Set Your Passive Income Goal
04-01 Set Your Passive Income Goal
As we transition into the how-to aspect of passive income creation, let’s begin by having you set a goal for what you want to accomplish here.
Why are you reading this series? Is it just for entertainment sake? Do you hope to learn something that you might apply later? Or do you actually want to create at least one new stream of passive income this year?
Let me suggest a simple meta-goal for starters: By the time you’re done reading this section, set a clear goal for what you want to gain from this information.
Do not move on to something else until you’ve set a clear and specific passive income goal.
No feeble excuses. No vacillating. No “I will think about it later” bull-shit. And please no lame ass “I want more money” vague answers.
Whatever excuse you come up with as to why you can’t set a clear goal right now, we both know it’s stupid, so let’s not even go there.
Not setting a goal is a waste of time.
If your actual desire is to create a new stream of passive income, then let’s make sure your goal includes 3 aspects:
1. how much money you want to earn per month from your next stream of passive income (specific pound amount)
2. how long you expect that stream to last (number of years)
3. your deadline for receiving your first month’s income from that stream
This isn’t your ultimate goal we’re talking about here. It’s the goal for your first (or your next, if you’ve done this before) stream of passive income.
If you have something different in mind that doesn’t really fit the parameters above, then by all means set the goal you feel is best for you. At the end of the year, when other people are enjoying their new streams of passive income, you can see how your own goal worked out.
The idea is to set a goal that’s motivating but that’s also believable for you.
If you’re telling yourself that you can’t earn any passive income because it’s too much for you, then your imagination needs work. You could put £100 in a free savings account and earn a trickle of passive income each year for decades. So don’t be lazy here. Don’t let yourself off the hook. Set a goal.
Goal setting is a skill that takes practice. If you fumble this initially and set a goal that’s too big and unbelievable for you, you won’t achieve it. If you set an unrealistic deadline, you’ll blow the deadline. How do you know what’s realistic? You calibrate with practice, just like you learned to walk and talk.
I don’t expect your goal to be perfect. That isn’t the point. The goal is just the first step to get you moving forward and taking this seriously. The ultimate goal is to get good at setting and achieving your goals. This means you have to risk making mistakes in the beginning.
As the saying goes, There never was a winner who wasn’t at some point a beginner.
So begin by setting a goal.
04-02 My First Passive Income Stream
Other than earning interest on my savings account, my first real experience with long-term passive income was when I wrote and self-published a How To Booklet for publishing a community magazine.
The booklet didn’t sell particularly well. We didn’t have web sites back then, I sold a few copies though, each booklet sold for £5, and cost 35p to make.
On average I earned about £75 per month from this booklet. I didn’t do much in terms of marketing, a simple line ad in Bargain Pages (Classified Ad’s publication), which was a one-time effort. Once the booklet started selling, I moved on to other projects.
A year after I released it, the booklet was still earning about £75 per month.
So a booklet that took about a week to write, sold month on month, with little to no extra work on my part, all I had to do was print off a few copies every now and then.
I should have expanded on this passive income idea by creating more publications - unfortunately, life and a job turned me into a wage slave.
04-03 Taking The Long View
Is £6000 spread out over 10 years a good pay cheque for 6 months of work? No, you could easily have earned more money working at a job. The point of creating your first passive income stream isn’t to achieve that big pay-out right away. The point is to learn how to create passive income streams, so you can get better at it. Then you can create bigger streams as your skills increase.
Don’t expect your first effort to be your masterpiece.
Today I can create new streams of passive income with a lot less effort than I had to exert say five years ago. The reason I can do this is because I put in the time to learn how to do this, and I’ve continued to refine my skills over time.
Don’t worry about how big your streams are in the beginning. If you can create a £50 per month passive income stream this year, I think that’s great. And it’s so much easier to do this today than it was back in the day, when I first started, so you have it much easier than I did. Your smart phone is probably 1000 times more powerful than the computer I used back then.
You also have me showing you the ropes along the way. I didn’t have anyone helping me at the time. Sometimes the people in my life suggested that I should get a job. They don’t say that anymore though.
Do set goals, but be patient with your progress. This is a skill that will benefit your whole life. Even if you work on this for 10 years, there will still be plenty more to learn.
04-04 Your Passive Income Goal
The key to goal setting is to get into the habit of setting and achieving goals. It’s not to set aggressive targets that you never reach. You can always set a bigger goal later once you achieve the original goal.
Sometimes I’ve set a big goal with a 2-month deadline, and I achieved it during the first week or two. So I celebrated that. Then I set a new goal with a new deadline.
As long as the goal seems motivating to you and it helps you get into action, then I’d say it is a good goal for you.
My suggestion would be to set a goal something like this:
I create a new stream of passive income by December 31, 2020, that generates at least £100 per month on average and endures for a minimum of 5 years.
I think this is a very achievable goal for most people. You don’t need your own website to earn this much.
Now some people will blow this goal out of the water; it will be way too easy for them.
Other people will find it a serious challenge. Feel free to adjust the goal to something that feels good to you.
If you were to achieve the goal above, you’d put at least £6K in your pocket, but it’s not the amount that matters. The real aim is for you to learn how to create a £100 per month stream of passive income. Once you learn how to do that, you can surely do it again. Do it 10 times, and you’ll earn £60K passively.
Once you learn how to earn £100 per month in passive income — by actually doing it, not by reading about it — then it’s not that difficult to learn to create bigger streams. So instead of creating 10 streams that collectively generate £60K, you might learn how to earn that much with just one or two streams.
As you continue to develop your skills in this area, you’ll discover how to earn larger sums with fewer streams and less effort. If one stream dies, you’ll also know how to replace it with a new one.
Once you get the hang of this, I think you’ll find it a fun challenge to create new streams of income and to experiment with different approaches.
If you want more long-term financial security, you won’t find it in the money or even in the streams of passive income. You’ll find it in building your own knowledge and skills. You can take away all my streams of income, my website, my assets, etc., and I’ll be able to recreate the same level of financial abundance in a relatively short period of time because I already know how to do it.
This is what I want for you as well. I want you to learn how to do this, so then you’ll always have that option available. This know-how will relieve you of much financial pressure. You won’t have to scramble to get a job to pay your bills. You can just create more passive income streams if you want more money.
04-05 Do It Now
You are NOT done reading this section until you’ve set your goal and have written it down. If you haven’t done this yet, do it right now.
Once you’ve done that, I encourage you to also post your goal in public — If you can do this in a place where you feel that people will support and encourage you.
I’m sharing my goal publicly since I expect that many people will want me to succeed since they’ll benefit from the educational value.
Watching me try and fail wouldn’t make for a very interesting challenge. I’ve also seen plenty of positive feedback popping up already, so I know that there’s a lot of interest in this challenge.
If you expect mostly positive support, then share your goal on your blog, your Facebook page, etc. Add some accountability, this can help motivate you to succeed, and you’ll inspire others to develop this skill too.
If, on the other hand, you anticipate a largely negative response if you share your goal publicly, then you have a different challenge to address. This means your life is filled with too many incompatible people. You have too much social drag. These people are only going to get in your way, so if you don’t think you can win them over, then drop them, block them, unfriend them, etc.
If other people have a problem with your setting a goal in this area, what are they going to be like when you actually succeed? They’ll probably get worse, and then you’ll have to deal with problems like pettiness, jealousy, sarcasm, neediness, and more.
Better to cut them out now and fill your life with positive support. Let them learn from your example… from a distance.
Prepare to succeed. Expect to succeed. Know that once you’ve set this goal, you’re going to achieve it. And if you’re going to achieve it, then you need to start shedding from your life whatever would otherwise get in the way of your goal. Whoever can’t handle it, drop them.
This will create space to invite much better relationships with people who will support you on this path. The dead weight must be shed, so that positive support can come through.
Our goal is to find multiple income streams, and the more passive the better.