As the decades go by more and more individuals have explored the world of
passive income and the options that exist within it these options are vast
and many see it as a way not only to supplement our nine-to-five income but
even unlock a path to financial freedom however not everyone succeeds in their
ventures and contrary to popular belief passive income is not the easy way out
it requires the investment of time money and effort to build up a stream of
passive income in a myriad of other less than glamorous elements and in this
video I will share with you seven shocking truths about passive income no
one talks about and if you're new to the channel then hit the subscribe button
below for more a life-changing content now there is no doubt that Postum income
comes with some great benefits one of which is the limitless nature of it with
positive income you can set up several streams of income and relax while they
pay you that is if all goes well you can also pick something you love doing and
if it can be automated then it too has a potential to make you money while you
sleep finally when you earn passive income you can be your own boss and
honestly who doesn't want that however these are all the rosy aspects of
passive income everyone talks about but no one ever talks about the potential
downsides there is no discussion about the risks frustration and rather high
amount of time involvement that is required for something that is said to
be positive since you already know the benefits of earning passive income I
think it's worth going over the seven aspects of making money while you sleep
that no one talks about so that you can educate yourself on what it truly means
to be earning passive income here are seven truths I've come to realize in my
own passive income journey truth number one positive income can be unpredictable
for you to understand what I mean here I think it's important I split passive
income into two different types fixed passive income and variable passive
income with fixed passive income you are sure of exactly how much you will be
making from the stream on a weekly monthly or yearly basis no matter what
happens unless of course that particular stream of income is destroyed a good
example of a fixed stream of passive income is rental property if you have a
building with four apartments and each apartment pays ten thousand dollars a
year you are absolutely certain that the apartments in your building will bring
you 40 thousand dollars in rent every year
on the other hand variable passive income streams are those which you
cannot predict how much they will earn you on a weekly monthly or yearly basis
a good example of a variable passive income stream is a blog there's no way
to tell how much your blog will make it could earn you $200 this month four
hundred and fifty dollars the following month then nothing in the third month
for instance in one month five different brands may pay you for advertising and
only one needs promotion the next month the inconsistencies with variable
passive income is what makes it dangerous to solely depend on for a
living this is not to say you should shun the idea of setting up such a
passive income stream but be advised to set up a means of fix passive income
alongside of truth number two passive income streams can die out contrary to
what many people believe no single stream of passive income can last
forever they can be destroyed or become obsolete in the blink of an eye take
rental property for instance a building can be destroyed by an earthquake or a
different type of natural disaster another example of passive income
streams that can die out is a blog or a website trends may change and people may
no longer be interested in what your blog is offering the case may be that
some former competition came into play and knocked your blog out of business if
you're really serious about living off passive income then it would be wise to
set up multiple streams just in case one of them starts getting shaky I recommend
you both passive income streams in both physical and digital assets so you can
be sure that you diversify your streams to mitigate risks as much as possible
this could be in the form of a mix between rental properties blogs and
dividend producing stocks then even if one dies out you still have to others to
support you financially truth number three passive income is not always
superior to active income as good as passive income can be it is not
necessarily better than active income in fact there are active income streams
that many passive income streams cannot match up to now you may have worked as a
bartender or a cashier in a not too prestigious organization for a less than
impressive salary hence you might think that passive income beats active income
hands down and not may be true in your situation but it isn't in every
situation if you have a high-value skill or can learn one then earning active
come can actually be much more lucrative than passive income there are
consultants who make as much as $500 per hour just as there are hair stylists
that can make a thousand dollars on a single haircut
let's use athletes as examples Lionel Messi earns over $400,000 per week
playing for Barcelona FC in Spain that's active Inca dr. Dre an American music
producer sells an instrumental for more than a million dollars and that is also
active income in essence don't quit your day job just because you were enamored
by the thought of making money while you sleep there are tons of different ways
to make a lot of money actively and when paired with passive income can help you
scale up your income frightening ly quickly truth number for passive income
requires regular maintenance no one may have told you this but with passive
income you can't just sit back and expect money to keep rolling in without
some form of maintenance and rental properties are a great example rental
properties need to be maintained regularly for it to remain a source of
passive income because the paint will eventually fade or peel off the grass in
the yard will grow too long the roof will develop leakages true roots may
have left cracks in your walls and the hinges on the gates may have come off
for you to ensure your rental building remains alive and worthy of rent then
you have to dedicate some money to maintaining it regularly no one in his
or her right mind will pay rent for a building that looks like it's about to
collapse now you may think to yourself that this routine maintenance only
applies to rental properties right well not quite
even all 9 streams of passive income need to be maintained regularly your
website for instance will need software upgrades to ensure it keeps running
smoothly you will also need to consistently update its content to keep
it fresh and engaging for your audience have you heard of a website crash yeah
that can happen too and you need to sort it out with all it said I'm sure you can
agree that passive income is not a hundred percent a sit down and relax
thing truth number five reaping the rewards of passive income takes time to
invest in a business venture is one thing for that venture to start bringing
in a reasonable return is another you may not have heard this in other videos
you've watched but it takes a good amount of time and effort to build a
profitable stream of passive income nothing profitable is built overnight
take dividend stocks as an example their outflows are usually paid quarterly and
depending on the value of the shares you have these dividends may not even be
worth much or worth waiting a whole three months for you may need to
reinvest your quarterly dividends into buying more stocks so your dividends
will increase it will take some time for you to grow the value of your dividend
checks to an amount you can deem as sufficient also stocks are long-term
investments you can't buy ten thousand dollars worth of stock today and expect
it to be worth a million dollars next month unless something totally abnormal
happens that is rental property is another example of a passive income
stream that takes time to set up you may have to renovate the property and that
definitely takes time and coordination also it will take you several years and
rent to recover the amount of money spent in purchasing the property
this is amidst many maintenance fees you will have incurred during these years
for online streams of passive income well the rewards don't come overnight
either it will take a reasonable amount of effort to build that knock out
website or grow that Instagram page of yours even after the website is ready it
would still take time to generate the kind of traffic that would attract
advertisers and this could be anywhere from six months to multiple years for
you to build that kind of traffic your website has to be filled with quality
content and it has to be felt consistently if it's not your site
visitors will get tired of seeing the same content all the time and it will
eventually stop visiting your site you may be required to hire freelance
writers to fill up your website with good content you can also do that
yourself but that would take a lot of time and effort so you see setting up
and making money from a stream of passive income is not as easy as anyone
may have told you truth number six a single stream of
passive income may not be enough many people think that one stream of passive
income will be enough to cover their living costs and achieve financial
freedom probably because they are so used to having a sole source of income
in the way of their nine-to-five job however to be financially free there has
to be a consistent inflow of money from several sources one stream may not be
enough imagine if you were depending only on dividend stocks to survive what
happens if the stocks crash you'll have nothing else to fall back on what if
your rental property collapses or what if competition knocks out
site and renders it obsolete having multiple streams of passive income is a
must if financial freedom is what you're looking forward down the line with
multiple streams of passive income you can be at rest knowing that many things
are working for you it wouldn't bother you so much if one of the streams dry up
you'll still have others to keep you afloat truth number seven success isn't
inevitable I don't think there's any mentor that would be comfortable telling
their students that they may fail even after all they've taught them well this
may sound harsh it remains true don't let anyone deceive you into
thinking that setting up streams of positive income is a guaranteed means
through which you'll become rich all profitable ventures require effort the
right planning the right execution a few failed attempts and a little bit of luck
to succeed while miracles can still happen and that blog of yours may blow
up overnight I wouldn't advise you to bet on it you may fail in your first
attempt in this may be for a number of reasons but it's up to you to determine
those reasons and make amends in your next attempt it could take you as many
as five failed attempts for you to succeed once however if that stream of
income sticks then you'll be ready to start building more - something's up
passive income is really great and it can earn you money even when you're fast
asleep however it is not a walk in the park there are several aspects to it
that many will not tell you however I hope this video shed some light on the
reality is that earning positive income can entail thanks for watching if you
want to go from the life you have to the life you deserve then hit the subscribe
button now