April 25, 2012

Passive Income Aspirations

Busker in Ignoreland Passive income is something that I desire but something that I do not have.  I’ve always had intentions and back-of-the-mind plans to create passive income.  I have just yet been able to carry through with any of my well intentions.  I know the importance of having at least some passive income in order to accomplish financial freedom.  I’ve read the books and the blogs.  I’ve listened to podcasts and radio shows.  I’m well informed on the things I need to do and why and how I should do them.  I just haven’t done them yet.  I seem to be stuck in this thing they call life.  Work, sleep, eat, poop then repeat.  It’s about time I take some of that useful information and put it to use.

What Is Passive Income?

Passive income. Income (such as investment income) that does not come from active participation in a business.

Smart Passive Income
Not only is Smart Passive Income the title of the heading for this section, it is also the title of a very popular blog by Pat Flynn.  Anybody who knows anything about the blogosphere knows about Pat Flynn.  He stumbled into an online income stream by accident and is now making a killing with all of his different ventures.  His most popular is the Smart Passive Income blog, where he teaches others how to do exactly what he is doing.

I had heard his name mentioned time and time again when I first got serious about blogging, but never really took the time to thoroughly read through his site.  I recently stumbled upon his podcast though.  If you know anything about me, you know that I drive a truck for a living.  All of my drive time is a perfect opportunity for me to educate myself by listening to podcasts, audiobooks and talk radio.  I found the Smart Passive Income Podcast last week, and I’ve already listened to the first 19 episodes.  As of this writing, there are 37 episodes available.  I plan to finish listening to each and every one by the middle of next week.

The information provided by Pat Flynn via his site and his podcast is incredibly valuable.  His story and the stories of some of his guests are really encouraging and are inspiring me to get more serious about creating a passive income for myself.

My Not So Passive Minimal Blog Income
There are a lot of people who make a lot of money with their blogs.  I am not one of them.  Yet.  I’ve been seriously working on this blog for 8 months now, and have yet to see a sizeable income.  I am optimistic though, as I hear about the success of those who are able to stick it out for the long haul.

Whether or not blog income is passive is debatable.  Pat Flynn’s opinion is that it is.  At the same time though, he admits that running a blog is a ton of work.  There are two ways to look at it.  Passive income can be accomplished by income being generated by older blog posts.  Yes, this part is passive.  If people are finding your older blog posts via Google, or something like that, they still see your current ads in the sidebar.  They might click on an affiliate link in an old post and make a purchase.  These are two ways that passive income can be generated by a blog.  I suppose if you abandoned the blog and just stopped publishing on it, but left it out there, this could be totally passive blog income.

In many cases though, blog income is more active.  You need to be writing and publishing regularly.  You need to constantly promote your blog and interact with others within your niche.  You need to work with advertisers or affiliates in order to generate income via your blog.  All of this is a lot of work and takes a lot of time.  This would be considered and active income, but it could lead to some passive income.

Currently, my blog is active.  There isn’t much passiveness about it.  I’m fine with it not making very much income at this point, because I still consider myself new.  I still look at it as kind of a hobby, and I enjoy it very much.  At the same time though, I do want to make an income from it.  Not just to be rewarded for all the time that I’ve put into it, but because I see and read about everybody else who is able to make money from their blogs.  I want a little piece of that pie.  You know what I mean?  I like pie!

Other Passive Income Sources On My Radar
There is one type of passive income that I am actively working to create.  That is the investment return income that is being created within my retirement accounts.  All of this money is currently invested in good growth stock mutual funds.  This is not typically something that is considered passive income.  I don’t see why not though.  It is there.  It is making money, and I am doing nothing more than adding more money to the pot on a monthly basis.  Even though I am actively working to be able to add that money to the pot, the money that is being created within is a passive form of income.

Owning rental real estate is something that I have always had a desire to do.  I did own a duplex when I was in college.  I rented out the upstairs and lived in the downstairs while attending school.  I sold that property soon after dropping out of college because it was five hours away from my hometown.  I did the long-distance landlord thing for a few months, and that is just not fun.  I’ve always had in the back of my mind that I want to own and manage somewhere between 8 and 12 rental properties at some point in time.  When I am able to accomplish this, the income from those properties should be more than enough to support me.  Especially if I don’t have debt on any of the properties.  I could get into all of the excuses for why I don’t currently own any rentals, but I won’t.  Instead, just leave it as that is a long term goal of mine.

One other passive income source that currently hit my radar is by building niche websites.  Being in the personal finance blogosphere, I’ve read about other bloggers who have dabbled in this arena.  Pay Flynn talks quite a bit about his niche sites.  I have some great ideas and am really interested in learning how to build a successful niche site.  I am currently in the process of learning all the fine details of exactly how to do this the right way.  It will just be a matter of time and finding enough of it to actually execute my plan.

Executing Ideas
That is just it.  Executing.  By executing, I don’t mean killing ideas.  I mean actually implementing and carrying through.  This is the challenge for most people.  Everybody has great business, income or product ideas.  Very few people actually follow through and do something with their ideas.  I am no different than the masses.  I find every excuse in the book to not carry through with my ideas and I remain stuck in my work, sleep, eat, poop life.  It’s about time I find the motivation to move forward.  It’s time to create the time I say I don’t have.  It’s time to start creating a passive income in order to obtain financial freedom!

Readers:  I would love to hear about your dreams, goals or aspirations to create a passive income.  What have you done to do so, or what do you wish to do in the future?


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