Want to get started with passive income? Don’t get fooled by all the terrific stories people tell you — here’s the uncomfortable truth about passive income you need to know too!
Passive income is omnipresent. Everyone talks about it. And if you are an active Medium user, you can get the feeling that everyone lives their life to the fullest and enjoys an endless passive income stream.
So if you are still part of the dying species working 9 to 5, you must feel like the dumbest person in the entire universe. Especially since all the posts convey the feeling that creating passive income is easier than easy. What are you waiting for?
Well, with this post, I will tell you the truth. Moreover, I will explain why you should think twice before getting started with passive income. I can tell you, I have seen many people who lately quit their jobs to start their passive income life—with less stress, more money, and endless joy.
But unfortunately, six months later, many went back to corporate life—even more depressive than before.
To get this clear: I’m not trying to convince you that 9 to 5 is the good guy and passive income is the bad one. Not at all! I love passive income. It’s a fantastic concept. However, there are things you have to take into account—that’s all.
#1 Creating passive income takes time
Start a YouTube channel! Start with blogging! Become an affiliate! That all sounds so easy. However, until you really start to make money, it takes one thing: time!
No one will watch your YouTube videos in the beginning, and only a few will read your blogs. Indeed, there are a few ways to generate income streams faster (Medium is one of them), but the story stays the same: It’ll take several months or even years until you make enough to enjoy life to the fullest.
Therefore, please don’t start with a wrong perception!
#2 You have to put in the work! Lots of work!
To get that straight: Everyone that tells you passive income doesn’t require work is doing exactly one thing: Lying!
All those funny posts that tell you to “simply” write a book, record an online course, or start dropshipping seem to conceal one thing: The work you have to put in.
Actually, the idea of passive income is to create, to build something that enables you to earn money from it. But first, you have to build. And believe it’s hard work.
You must learn new skills, use new tools, and be more creative and dedicated. So please bear in mind: Starting with passive income is challenging and requires work!
#3 You need self-discipline
Self-discipline is one of the most essential ingredients when starting a passive income. Remember, no one tells you to get things done. No one sets the deadlines. You are the one. You have to motivate yourself — again and again, every day.
Especially when you work from home, the amount and types of distractions are endless. And quite often, procrastination or simply “I can do this tomorrow” becomes the biggest enemy of your passive income plan.
Therefore, before starting your journey, you have to ask yourself if you are (or can become) disciplined enough. Of course, self-discipline is not everyone’s baby — and that’s ok. You just have to be honest with yourself.
#4 You need skills
If you read articles about passive income, you must get the impression that skills don’t matter. Hey, come on, everyone can create an online course, become a YouTube star, or do affiliate marketing.
Again, this is only half of the truth. Doing videos, writing posts, or creating online courses need skills. I’m not saying that you can’t teach yourself the skills—but again, this will take time.
And to be very honest: Not everyone can do everything. For example, some people are simply not good at writing—regardless of how much they train. Others can’t speak in front of a camera or sell soaps.
At this point, I’m starting to repeat myself when saying that you have to be very frank when starting with a passive income idea. Is it really something you’re good at, or can you get to a certain professional level—or not?
#5 Without passion, you will fail!
Finally, the last but yet so crucial uncomfortable truth: If you are not passionate about what you do, you won’t succeed.
If you just start with a blog because you want to earn money with it, but you’re not passionate about it, exactly three things will happen: You won’t put be patient, you won’t put in the work, and you won’t be self-disciplined enough to do this until you earn money with it. Period.
Passion, from my point of view, is the ultimate ingredient. Without passion, everything will fail. However, if you find a passive income stream you’re really passionate about, the four aspects mentioned before won’t be any problem for you.
Therefore, my ultimate advice: Find something you are passionate about and don’t choose something because it looks cool, others are doing it, or it seems you can make a quick buck with it—it will never work.