Succeed in passive income

This blog is focused on helping you excel with passive income. If you are passionate about passive income, cautious about making your choices and dedicated, willing to invest your time, then you will succeed. Passive income is a dream of many and challenging comparable to entrepreneurship or making a good once-in-a-lifetime call on stocks. But it is feasible and in this blog we discuss how you can succeed.

I also start by sharing an inspirational story of Jannese Torres-Rodrigue, who earns self-reportedly USD 7,000 per month with her food blog https://www.delishdlites.com/. Who would have thought that there is money to be made with food blogging, a common past-time of many? Well, Jannese found her way to commercialize her passion and so can you. Although of course, in most cases the ordinary/average passive income earner makes much less.

Types of passive income

The good news is there are many options to passive income, many falling into one of the following areas:

a) Investments, loans, financial instruments, shares in businesses

b) Product based passive income

c) Lending out property based passive income (car, flat, appliances)

The challenge

Passive income is one of the least academically researched business areas, it is tremendously challenging and the boundaries to side income, entrepreneurship, investment and work income are faint. In this blog too, we will also spend some time evaluating the other options you have that will similarly enable you to make financial gains, comparable to those you could make with passive income.

Most realistic passive income options will only enable you to reliably make EUR 30-200 a month next to your typical job's salary. This is because passive income either relies on a previous investment and you essentially earn 0 to (realistically) a maximum of 5% of income, at currently low interest rates in Europe, more likely 0 to 3% and the other product-based passive income strategies often result in a small number of customers unless you invest substantial effort in marketing & sales.

Of course you may also be much more successful in passive income, however please be aware that this is rare. Additionally passive income often fluctuates in total amount, and if you account for what could go wrong, and are properly insured then, deduct taxes and also the true time value of you building it up, it is substantially lower. 

I do not want to discourage you from passive income, but I do want you to be aware that it may not be easy to achieve substantial passive income.

The alternatives

The most common alternatives to passive income are

a) Making savings - save the amount you would otherwise have to earn extra with passive income

b) Earning active income next to your main job - earn extra with your time next to your actual job

c) Earning more in your main job - change employer, change careers, or advance, work extra hours (if compensated)