Passive and Residual Income
I’ve come to the conclusion that a passive income has to be the best way to live – set yourself up now, and reap the rewards later!
For instance, I run a few websites at the moment, this one included. The goal is to see (it’s just a test) how much money you can actually make from having a few Google AdSense advertisements around the place. In around two months I have made a whopping US$13.01. I tell my friends about it and they just laugh at me, “It’s not worth the hassle” they say.
For $13.01, sure, it’s not. But what about after a year? That $13.01 becomes around $80. Now quite obviously I’m not going to be able to survive on $80 a year any time soon, but I think this is where most people give up. This is residual income – from time to time I need to add some content or do some maintenance, but essentially when I’m not directly working on making money, the content is still working for me.
Share dividends, interest on your savings and so on – there are plenty of ways to generate small amounts of income that can one day build up to a considerable amount. For some people, it’s all about investing money and supplementing their current income, whereas for others it’s about investing a small amount of money and time, to just earn enough to get by.
It’s typical of people nowadays to discount the little things. They discount the small amounts that they spend as nothing. $5 a day is easy to spend, but after a year that is $1825! Smokers for instance, have a real financial benefit from quitting, if nothing else. Turn it around, and imagine running 5 websites making $5 per day – that is over $9000 a year! I could invest that money into shares and use the dividends to generate more income too. It’s ongoing, but there is real potential in it.
What I need is an idea. The world is full of them, but unfortunately my head isn’t. I need to make more websites, I just can’t think what I should make them on and how I can make them different from everyone elses.
This blog is pretty much the exception to the rule. While I do have an ad on the page, it will never really generate much, if anything. Everything I am reading now is about Search Engine Optimization, page rankings, and so on. You really need to push the content towards the viewers, then almost manipulate them into clicking your ads. My blog has too much random content to actually get a high page ranking, and as a result it will never really receive the hits. This is “my place” on the internet, and what is say here is as biased or unbiased as I want it to be – it is just my honest thoughts, and there is nothing more to it.
Do some reading up on it some time – passive income is great, but it’s probably the hardest income to earn!