There’s one harsh truth about passive income that you should understand. I feel the need to share this with you since I’ve been chasing after various passive income streams for the past five years.
What is this harsh truth?
I wish I could tell you that your biggest problem will decide which beach to lay on all day while you just hang out by the sun. I wish I could further sell the dream. I just can’t do that.
The truth about passive income is that you either need a lot of money or a decent amount of time to see any real results (real passive income).
That’s just the way it is. This idea of making thousands of dollars with one penny invested just doesn’t work.
Sure there will always be exceptions to the rule. There will always be that one person that invests $10 and makes thousands. However, for the rest of us, we need to invest some serious time or money into passive income to see any decent results.
How did I invest time and money into passive income?
I wanted to write about my own experiences with passive income and the time/money involved.
I invested a ton of time to work and save up money so that I could buy my first rental property. I worked a lot so that I could have the money needed for a decent down payment on the property.
Then I had to turn around and invest this decent chunk of change into my rental property. The true cost here was the opportunity cost because I could have done so many other things with that money. Instead I chose to invest it into a rental. I’m glad that I made that investment because now the property has appreciated in value and my tenant helped with my passive income.
When it comes to my experiences with the stock market, I had to invest a lot of money. To see any results I had to risk some good money. I would’ve never seen any results if I always played it safe and just tried to invest a few bucks. I eventually pulled out (no not what you’re thinking). I pulled out of the stock market. I then put my money into my rental property and my various ventures online.
Where am I going with all of this?
If you want to see any real passive income you need be willing to either invest a good amount of time or money.