Many financial advisers have been working to get people excited and passionate about passive income. They preach that you don’t need a job and once you start building passive income you won’t have to worry about working ever again and can live your life the way you’ve always wanted to. While this is true- passive income is the way to build wealth and achieve financial freedom, it’s not recommended that you quit your job and start relying on your ability to create passive income to pay the bills right away.
Alot of the most lucrative and most passive income streams require alot of starting capital to get going. So for someone who has a low net worth and credit score, whose primary choices for passive income streams are either blogging or vending, quitting their job is not an option. While it’s good to always keep the end in mind and remind yourself daily of your goal to one day become financially independent with passive income, what you should be doing now is slowly working your way up the continuum of passive income producing assets.
The least passive investment you can have is your job. With a job you are trading time for money- you work a certain amount of hours and you get paid based on the work you put into your job. The more you work, the more you get paid. The problem with this is that because you only have a certain amount of time to spend working you are limited. Sure you can get promoted, but you will always be trading time for money.
Automated Ebay businesses and blogging are ways to create passive income, but both require a lot of effort for limited return. The choice of most new investors who have little money to start with but who seek to create passive income is a bulk candy business. Although it would be difficult to live off the cash flow you receive from your vending machines, you’ll feel so good knowing your money is passive. You’ll take comfort in the fact that the cash flow you receive doesn’t take a lot of time and effort. Once you recoup your original starting investment (say $300) all the money you make after that, besides what you must spend on the candy, is pure profit.
Many people have started with a simple vending machine, rolling their profits into more vending machines, and eventually more passive mediums such as real estate or stock market investments. Remember that it’s possible to start with nothing if you keep the end in mind.
