You Can’t Start With Passive Income

Passive income, the holy grail of income streams. It’s every entrepreneur’s dream to reach.

However, few can actually get there. And none get there right away. Here are a few passive income streams I hope to get to someday, and a few active income streams to help.

Passive Income

Depending on who you talk to the definition of passive income will be different. For me passive income is getting paid again and again for work you have already done. For instance, buying a stock that pays a dividend is passive income. You buy the stock once and receive dividends for life. Here is a list of passive income I want to get involved with but am not currently.

Dividend Income

This is really the most passive income I have ever heard of. You put capital in one time, you then collect a check for life. It’s far more complicated than that but Jason goes into more detail about such things on his blog.

The reason I’m not involved in this income yet is debt. A good dividend yield is 4%, where as most credit cards are well over 12% interest. I can “make” more money by paying down debt than I can by investing in stocks.

Even when I become debt free, I have other places to put my money that make me significantly more than 4%, however to grow multiple income streams should be the goal for everyone so I’ll be investing as soon as I’m out of debt at least some.

Blog Income

You write a blog article that ranks well on google and people come to it everyday. Sometimes they just look at the free stuff, other times they click on ads or affiliate links. This brings in income for something you did a long time ago.

The problem though is ranking, and keeping that rank, on Google. I have only successfully got on the first page of google searches a few times, and most of those times are not for this site. In the future I plan on creating mega posts that have so much information and help to people that there is no choice but to rank on google. When that happens I will have created some passive income from this site.

Automated Selling

Another popular way to make passive income is to sell things online. Whether its E-books, courses, or training’s selling online can be a good way to make money. The trick is to make the whole thing automated. Sure the first time you’re going to have to be very active with the selling, the upkeep, and customer service, but after that initial time it can be pretty hands off if you plan it right.

I don’t currently have any type of training I could automate, but maybe in the future I’ll create on a course on something like selling Amazon FBA, who knows.

Active Income

Active income is income you have to work for to get paid. You can’t just “set it and forget it” instead you need continue to do the job or no income will come. Here are a few I’ve done and why they classify as “active”.

9 To 5

This one is pretty self explanatory. You find a job and get paid typically per hour. Most jobs require you to work 40 hours, some more some less, and pay you accordingly. This is great if you want to have a amount of security as it isn’t often that you lose your income right away. This is how the vast majority of people make their “active income”.


Writing, VA work, graphic design, software development, and on and on. Anything that is needed to be done in the world can be done by a freelancer.

Freelancers work for themselves and will do one off projects for clients. Because they do this they get paid far more than a typical employee. They also have to pay self employment taxes so they need the extra money just to do that.

Because most of the projects are one time or sporadic a freelancer has to continually look for more clients.

Weeks where I have plenty of work I focus just on the work I need to do, on weeks where I’m light on work I spend most of the time pitching clients. Because of this actively searching this causes a lot of stress and isn’t for everyone.

You can make a lot of money, but have to be willing to deal with good months and bad.

Amazon FBA

There are so many people that put this in the “passive income” category, but I don’t. Yes, if I buy something today and send it in I no longer have to “work on” that item. However, I have to check to make sure the price is still competitive, I have to also make sure the business is growing and continue to buy things to send in.

If I was to simply buy and wait for that to sell I would make money, but it wouldn’t be a business like it is. I wouldn’t be able to count on the money to pay bills. I always consider the work I do this month to be of benefit for next month.

To me this is a very active income source and not at all passive.


Yes blogging is in both passive and active income, it’s weird like that. Whereas an article you write once may continue to get traffic for years, you never know what article it will be.

I worked just as hard on the articles that rank well on google as I did the ones that don’t. In fact, you could spend hours, days, or weeks working on one article in hopes that it will be the best and then almost no one ever reads it.

In order to get those passive income articles you have to write a lot of active income articles as well as post on social media and advertise your site. It’s a lot more than simply writing, editing, and posting.

Rideshare Driving

I have been very lax with this this year, but need to get back to it. It’s a great way to make quick easy money. You sit in your car and drive people around, some of them are friendly others don’t say anything.

For those with a car it’s a great way to make some extra income to get out of debt, start a different business, or just have some fun.

Why You Start With Active Income

Passive income really is the holy grail of income streams but you can’t start there. You can’t invest in dividend paying stocks without having capital to do so. To get capital you have to have an active income stream to invest.

Starting a blog costs money and time, until you make that investment you can’t create the passive income that comes from a blog.

Teaching people how to do things means you have to know how to do it. If you haven’t taken the time and made the money than no one will listen and your automated process will be a failure.

In order to start any type of passive income stream you have to work at one or several active incomes for months, years, or decades. It isn’t an overnight success. But with hard work, dedication, and determination to be the best future self you can be you can do it.

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