We could all use some beauty rest right now. (I’m talking heavenly lavender sleep oils. Thank you Westin), a delectable rose candle, and some hard-core calm). As glorious as that sounds, how much better would it feel if while you are dreaming of an island far, far, far away, you are making money while you sleep?
Picture this . . . wind in your hair, coconut drink with a tiny fuchsia umbrella, and golden tan snoozing on a cabana swing at the St. Regis Punta Mita. Now for the best part, while you are there, you aren’t worried about the work you are missing or how much money this dream (literally) getaway is costing you because you are making money while you sleep.
Ohhhh yesssss. . . dive in! The water’s just fine!
Too good to be true, you may say? What if “too good to be true” was only “too good” if you didn’t believe it was possible for you?
There are several ways to get paid while you sleep. One of my favorite combinations is when you combine the word passive with income. Passive income is sometimes intertwined with: residual income. Swirl those two words around in your mouth a bit and see how that feels? I love these words!
Another way to look at passive income is to imagine continuously getting paid on something long after the work it took to create it is done.
• Buy a rental property, pay it off, and rent it out every month, repeatedly bringing in a passive or ongoing income. (Tip: Choose renters who actually pay the rent)
• Write a pulse-pounding, spine-chilling novel, screenplay, or a chart-topping song. The book is written one time, but every time it’s sold, the writer gets paid again and again and again. Did I say again? See why residual and income are a match made in heaven?? The writer doesn’t have to re-write the song every time it’s played to get paid again. The action is done once, and the income is reoccurring. Actors get paid this way too! I shot That 70’s Show years ago, but still, get paid every time someone watches the episode, Donna Dates A Kelso. This episode also features Luke Wilson – and let’s face it – he’s a bit dreamy.
• Sell insurance. Insurance policies are sold once, but every time the client pays the premium, the insurance agent gets paid. Yep, that’s right, month after month.
• Put your money to work: Whether it’s a significant amount of money sitting in the bank earning interest every month or you invested in the perfect dividend stock. Putting money to work is bankable (pun intended). The challenge is that you often need to have a LOT of money in that nest egg to nest.
• Get paid for referrals as an affiliate or brand ambassador. (More on this in my previous article: 4 Ways To Choose That Perfect Financial Side Gig You post a link or talk about a product you like, and when the product is purchased, you get paid.
Affiliate models or referral systems can be especially fun when they include getting paid on a product, not just once, but every time the client pays the bill.
For example: let’s say you referred someone to your favorite cybersecurity product. The product is something people pay for every month, like identity theft protection, a security system, or anti-virus software. You could make the referral one time and get paid every time they pay their bill. If you refer enough customers, you could see how this could begin to bring in enough money to cover some of your household bills every month. (I do love the sound of mailbox money hitting my account every month for something I did two years ago – don’t you??)
There are also plenty of options out there that can help you generate recurring or residual income not only on your actions but also on leveraging others’ efforts. (Stay tuned – more on this next time).
Time is a precious commodity. There have been real challenges from everyone quarantined, but I’ve also heard how much people have loved the quality time they’ve enjoyed with family. We know your dogs have loved having you home, maybe not the cats so much!
Every moment we have in life is precious, and when you can earn a way that continues to pay you, you can get some of your time back to spend it how you choose. Would you allocate the extra time to your family, church, or a passionate cause?
What if you were able to make enough residual income that it enabled you to be a little pickier about how much you work? What if you could take off a little more, or make sure you never miss your kid’s games because you had a supplemental income allowing you more flexibility?
What if you knew every month your car payment, healthcare, or kid’s private school was covered by an income you built over time that paid you residually? What if you were saving up for your post-COVID19 dream wedding at the Montage Palmetto Bluff (Justin Bieber and yours truly got married there – not to each other…obviously!) Could it take the pressure off you just enough that you could make some new choices in your life?
If the amount is sufficient, it can free up a person’s time to do other things besides work. See more on this at Investopedia.
Imagine creating enough passive income that one day you can be voluntarily quarantined (maybe on an island though) but still making the equivalent of what you make at your job or business. Does this happen for everyone? Of course not. Any substantial or even extra income takes time and effort, and not everyone is willing to put in the work to have that kind of reward.
One of my favorite quotes is from Jerry Rice.
“Today I will do what others won’t, so tomorrow I will do what others can’t.
No matter where you are on your financial journey, always remember, grateful is a great place to start. You can read another of my business-building articles, here.