Having a stream or multiple streams of passive income is a dream of a lot of people. But how can passive income make you rich in the long run?
Passive income can make you rich by giving you the freedom to pursue other income streams while still building your wealth outside of an hourly wage. The way passive income really works is through delayed income. You buy or build a cash-flowing asset and automate it. Automating the cash flow gives you time to pursue other income streams or passions and multiply your hourly wage.
The Passive Income Snowball
Imagine sitting on a beach, sipping on a margarita while the sun beats down warming your skin. At the same time, you know that through your hard work and dedication you are being paid and your net worth is increasing even though relaxation is taking over.
The Passive Income Snowball is income that requires little to no work (passive) and provides cash flow that can be used to create additional income streams. These additional income streams can then be used to create even more income streams and the snowball effect grows exponentially.
A dream many people have, that can be manifested with the help of passive income. Passive income can be cultivated into a lifestyle accelerating you to places you only dream of.
But, how can passive income make you rich and why are so many people trying to create it?
Truthfully, saving $3 on a latte helps, but, it will take years and a lot of discipline to achieve big wealth. This isn’t to say that it’s not possible but, that there are more efficient ways. Passive income is by far the most lucrative.
Harnessing the power of passive income is about creating one stream of income, automating it so it can earn you money in the background, and starting another stream of income.
After the second stream of income is established you can work on a third, fourth, etc. Some people have created an entire web of income streams all pouring wealth into their lives. This compound effect of multiple incomes on top of each other accelerates creating the Passive Income Snowball.
Passive income can make you rich by giving you two distinct opportunities not presented to employees.
- Multiplying Your Hourly Wage
- Multiple Streams Of Income
Multiplying Your Hourly Wage
It may seem like a silly thing to believe you can multiply your hourly wage but it is entirely possible. If you go to work and get paid $20 an hour what would that same amount of pay be in 10 years if it was invested?
Assuming you received the average return of about 8% per year you would have $40. This effectively doubled your hourly wage. Best of all, if it’s invested properly it did that growth passively!
But let’s look at another scenario, what about if you used Bluehost, made a blog, wrote some articles, and earned ad revenue and affiliate commissions.
Imagine if you spent 3 hours writing and making a blog post, but you made $6 in a month from that post. The hourly wage is only $3 an hour right?
Not quite, see, you write the article and make $6 that month, then $6 the next month and the next, etc. After a year you’ve made $72! The next year you make $72 and the next and the next.
All of a sudden you spending 3 hours building a passive income source starts to pay a lot more than you might have thought. Expand that income source, now you have 100 posts on a blog!
You make $2500 a month or more from all that work every month, for potentially years! That’s the power of passive income. Go to your day job and make money while your passive income is making you more money in the background.
What about stocks?
You go to work get your paycheck and buy a few stocks. This also multiplies your hourly wage. You will never be able to go back in time and work that hour again so multiplying your spent time through the future is your only option.
Buying income streams such as stocks, bonds, Real Estate, or other investments is how you can turn $20 per hour into $100 per hour over time!
The possibilities are endless and only bound by your imagination!
To get started investing in stocks you NEED to get The Beginners Guide To Analyzing Financial Statements, you will get practical information that will help you determine WHAT and WHEN to invest in a company. The numbers matter when investing!
Multiple Streams Of Income
Next step; Build another income source!
There’s no better way to escape the rat race than creating multiple income streams! Most people only have one income from their 9-5. The few that create multiple incomes are the ones that have amazing houses and seem to always be able to do exciting things!
After all, this is Money’s The Game, Lifestyle’s The Pursuit!
It’s not just about having a great house or expensive car, it’s about security as well. job security is only valid as long as you have a job and the vast majority of people believe their job is safe when it might not be.
How many people would be in a bad spot if they lost their job today? A lot! So protect yourself by having multiple sources of income!
If you lose one income you will have others to take its place.
Perhaps you Write a book!
Then you upload your book onto a platform like Gumroad and sell it on Twitter and other traffic sources. Some people make $100,000 a month doing this! You can get a step by step guide on Gumroad right here at Twitter Cash Flow!
Create an asset, sell it, and acquire some affiliates who can sell your book, course, or lecture FOR YOU and pay them a commission.
Scale your marketing and let your affiliates automate the selling process for you. It takes some work to build and create a viable asset that you can leverage and sell but the end payout can be enormous especially if you are willing to put in the time to build the passive income stream.
Creating multiple income streams is one of the best ways to increase your wealth! After all, saving a few dollars here and there won’t skyrocket your net worth nearly as fast! But be forewarned, Passive income is rarely passive in the beginning.
Building multiple income streams can be hard work. It can take years to finally make money from all of your efforts. This can be especially true with digital products or stores. Unless you have prior knowledge of marketing your products or services, making an online business has a learning curve that entices a lot of people to quit.
This leaves you an opportunity though! With so many people trying and eventually giving up all you need to do is truly dedicate yourself to learning how and what to do to succeed!
If you can create one income stream making $10 you can multiply that income stream over and over to make as much money as you want. Think about if you made a product and it generated $10 a month or $120 a year.
Over time that will add up to BIG dollars but what about if you created a second? Now you have $240 coming in, and a third making you $360!
Create something of value, sell it, or use it to make money for your time and repeat. That’s how the rich make money, the rich buy or create assets that generate income and repeatedly do so to increase their total net worth over and over.
Ways to Automate your Income Streams
Every income stream can be automated! If you go through Twitter Cash Flow you get a step by step guide on how to use Twitter to build your side income and take advantage of affiliates that want to sell your product FOR YOU!
But even storefront businesses can be automated. It’s more commonly referred to as an employee!
This is essentially what is happening for the business owner. He/she hires an employee, trains them, and has them complete tasks to make the business money.
Then the employer compensates the employee and has now made money without having to do the work. The employee did the work and the owner gets paid for someone else’s labor.
Take the store one step further and hire a manager who takes care of all the administration and daily activities and now you have a passive income source that you only need to check up on and make sure it’s running efficiently!
Imagination will be the driver to you creating passive income from anything!
Where to start?
If you are looking for something you can start on the side and build over time without having to dedicate 35 hours a week to you can always start a blog or a Print On Demand Store with Zazzle.
The Beginners Zazzle Course walks you through exactly how to get started and make your first product!
It can’t get any easier! A Blog is always a good choice as well! I run this blog with Bluehost and they have been Awesome! Every problem has been resolved fast and easily with their help (I caused these problems)
You sign up on Bluehost, design your site and write about what you are interested in. Throw in some Pinterest marketing, Twitter, or Facebook and you can start building a community!
There are so many options to start making passive income all you have to do is begin!
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I haven’t, sounds interesting I’ll check it out!