Truth About Making Passive Income

One of the biggest myths I see circulating on the internet, mostly among those who have just started working online, is any money you make on the internet is passive income. These people tend to believe posting on paid to post forums, working on micro job sites or get paid to sites, working on freelancing sites are passive income sources. Well, passive income means the income you build without any on going work, if you have to work to make money that is active income and not passive income. You can earn as a freelancer only when you work on assignments, therefore, this is not passive income. A lot of people also believe activities like blogging and vlogging are also passive income sources. Well, these are not entirely passive income sources, but rather semi-passive income. You will have to work hard and work every day to make money through blogging and vlogging.

Is It Easy to Create Passive Income Through Blogging

If you search online for “best passive income method” you will see a lot of people suggest blogging as one of the best passive income sources. Is blogging actually a good passive income method? How easy is it to build passive income through blogging?

Unlike other people, who suggest blogging as a good passive income source by because they saw other people suggesting it, I am sharing my opinion based on my own personal experience.

First of all, blogging is not completely passive income. You will have to regularly work on your blogs. Secondly, blogging requires multiple skills.

You can earn through your blog in multiple ways, however, no matter what methods you are using, you need a lot of traffic on your blog. You can build traffic only through SEO and digital marketing. Not an average Joe, but a SEO pro and expert marketer.

Blogging starts with creating high quality content, and you need to be exceptionally talented writer.

Is It Easy to Create Passive Income Through Youtube

Youtube will become a passive income source only when your videos are able to bring a lot of traffic, a lot of traffic means your videos are able to receive hundreds of thousands views every day.

How easy it is to bring hundreds of thousands views every day?

First of all, you need hundreds of thousands subscribers. Secondly, you need to rank your videos well on youtube search, as well as google search. Thirdly, you need to publish a lot of videos.

You will have to work really hard to build subscribers, rank on searches and publish a lot of videos. You will have to work on your videos and do SEO and digital marketing every day to bring views. Therefore youtube is not something you start today and go back to sleep and then start collecting money. You need to give a lot of time to make money on youtube.

The only thing that makes youtube better than other passive income sources because it is free and you have a potential to make a lot of money.

Ways to Create Passive Income

It is easy to make active income, you work for a month and you receive a salary at the end of the month, or you work on a contract and you receive payment after the job is done. It is also easy to diversify your active income. For example, you can do side hustles even when you have a regular job. For example, you can go to your workplace and work 9-5, and then in your spare time, you can drive for uber and make additional income. However, generating passive income is not very easy. You will have to do three things, one, invest in the market, build a profitable business, or create a product that constantly sells. All of these things are very difficult for an average Joe. Investment requires a lot of money, and investment can not be 100 percent safe, creating a profitable business is also very difficult, you need to invest as well as work hard.

Investment is certainly the best way to build passive income. When you invest, you do not have to work hard to make your investment make money for you. When you invest, other people (the individuals related to the companies you have invested in) will work hard to make money for you. However, investment requires a substantial amount of money, and then there is also a market risk, your investment can go wrong or you might make a loss due to the market conditions. You can also build passive income by creating your own business. However, creating your own business requires investment as well as hard work. Interestingly, you might be able to make more money when you create your business compared to making an investment in someone else business. The third method of building passive income is by creating a product or services that continues to sell and generates profit for you.

Building a Sustainable Passive Income

Investing in stock market can also be a good way to build passive income, however, stock market is risky investment and you are prone to market risks. Trust me you cannot easily earn passive income through blogging. You need to be extremely talented writer, and SEO and digital marketing expert to earn from blog. You need to look for methods that are sustainable. When passive income is sustainable, you will be making money on a regular basis. Unless and until the money from the work that does not require any ongoing work does not come to you on a regular basis it cannot be termed sustainable passive income. Let's say you invested $100 in Bitcoin and in a few months, your asset became $200. This is a passive income as you did not have to work to make your investment grow and to receive $100 profits along with a $100 investment. However, this is not a sustainable passive income because it is not a recurring income. However, if you invest in stocks and receive dividends every 4 months or every year, all the while your principal amounts are still in the market, this is a passive income. Investment in the right market can bring you sustainable passive income. Creating your own product can also bring sustainable passive income.

Passive income is not something that starts raining money out of nowhere. You will have to work really hard to build your passive income source. Every month, I make $100-$200 passive income from my blog. In order to make this amount from my blog, I have worked on my blog for years, and published over 150 articles. I also make passive income from my stock investment. In order to build passive income through investment, I have worked hard to save money, and then invest my savings in the stock market to generate passive income. I also earn passive income by selling print-on-demand products, I have worked for many months, almost for a year to be able to generate passive income by selling products. If you are lazy, you can't build passive income. Passive income is possible only if you are hard working.

Importance of Having Passive Income

You need passive income to build stable finance as you can build income through multiple channels. The best thing about passive income is you can continue working on your active income and you still make money from your passive income without using a lot of effort and spending a lot of time. However, creating passive income is not very easy. You can create passive income through multiple methods, the most common methods are an investment and creating a product or service. Investment needs a lot of money and creating a product and services require skills and knowledge. You can invest in multiple assets to minimize your investment risks, and depending on your skills and knowledge you can create different kinds of products and services. You can create a blog or vlog, a digital course, web apps, membership sites, ebooks, etc. In order to build stable passive income from your products, you also need SEO skills.

Having passive income is quite necessary in your life. Passive income ensures that you will have money when your active income source is lost. For example, you have a job and some stocks, you will still have dividends earnings even when you lose your job. Interestingly, not many people are able to build passive income and they end up living solely on active income. The easiest way to build passive income is by investing, you can invest in stocks, real estate, etc. Your investment will give you returns on regular intervals. However, if you do not have money to invest, y will not be able to use these methods. In that case, you will have to work hard to create product or business so that you will be able to build passive income. However, you will have to spend years before your business and product start generating passive income for you.