How to start moving from active to passive income

My initial plan is to go from only active and to include some passive income sources.  I don’t expect to achieve 100% passive income – that’s a losing proposition.
Feel free to prove me wrong on that!
No my initial goal is to slowly increase the amount of monthly passive income to take care of some of my bills.  In my first month I earned enough for a cup of coffee, then enough to cover the monthly cable bill, and now I earn enough to almost cover my car’s monthly fuel bills.  My current goal is to achieve $1k in truly passive income.  Passive income is achieved when you aren’t directly trading your time for money.  This is pretty much a foreign concept for current employees like me – I started out with 100% active income.  You likely are 100% active income too.  Every single dollar I earned came directly from time that I spent working for my employer.

You can purchase passive income.

My initial passive income is coming from AdSense nice websites that I bought.  Nobody said that I had to do it all alone and build everything from scratch.  In fact, I have the advantage of a monthly income with some spending money left over after my bills are paid.  Instead of spending that money on dining out, clothes, big TVs, fancy rims,  or other things that do nothing for my future, I chose to spend some money on website properties that will pay for themselves and then fund my lifestyle.  The going rate for quality AdSense websites is about 20x to 25x the average monthly revenue.  This means that the cost of purchasing a website like this would be recovered within 2 years if everything stays the same.  That’s a 50% return!  Much better than at your bank.
However I certainly don’t recommend investing your lifesavings buying websites like this.  No I suggest you just divert money that you would normally spend on lifestyle items such as:

• New clothes
• Fancy dinners
• Nights out at the bar
• Rims, new stereo, or other accessories for your car
• Eating out for lunch at work

Live like nobody else will – in order to live like nobody else can!

However, I do NOT suggest you just save this money for 40 years and hope that it funds your retirement.  I don’t subscribe to that finishing rich latte factor BS.  If you are avoiding a coffee at Starbucks because you want to save the money for your retirement, you are on the wrong path.  You are on a path that will take you nowhere but being the richest guy or gal in the nursing home.  I will go on and on about about enjoying life now instead of following the standard ‘Slowlane’ path as dictated by society.  I will refer to the slowlane and fastlane a lot on this blog, and I am borrowing that directly from MJ Demarco and his book The Millionaire Fastlane.  This is the second book that I recommend (the first is the 4-Hour Work Week).  Your homework this week is to buy, beg, borrow, or steal a copy of this book.  Your mind will open and there will be revelations – I promise!!

Next I do plan to reinvest the profits from my AdSense websites into purchasing or building more of them.  Now that’s my idea of compounding interest and dollar cost averaging!

Simply aim for less active

As I said above, 100% passive income is difficult to achieve.  It’s also not necessarily something that I require to be happy.  I am interested in designing & selling products, building a business, and engaging with customers.  I do not have to eliminate all of those things to enjoy my life.  Nope, just as long as I am doing it for myself & for my own business, as well as from a location of my choosing, then I’m a happy camper.  Also putting 100% of my income into other’s hands is a dangerous idea.  A change to AdSense rules could change that part of my income – in an instant.

Also, I am not the kind of guy who can just lay on the beach for the rest of my life.  Actually I can’t lay there for more than 30 minutes without reading a book or crashing some waves.  No, my goal is to earn enough passive income to cover my base expenses, and then put all of my efforts into building that amazing business – either online or offline.

Diversify your income streams

My AdSense niche sites are the file baked into the cake, and I’m the prisoner.  They are getting me started and helping me to escape my employee prison, but that is not my only escape plan.  My plans include more AdSense and affiliate site income, a remote work or consulting agreement from my current employer (hopefully), virtual consulting of other companies using my current expertise, selling virtual and physical products online, and a cash runway that I am trying to build up from my current job.  Oh and hopefully I get some affiliate commission love from visitors to my blog here where I share my journey.  But I can’t and shouldn’t attack everything all at once.  So I am currently focusing on growing my current AdSense sites and building some new ones too. Leverage what’s working.  Soon, rolling affiliate products into my AdSense niche sites is probably the first diversifying move that I will make.  Don’t worry, I’ll share everything on here with you.

Are you starting with AdSense or affiliate niche sites?

Do you have plans that you’re willing to share with us on here?

Remember to return to see my progress and read how my escape plan is progressing.

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Tags: Active Income, Beginner, Passive Income