Ask anyone if they want to make more money and you’ll struggle to find someone who says no. After all, when Bloggers claim that they make $60,000 per month in passive income, why wouldn’t you want a piece of the action? According to Lending Tree, the nation owes $1 trillion more household debt now than in the midst of the financial crisis back in 2008. And, with research finding that the state of an individual’s finances can impact their health, is the answer to these troubles really as simple as making a passive income?
Putting the hours in
Despite common misconception, no one makes a passive income by doing nothing. Undoubtedly, if there was such a way, everyone would be doing it. That’s not to say that you can’t make a passive income from doing very little in the long run, though. Working hard to create an e-course in your area of expertise to sell at a later date will make you cash long after you’ve finished editing the audio. While, your website readers will continue to make you money by clicking on affiliate links long after you’ve signed up to affiliate businesses and placed their ads on your site.
Finding what works for you
It’s worth bearing in mind that what works for one individual might not work for you. If you spend hours on your laptop each day then making money from home is as easy as playing videos and ads in a spare browser. However, you may be better off renting out your spare room to a student or commuter who works away from home during the week if you’re not tech savvy. To truly succeed, it’s vital that you enjoy what you do, even if your ultimate end goal is to let your side hustle run itself while you reap the benefits. According to Gallup, 51% of Americans aren’t engaged at work, meaning they do the bare minimum in the workplace. But when you’re in control, you need to give it your all to maximize your earning potential.
Don’t forget your taxes
The IRS states that ‘a passive activity is any rental activity or any business in which the taxpayer does not materially participate.’ Therefore, the passive income you make from affiliate marketing and similar activities must be declared and taxed. This means you’ll need to set time aside to fill in a tax form. Thankfully, the government have just shrunk the IRS 1040 which three quarters of taxpayers use to just one page, so declaring your passive income earnings is now quicker than ever.
Almost anyone can make a passive income to up their earnings. Although, it’s important to note that it’s not as simple as deciding you want to do so to see your bank balance increase. At the beginning of your venture, hard work is essential, as well as finding your niche. Once you’ve put the hours in you can sit back and enjoy making cash while you sleep, but make sure you don’t forget to fill in your taxes.