neighbor you can rent a portion of your space or the entire space. You can rent any space from a parking space, to a shed, entire house, or even just the space under your loft bed or dining room table. The average host makes about $2,000 a year with the potential to make up to $20,000 if you have multiple spaces for rent. Payments will be deposited in your account each month.
Sign up at neighbor or download their mobile app here. While this is a newcomer to the scene, in my opinion this company is the one to go with because they offer the widest range of options as far as what space you can rent and they make it easy for everyone.
If you are only looking to rent your parking spot then the company spacer is the best option for you as they focus on parking spots only. With spacer you can make up to$450.00 a month or $5,400 a year. If you check out their website, you can actually get an instant estimate on what your parking spot could be worth before you even sign up. Spacer is free to sign up with as well, and you decide when your spot can be used and how much you want to be paid. All you need to do is set a price and list your spot. Pretty simple if you ask me.
Have a bigger space to rent or something unique? Peerspace is a great choice as well. With peerspace you can rent things like galleries, rooftops, kitchens, lofts, workspaces, dance studios, your backyard and more. They are always on the lookout for new creative spaces. Most spaces are rented by the hour and the amount you can make varies depending on your space. You could easily bring in $5,000 a month or more with very little up front effort required on your part.
One more great option to those of you who have backyard pools is swimply. This company is considered the air bnb of swimming pools and according their website, hosts on average make anywhere from 5,000 to $10,000 a month! Pools are rented by the hour and most hosts charge between $35 and $50 an hour with swimply taking a 15% cut. Listing on swimply is free and it takes less than 5 minutes.
These are just a few options for you to get started making passive income today. Almost anyone can find some kind of space they are not using, so turn that unused space into your first stream of passive income. Once you have your first passive income stream going, trust me you'll want to create more. The ability to make money while you sleep is out there, you just have to find your money maker, find what works for you. Remember, this is only one way of making passive income, just to get you started. Be creative and always be on the lookout for new ways to build passive income streams. The more streams you have, the more money you have coming in, and the more time you have to do the things that matter to you, and actually enjoy life.