Tools to Grow a Passive Source of Income
August 19, 2021
We live in a generation of individuals who are inclined to doing things the instant way. When we hear we could make fast or easy money, we jump right into the opportunity without much research. This is a rookie mistake that ends up losing hard-earned cash from a scam or a legitimate industry someone just doesn't know that much of yet.
Folks, fancy marketing, or tabloid media might be irresistible but you should know better that nothing comes easy in this world. You have to work hard and smart to be on top of the game. Aside from securing a savings account and an emergency fund, you have to put in the work upfront to start a passive source of income. There is no more space for excuses, especially in this digital era where all the tools are within our reach.
What counts as passive income?
The Internal Revenue Service or IRS lists two kinds of passive activities: (1) trade or business activities in which you don’t materially participate during the year and (2) rental activities, even if you do materially participate in them unless you’re a real estate professional.
In other words, you invest in something upfront---whether it be time, money, skill, or effort---it grows into a business and continues to make cash for you without your active participation.
And yes, it falls under different tax rules compared to an active source of income so make sure to dive into the rulebook first before making any significant decisions.
How to Set up a Passive Source of Income
As we’ve established that starting a passive source of income is no walk in the park, you would have to grind it out to make anything profitable. Once the hard work is done, you just have to wait for the cash to come in while you enjoy a glass of piña colada in Ibiza or fly to Paris with your Louis Vuitton resting on a private jet.
1. Educate yourself
What is happening in the world? What do people need and want? Is the stock market down? Am I interested in photography? Do people look for an apartment in this area?
There are so many industries to explore and it all starts with asking the right question. Identify a problem that you want to solve or delve into an interest you’ve always wanted to do. The Internet is a treasure trove of information and you could explore these hundred ideas in your head until you’ve picked an area of focus. From there, get better at it. Know the market trends and your competitors. Attend seminars and talk to like-minded people. Education is key.
2. Build credibility
Some passive sources of income need you as a credible personality to make some dough. If you’re offering your skills at a price, people should be confident that what they’re paying for is worth the buck. This is why you have to educate yourself first and put in hours to grow an audience that will make the money for you.
3. Tap people who are masters of the craft/skill that you need
You can’t be good at everything. It’s a skill and a blessing to find the right people who could help you develop your idea. If you’re not good at graphics or coding, find someone else who could execute your vision. If you’re not a good salesperson, get a good marketing team. Do what you’re great at and learn to delegate tasks you are not good with or knowledgeable to do.
4. Invest in tools to get you started
Unless you’re born with a golden spoon, you need to find a job first or an investor to get you capital. Starting a passive source of income will need money for you to invest in tools that will help you grow your business idea. As simple as getting a good work chair could be life-changing for you. Below are some tools you could start with to set up your dream.
a) Laptop or desktop. If you have the extra cash, it’s better to invest in a heavy-duty laptop or computer that could last you for years. It may even save you more money in the long run. Remember, it’s not about the brand. Make sure to look for one that has the technical specifications you need. For example, if you are doing graphics, buy a computer that has a good graphics card and will yield you good results.
b) Chair. The long hours might cause you a painful back and neck so getting a quality chair could improve your work performance. Flexispot’s Soutien Ergonomic Chair has a 3D Lumbar support, 135° lounge tilt, and 4D adjustable armrests. Made from Italian-imported chenille and K+R temperature-sensitive fiber, this ergonomic chair promises maximum ventilation. This is comfort at its best.
You may also opt for an ergonomic gaming chair. The Gaming Chair GCO2 is made of high-quality PU leather, an adjustable backrest feature, and an ergonomic design that supports your neck, back, and arms. You will indeed have a comfortable working experience with this quality chair.
c) Dual Monitor Mount
With many markets to keep up with and tasks to juggle, two screens might benefit you. You wouldn’t have to cramp everything in a 16-inch space when you could use two. FlexiSpot offers a dual monitor mount that you can use to secure your two screens to the wall. With its cable management system, you could hide the cable wires and remove extra clutter from your desk. It is also easy to install and adjust.
d) Magnetic Dry Erase Board
Remember everything you need by making a checklist. Having it in full view while you work would help you be organized and finish all your tasks for the day. After all, we are all just human and even though we like to think we’ve mastered multitasking, it’s really not the case all the time.
It’s easy to write and rewrite on the Flexispot Magnetic Dry Erase Board. It’s good for jotting down ideas too that you could just quickly junk by erasing. https://www.flexispot.com/standing-desk-accessories/office-supplies/lockways-magnetic-dry-erase-board-36-x-24-inch
e) Standing Desk Converter
Convert your regular desk into a full-blown workstation without taking any extra desk and floor space. Flexispot offers a range of standing desk converters that will help you be efficient with work. The height is adjustable and the product is sturdy and reliable in carrying your gadget/s.
f) Camera and Lighting
If you plan to offer video lessons, be a vlogger, or flip a product, then you would eventually need to invest in a good camera and lighting equipment. A good quality video could help increase your sales and marketing by a thousandfold.
Passive Sources of Income
With the way markets have grown in the 21st century, you will surely not run out of choices where you can make a profit. Investing in stocks or bonds, using your platform for affiliate marketing, creating an app, renting out a property, selling informative e-books or courses---you name it! You can do it as long as you are ready to commit to the hustle.
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