How to Build RELIABLE Passive Income for 2022

So back when i was at uni four or five years ago i remember having this moment where one day i searched for physiotherapy jobs in my city and it was at that exact moment of my life i realized i was never really going to make all that much money as a physio there seemed to be this ceiling on how much i could make working for someone.

Else and i didn't like that but at the same time it made sense i have limited hours in the day which means i can see a limited number of people which means my boss can only pay me a certain amount to ensure the economics of their business work and i realized that in fact the only way.

I would ever make a large sum of money as a physio is if i was the person that owned the clinic now i didn't realize it at the time but what i just worked out is one of the most important financial lessons you can learn and that is to achieve real financial freedom you need passive income.

To remove the ceiling on your income to truly achieve the big bucks and achieve real financial flexibility you have to focus on passive income and no passive income is not making money for doing nothing as much as the youtube ads want you to think that it is passive income is quite simply it's a.

Model of income there's active income which is trading your time for money and then there's passive income which is putting in a lot of effort up front and sometimes effort into maintenance to then be able to potentially generate income around the clock regardless of whether you're actively working or not and if you came here looking for some.

Sort of get rich quick scheme then sorry this video is not for you however if you came here because you know you realize that the way you're going to achieve financial freedom and retire on your own terms is through building passive income streams then this video is definitely for you so.

Let's talk about the genuine ways that you can start earning passive income that are scalable and quite seriously can get you to ceo level paydays this video is brought to you by sharesight seek of tracking your performance manually track capital gains.

Dividends and currency fluctuations easily and when it comes to tax time have everything you need ready to go with just a click of a button try sharesight for free or use the referral link in the description to get four months free when you sign up to an annual plan okay so when we talk about passive income sources that will.

Genuinely shift the needle and propel you towards financial freedom we have two umbrella categories there's investments and there's business activities so stocks and real estate would obviously fall under investments whereas things like selling products online or affiliate marketing or youtube etc they.

Would fall under business activities so let's start with investments now as we know there are two ways to generate money from investments there's capital appreciation and there's income for building passive income obviously we're going to be looking at the income side of that equation not so much the capital appreciation so.

Let's start with property to start from scratch and try and build passive income in real estate honestly it's very much an uphill battle because with traditional property investing the costs of entry are quite high but say you've already got some property investment you know if you are able to do that you can definitely generate.

Passive income from renting it out you know collecting rental payments and simply paying a property manager to manage it for you now yes you can also make money on paper through capital appreciation however us seeking passive income that's not really helpful for this scenario so overall that's property tough to get.

Into but certainly a popular method of investment for passive income but a far more accessible way to get on the passive income bandwagon is through shares when you hold shares in a company you can either make money by potentially selling the shares down the road for more than what you bought them for or you can make money through receiving.

Dividend income and if you're trying to build passive income in particular then obviously dividend income is what you're looking to focus on or is it we'll hold that thought for a second but yes to produce passive income you need regular reliable dividend payments you can do this by you know buying shares of.

A single company that pays a juicy dividend but a much better approach at least in my opinion not financial advice is to find a diversified investment structure that pays regular dividends for example you can buy market tracking etfs that instead of reinvesting dividends into the fund they just pay the earnings out to you for.

Example spy it's an s p 500 index fund simply pays out any dividends it receives to the funds investors but you could also make more you can also find more exotic etfs like hdv that tracks an index composed of high paying dividend companies and then it'll pay you a rough three three and a half percent annual dividend spread across.

Quarterly payments or you could look at say a listed investment company which particularly in australia aims to pay healthy regular fully frank dividends quite tax effective now these are all very simple ways to get started with reliable passive income all you need to do is fund a brokerage.

Account and just get started it also takes very little maintenance you just need to keep up to date with what investments you've made and check in to every now and again to see that your investments are healthy and that the dividend payment isn't slowly sucking the life out of the investment but that's about it and if i'm honest.

For most people this is going to be the most realistic way to start building passive income you know over time convert your hard-earned cash into more shares that will keep paying you regular dividends the only consideration i would make however is this and this is that hold that thought moment that i was talking.

About earlier you know if you're investing in shares do you right now actually need passive income because consider this you have two etfs that track the s p 500 one pays a three percent dividend and one doesn't the s p 500 gets on average about eight percent per year total if you're sucking out three percent each.

Year as income then that eight percent compounding machine is now a five percent compounding machine and this is the difference between ten thousand dollars left compounding for forty years at eight percent versus five percent there's a big difference so i would ask yourself do i need that passive income or is it better.

To leave the whole investment compounding over time and then switch my investments to create a passive income focused portfolio you know when the time is right but with that said generating passive income via investments is extremely common and honestly for most people it is the most realistic way to.

Really shift the needle towards financial freedom if you don't have much money to start with then the stock market is probably the easiest way to go but you know if you do have a sizeable chunk then that does open you up to the world of traditional property investing however to invest in property without a whole.

Lot of money you can also invest in something called a real estate investment trust this is basically just buying shares of an income generating property portfolio but that's a topic for another video so passive income from investing is that first umbrella and then the second umbrella after that is passive income.

From business activities this is the youtube channels the online courses the affiliate programs etc and i'm very lucky to be in a position where i've reasonably successfully implemented quite a few of these passive income methods both in investing and in business so in this i just i wanted to give you guys.

The honest truth i mean generating passive income from our business activities umbrella it's very hard it takes a lot of effort to start you know it's a slow grind it can feel impossible at times but if you succeed you can unlock insane financial potential and i do mean that.

But from my experience you really do have to put the work in it's not easy because at the end of the day whatever passive income stream you're trying to build you know you will inevitably encounter lots of competition so to succeed you need to offer more value than your competitors for example if you're trying to build a finance related.

Youtube channel if you make crappy videos that take you five minutes to put together they aren't entertaining and aren't well researched it's obvious you're not going to gain traction you know if you add amazon affiliate links to your blog post but you chuck the post together in five minutes and.

Really you just tell people to click the link every second sentence without really providing a whole lot of value it's not going to take off you need to provide value that's really the number one thing it's the number one thing in anything really but secondly the hard thing about this business style.

Passive income these passive income ventures is that to gain traction in most instances you really do need to build an audience you know if you made a carpentry video course that's absolutely epic who are you going to sell it to if you created some sort of digital.

Product that's just an awesome product how are you going to generate sales you know if you want to be an affiliate where are the clicks going to come from here on youtube we get paid per monetized playback you know i really do think that if you want to generate meaningful passive income you do need to build some sort of.

Audience yes you can make a course on skillshare yes you can make a once-off youtube video yes you can put your t-shirt designs on redbubble but if that's all you do you're essentially waiting for their business to provide you with traffic and as time goes on those avenues get more and more saturated making it less and.

Less likely that you actually create significant revenue for yourself so i know this video isn't you know like uh the traditional oh start a youtube channel and become an amazon affiliate make an online course but in all honesty i think these ideas that i'm talking about here are way way way more important when it actually.

Comes to growing your passive income so probably my number one tip to work towards building reliable passive income from business activities would be to build a network of people the passive income structure itself that's the easy bit it's finding sales that is difficult and if you look online at all the people who preach how.

Important passive income is and they make videos about how successful they are in generating passive income i'll pretty much guarantee you that they all have sizeable audiences this is the exact reason why gary vee tells businesses to be a media company first you know you're a media company and then you're a lawyer you're a content creator.

And then you own a lawn mowing business because when it comes to passive income streams from business activities the success is in your ability to passively generate sales if you have a passively structured income stream but you have to actively work to generate meaningful sales then it's not really passive income right.

Something to think about so anyway guys i hope you enjoyed this video as i said it's definitely not the usual passive income video i'll start a youtube channel ah sign up for amazon affiliates and you can do this and that but uh hopefully i really with this sort of video i just hope that it provides um.

A lot of value from from from you know me trying this for many many years so i really do think that for most people investments if you want to try your hand at passive income through business activities then you have to realize that the hard bit is the passive sales generation.

The actual business part is the easy step and it's really not passive if you have a passive income structured business but you have to actively work every single day to try and generate sales on that passively structured venture so anyway guys i hope this video was helpful i don't know it kind of felt.

Like a bit of a ramble um but hopefully it it helps you guys leave a like on it if you found it useful or if you enjoyed it subscribe to the channel if you're interested in seeing more videos from me and if you're interested in how i go about my investing strategies then you can check out prof which links are in the description below if you're.

Interested in short form new money content then head over and check out new money clips uh but that will just about do me for today guys thank you very much for watching i'll see you guys in the next video thanks again to sharesight for sponsoring this video so recently i finally decided to stop.

Being lazy and i imported all of my stock portfolios across into sharesight finally i should have done that a hell of a lot sooner so with sharesight you sign up you link your shareside account with your stock broker or you just add your positions manually and then from there sharesight tracks everything for you it tracks your capital gains it.

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Features are available for free but to be honest to get the best experience i would personally bite the bullet and upgrade to a paid plan honestly this is one of the few stock market related subscriptions that i would actually recommend it's very very helpful particularly when it comes to tax time anyway if you did.

Want to sign up simply use the referral link in the description or you can go to sharesight.com forward slash new money and sharesight will give you a special offer of four months free when you sign up to an annual plan so at least sign up for the free plan it will make your life easier but that's it for today guys thanks very much to sharesight for.

Sponsoring this content and i'll see you guys next time
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