HOW TO EARN PASSIVE INCOME 💸 (Ways To Make $1,000 Or More Each Month!)

rootF IMG 605f325b43c9d

this right here is the reason why most people never make passive income in their entire lives it's because it starts off very very slow at first so I decided to start making passive income by creating a youtube channel back in October of 2016 and this right here is exactly how much money I made in the first three months of building this YouTube channel now I was spending anywhere from three to five hours a day and I dedicated my entire weekends to building this channel so I was putting a lot of effort into this and this is how much money I was making in return so the first month I made two dollars and fifty-seven cents for my efforts the second month I made seven dollars and sixteen cents in the third month I made $59.99 now most people would look at something like this and say that it will never work that's a stupid idea to be putting in dozens of hours every single week to be making seven dollars in a month or even $60 in a month it's just not worth it I saw a 178 percent increase from month one to month two and a seven hundred thirty-seven percent increase from month to two months three and that right there is what told me that it was possible to earn passive income now yesterday I did a video talking about how I quit my $70,000 a year job in order to follow a different business model that allowed me to earn passive income and that video is absolutely blowing up so thank you guys so much for watching that and sharing that video as well it looks like we're gonna do about 15,000 views in the first 24 hours and that's actually a first for this channel that's the most views I've ever gotten in that short of a period of time and I had a lot of questions from you guys one of them was how do you make passive income that's gonna be this video today and the other one was how do I make passive income so what I'm gonna do for you guys is if this video gets 1000 likes in the first 24 hours I'll do a video tomorrow on how I earn passive income exactly what I'm doing to make the money I am making and what my different revenue streams are so if you guys want to see that video make sure you hit that like button if we do a thousand likes in 24 hours I will post that video tomorrow but the first thing I want to do is just briefly talk about the difference between passive income and active income for those of you that are not familiar I refer to passive income as patient income or you're being paid for your past effort and what that means is you put in a lot of work today but you're gonna make money potentially for the rest of your life as a result but you have to be patient when it comes to earning passive income because you're not going to see those results today look at me for example I made $2.00 in my first month of doing something every single day putting videos out there replying to comments building a following online and some people are gonna do this and make absolutely zero dollars because they won't have the ability to run ads or do anything like that so you really have to make sure that when you're deciding to make passive income it has to start with another PA and that is your passion you have to be passionate about what it is you are doing otherwise you're not going to be able to do it long enough in order to make any real money with it sure there's always the opportunity to grab the low-hanging fruit maybe it was cryptocurrencies maybe a couple of months ago it was fidget spinners or whatever the big hot trend is but if you're not passionate about these things you're not gonna want to do it for very long and that's gonna be a very short-lived trend as far as the interest surrounding things like that if it's gonna be hot for a short period of time maybe you want to jump in and make fast money but I'm always leaning more towards a more patient and slower business model that's going to be viable for a much longer amount of time now I refer to active income as impatient income or now income I want my money right now and if you want that it's very easy you could probably leave your house and go down the street and find any store or find a McDonald's or a fast food place go in there and you could be earning active income by next week but the problem with active income is that you only make money when you're working and you have to be working for somebody else and you have to be active in order to earn that income and so maybe you work eight hours a day and you make money for those eight hours but the other 16 hours a day you're making absolutely zero dollars and you don't make any money on your weekends and days off because you only make money when you're actively working for that money so the people that are truly successful when it comes to making passive income are those that can be patient enough to ride out the early months or maybe even the early year where you're not making much money at all because you see the big picture and what I want to do right now is show you guys the big picture what a little bit of passive income can really do for you down the road so this right here is what gets me excited about the idea of earning passive income and what we are looking at here is if you earn this amount from age 18 to age 65 so let's say you're a young person and I'm assuming that most people watching this video are going to be either teenagers or people in their early 20s this is what passive income could do for you for the rest of your life and we're going to start out very small we're gonna start out with 10 cents a day so if you earn 10 cents a day of passive income from age 18 to age 65 you would earn one thousand seven hundred fifteen dollars over that span of time now that's not a lot of money but it gets more exciting as we increase the amount of passive income that you're earning each day if you earn just one dollar a day of passive income over that span of time now we're talking about seventeen thousand one hundred fifty dollars ten dollars a day now we're talking about a hundred seventy-one thousand five hundred dollars and if you get to the point where you're making a hundred dollars a day of passive income we're talking about over one point seven million dollars over that span of time I don't know about you guys but if I could put in a little bit of effort in my teens or in my 20s that would allow me to earn 1.7 million dollars for the rest of my life I would certainly be a little bit more patient and I would definitely be excited about that and the thing that people don't realize is that this is not unrealistic to think about making a hundred dollars a day of passive income it took me about six months to build up a passive income stream that paid me $100 a day but I worked every single day for three to four hours in order to do that so it required a lot of upfront investment of my time but of course now it is well worth it because I'm now making in some cases almost a thousand dollars a day depending on what I'm making from each of my income streams so it's well worth it to invest your time into making passive income and I'm hoping that now that you see numbers like 1.7 million dollars you're a little bit more excited and hopefully a little bit more patient about the amount of time it's going to take to get there so let's use an example here let's say it took you six months to build a passive income stream that earns you $10 a day is that worth one hundred seventy one thousand five hundred dollars to use six months of your time that worth over a hundred seventy thousand dollars or let's take it a step further let's say it took you two years to build a passive income stream that pays you $100 a day is that two years of effort worth over 1.7 million dollars I'll tell you what guys I don't care what I have to do for two years as long as it's not something against what I believe in I'll do pretty much anything to earn 1.7 million dollars in two years that is life-changing income right there so when you start thinking about passive income in terms of what this could do for you over your entire life you start to have a different perspective and maybe you're gonna be a little bit more open to putting in that work initially but now that you understand the true potential that passive income has I want to go through a couple of different models that will allow you to earn passive income so the first way you can earn passive income and personally my favorite way to do it is through investments and there's all kinds of different things you can invest in out there you could invest in the stock market which is what I do you could invest in stocks that pay you dividends you could invest in real estate you could invest in peer-to-peer lending or maybe you want to be a little bit more risky and invest in something new like crypto currencies or you like the idea of holding on to precious metals and gold or maybe you just want to go out there and buy antiques or classic video games because you believe they're going to go up in value the idea behind this is that you're going to be investing in something that is going to appreciate in value over time or you're going to be buying something that's going to pay you whether it be in dividends or rent checks and I'm talking about a piece of real estate or investing in a dividend stock so if you buy a piece of real estate if you buy multifamily real estate and you rent it out to people you can collect those rent checks generate the positive cash flow build free equity in that house while collecting money in your pocket every single month now I will say this it's going to be a lot harder to get into real estate than it is to get into the stock market it's a lot easier to open up a brokerage account and buy a few shares of Procter & Gamble or AT&T than it is to go out there and buy a piece of multifamily real estate and the one downside to investing is that it takes money to make money so I see investing is actually something you should do once you're earning passive income so once you figure out how to earn passive income that is when you take that passive income put it into another passive income model and then your passive income is earning your passive income it's really an unbelievable system here but that's exactly what I do I your in passive income from my youtube channel and I funnel as much of that money as possible into my investing account so that way I can earn interest and I can earn dividends and get a return on my investment so if you invest in the stock market historically speaking you'll get about an 8 to 10 percent return on your investment if you buy into dividend stocks those are gonna usually be around a 3 to 5 percent dividend yield real estate does have typically a higher return somewhere around 15 to 20 percent if you're buying real estate and you're renting it out and maybe you're interested in doing something like peer-to-peer lending and that can be anywhere from a 6% to 25% return depending on the risk of the loan and the creditworthiness of that borrower but no matter what here the idea behind this is very simple you're going to put your money to work for you and you're going to allow your money to earn interest or earn you dividends or allow you to collect rent checks by having you own a piece of real estate and providing housing to people out there so how much money could you expect to earn by passively investing in earning a return on your money well if you invested just one thousand dollars and earned an eight percent return from age 18 to 65 and I know a lot of people are gonna say who has a thousand dollars at 18 years old what I know for sure that I got a graduation gift from my family and the combined amount was about a thousand dollars so maybe I decided that I wanted to put that money into an investment account instead of spending it on something else so it is possible to have a thousand dollars at 18 years old and if you did that that one thousand dollar investment would turn into 37 thousand dollars now what gets even more exciting is looking at numbers like this if you invest in just ten dollars every single month we're talking about the price of typically a lunch when you go out to lunch it's gonna be ten bucks if you invested ten dollars a month over that span of time we're talking about fifty four thousand dollars but now let's say you're looking to put away a hundred dollars a month so let's say you learn how to make a hundred dollars a day in passive income doing something else and you put just one day's worth of income into your investment account every single month well from 18 to 65 you would have $540,000 by the time you go to take that money out now a lot of people are going to argue with me here and say what about investment related taxes and inflation and if you want to calculate these numbers yourself then take about 2% out for inflation and figure you're gonna have long-term capital gains but there are investment accounts out there like a Roth IRA where you can invest and not have to worry about the tax implications or the long-term capital gains because it is a retirement account so there are ways around the taxes and then finally let's say you were going to invest $500 every single month from age 18 to age 65 earning an 8% return well you would have 2.7 million dollars by the time you were 65 years old that is what passive income through investing can do the second way to earn passive income is to build a following or build an audience now how can you do this there are so many different ways you could do this you could start a podcast you could start a forum you could start a Facebook group you could start a YouTube channel you could start an Instagram motivation page you could start a Facebook page for Facebook videos there are so many different ways you can build an audience online or better yet maybe you're doing a little bit of everything and you have a presence on multiple different platforms so many people get caught up with this idea here of what they want to do as far as building an audience online and the best piece of advice I can give you is start with you what you are passionate about because if it's not something you're really interested in on a natural level you're not gonna want to do it for a very long time so figure out what you're truly passionate about and figure out how to help other people who are looking to learn about that or learn about how to become the way that you are I think the best thing for people to get involved with right now especially young people is something involved with the internet and building a following and being an influencer online and maybe you don't want to be in front of the camera well maybe you're gonna do a podcast instead or maybe you don't want to be involved in it at all with your voice or your face and so you write a blog instead there are so many different things you can do out there in order to build a following online maybe you're going to do motivational pictures on Instagram or maybe you're going to be a curator of content and you're going to find content that other people have made that you're going to share with your audience that's not really the point of this what I want to talk about is how you actually make passive income once you've built an audience online there are just so many different ways you can do it you could build an email list I could go on and on about this as far as building that audience but once you've built that audience how do you actually make money with it that is the question I'm gonna answer now so the idea behind this here is finding 1,000 lawyer fans and once you have a thousand loyal fans you're set as far as passive income goes because you can make a lot of money by just having 1,000 oil fans and being able to help these people in a massive way so first of all let's say you have a five-dollar patreon site people are contributing five dollars a month to you because they like what you're doing they like what you're putting out there in the world well now all of a sudden you're 1,000 lawyer fans are paying you five thousand dollars per month then let's say you also have a shirt that you make and you make fifteen dollars on that shirt you sell it for twenty and it cost you five dollars to make it well now you've made fifteen thousand dollars off your one thousand lawyer fans but you also have a book that you wrote and it's a twenty dollar book and those 1,000 people have bought that book well now you made twenty thousand dollars off that book but then you decide that you want to make a video course for these people and put together a phenomenal course about what you're teaching them well now that ninety seven dollar course has made you ninety seven thousand dollars well let's say for example now that your loyal fans did all of these things they bought your book they're backing you on patreon they bought your course well now you've made one hundred thirty two dollars off those people plus five dollars a month on patreon so now we're talking about a hundred thirty two thousand dollars plus five thousand dollars a month that's enough for most people to have a good living there that's a $60,000 a year job for most people but you're making it in a passive way now yes you are still going to have to be doing what you enjoyed here and posting your content on whatever platform you are doing but if it's something you enjoy is it really work at the end of the day I mean people might argue that my YouTube channel is not passive income because if I stopped putting out videos like this I'm gonna stop getting people who are supporting me through my other avenues but I love what I do here and I would never want to stop this so it's really an argument there of is something you're passionate about truly work at the end of the day so the third way I for earning passive income is to get involved with vending whether it's vending of beverages foods or possibly candy or gum balls but get involved in the vending business now yes this is a business that does require upfront capital and yes this is a somewhat passive somewhat active business because of the fact that you're going to have to go around collect money from the machines and restock those machines but eventually you could get to the point where you have a large enough vending business that you can pay people to maintain the machines for you and at that point you have a totally passive business so we're gonna go ahead and go over an example of a vending machine business and we're going to use the numbers here as far as a soda vending machine costing three thousand dollars now typically speaking a soda machine is about three thousand dollars a snack machine is about thirty six hundred and maybe you can find a gumball machine for five hundred dollars but the one thing I will say about the gumball machines is that this really doesn't work anymore I remember a couple of years ago I looked into this myself and the reason why is because most people don't carry any cash anymore and so the gumball machines and the snack machines really worked well when people had pocket change but because most people especially young people are only using their cards you can't exactly swipe your card to buy a 25 cent gumball or a handful of peanuts so the advantage of the snack machines and the drink machines is that most of the new ones today have the ability to pay with a credit card and so you're able to get people who will buy these because they can use their credit cards if it was a cash-only machine I would be very hesitant to get involved with that because of the fact that most people simply do not carry around cash anymore but I'm gonna go ahead here and go over an example of a vending machine business let's say you bought a soda machine for $3,000 and you were making a profit of $50 per month from that machine and you were reinvesting all of your profits back into more vending machines so at first you spent $3,000 and you're earning fifty dollars a month of mostly passive somewhat active income so if you were looking to save up to buy your second vending machine it's gonna take you sixty months or five years to do so but here's where it gets exciting once you have two vending machines you're now making $100 a month not just $50 a month and be able to buy that third machine and half the time or just thirty months and once you have those three machines you're now making $150 a month and you'll be able to buy the fourth machine in half the time again or just 15 months and once you have four machines you're making $200 a month and you'll be able to buy that fifth machine in half the time or just seven and a half months so now you start to see the power of this model here of reinvesting your earnings back into the business and having multiple vending machines all of which are paying you income every single month and maybe you want to get to the point where you have a hundred or 200 vending machines all over and you're paying somebody to maintain it for you well at that point in time you're earning purely passive income off of your vending machine business that you started with just one vending machine and this right here is very possible you just have to be patient with it and be able to see the long-term outlook of what you're building today now the fourth way that you can earn passive income is something that is relatively new and that is mining for cryptocurrency now before you do this you're gonna want to make sure that you truly believe that these cryptocurrencies are going to have long-term value and if the value were to go down you're still able to turn a profit but this is actually something my brother does he does cryptocurrency mining for light coin and it's kind of a joint venture where I gave him alone he's paying me interest back on that loan and as a result he was able to buy his cryptocurrency miner and he's making money every single month from his miner and I'm gonna go ahead and share the numbers with you guys now on this very small passive income business that he has so my brother has a cryptocurrency miner that's mining light coin it's called AK ANC Titan it's a 4 cube unit and the total investment here was $3,000 so I gave my brother a loan of $3,000 towards his machine and he's agreed to pay me back the $3,000 loan plus a small amount of interest on that so I've given out a loan I'm making passive income on my loan to him and he's bought a machine a light coin miner that's going to allow him to earn passive income as well so first of all the power cost associated with this KNC Titan that's the name of this machine is about $60 per month but depending on the light coin prices he's able to earn about $100 to $200 a month at the current light coin prices of $100 is the low end and $200 is the most he has made and he's been mining litecoin for all of 2018 so it's actually a newer business but it's something he can be doing for many years going forward so after you subtract the power consumption cost he's making about $40 to $140 a month off of this light coin miner that he has and if you guys wanted to you could follow the same exact model we did in that vending machine business well you're reinvesting your profit or your earnings back into more litecoin minors or cryptocurrency miners that are going to allow you to earn more money and then it's going to have that same effect where you're able to buy more and more of these and start to make a good amount of money here but again keep in mind you do have to have long term faith in these cryptocurrencies and believe that they're going to have long term value and not just be a short-term asset that people are interested in today but down the road will have little to no value but if you do believe in cryptocurrencies and you have some money in you're interested in cryptocurrency mining that might be an interesting way for you to earn passive income now as I'm sure you guys can imagine there are countless ways out there to be earning passive income all of them tie in with this idea of being patient and earning income over a long period of time but I'm going to share with you a couple more ideas as far as earning passive income first of all if you know a lot about app development you could create an app that you're selling on the App Store on Android or on the iPhones and maybe you're making a couple bucks every time someone buys your app or $0.99 well those $0.99 purchases are going to add up to a lot over a long span of time maybe or somebody who is into making music and you want to make audio tracks that you're going to sell to people or you're gonna sell the rights to use that audio and at that point you're getting a royalty and royalty income is going to be passive income as well or maybe you're a photographer and you're gonna do the same thing but instead you're gonna be taking stock photos so you go out and you take beautiful photos and then you're gonna put those photos up on a stock photo website and then every time somebody looks to use that photo they can buy the rights from you and you're gonna make a royalty on that again earning passive income another idea to earn passive income is to buy website domains if you have an idea of what website domains might be popular down the road and you buy them today well possibly down the road you might be able to sell those at a higher price if there is a willing buyer another possibility would be if you have land and you live by a busy road consider putting up a billboard if you're allowed to do that and rent out a billboard there's a lot of people that live near me that have billboards on their land and they're getting paid every single month and another thing you could do is if you have farmland maybe you're gonna rent that space out for a cell tower and you're gonna make money off that every single month now I know that most people probably do not have land for a billboard or a cell tower but again these are very good passive income options if you do have that another way to earn passive income it does require a lot of upfront capital but you might want to open up a laundry mat in your area if you have a lot of people that are renting and you could put together a laundromat and also incorporate your vending machine business and have both of those going and then a final option for earning passive income is to rent things out maybe you're going to be doing bouncy house rentals or you're going to be renting out tables and chairs for events or maybe you're renting out power tools things like that if you start out a rental business all you're paying for is the upfront cost of those items as well as any kind of maintenance and the rest of that is mostly passive income because all you have to do is probably drop those things off and pick them up later but if you wanted to you could definitely scale that business to the point where it was completely passive so I want to wrap this video up with one final thought here for you guys and that is the fact that the average millionaire has seven different streams of income so when you're thinking about earning passive income your goal should not be to have one method of earning income your goal should be to have at least seven different streams of income seven different things that are paying you money every single month and the reason why you're doing this is because you want to be diversified across many different income streams I like to think of this as an oil well where you're drilling for oil and rather than having one oil drill you're gonna have seven of them so would I rather have one oil drill that's getting me ten thousand dollars a month or seven different wells that are getting me a thousand dollars a month I would always rather have seven different streams of income even though it's a lesser amount I understand the importance of being diversified across multiple different income streams because if one of your oil or income streams goes dry you want to have other ones to offset that so you always want to make sure you're diversified with your income streams because there's always the possibility that one of your streams of income could go dry so this right here is what passive income should look like at the end of the day you have multiple different income streams paying you money every single month and those add up to a large amount I would say it's best to do this and diversify yourself across multiple income streams rather than putting all of your eggs in one basket but to summarize here passive income is patient income you have to be very patient in my opinion you have to be passionate about what you're doing otherwise you're not going to want to do it for very long and it's going to take a lot of time because you're being paid for your past effort or the effort you're putting in today anyways guys thank you so much for watching this video I hope you got a lot out of it if you guys have any other ideas about earning passive income or if you have any stories to share about different things you've tried even if they've failed please drop me a comment down below and I'll do my best to read and respond to every comment out there and then do keep in mind guys if I get a thousand likes on this video in the next 24 hours I will upload a video tomorrow talking about my passive income business and my different income streams but I hope you guys have a great rest of your day if you're new to my channel please consider subscribing to be notified of any future uploads and I will see you in the next video if you are interested in learning more about investing in the stock market I've created a free course just for you the link is in the description below here are a few other videos you might enjoy as well you


As found on YouTube

You May Also Like