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3 Questions to Ask Before Building Passive Income

Hey, what’s up? It’s Jerad with Practically Passive, and today we’re going to talk about three questions to ask yourself before you pursue passive income revenue growth. I think the mindset that you need to be in is a mindset of giving. I’ve always been in a mindset of wanting to share and give and put information out there, and it’s always done me well. Because if I’m not in that mindset of sharing and putting information out there, I’m in a me-mindset, where I want to take. And passive income just doesn’t grow too well in that space. Of course, you can get maybe some quick growths or some quick payments or whatnot that happen, but if you’re not continually adding value, if you’re not putting useful things out there into the world, that tends to dry up pretty quickly.

1. What are your goals and objectives?

The first thing to ask yourself is what your goal and your objective is. Your goal of course, I think, is probably to build a passive income that you can use to replace your existing income. That’s been my goal in this year of 2018, is to replace my income that I make from my businesses with passive income. Not so that I can shut them down, but so that I can have more choice, so I can have more options. There’s a lot of good things that come from a traditional job if you have a decent job, and one of those things is healthcare and another thing is retirement. Those are two things that a lot of jobs provide that passive income isn’t going to naturally provide, you’ll have to set those up for yourself.

Now I’ve been self-employed since I was 20, so I haven’t paid into 401ks or I don’t have any of those things provided by a job. I have to actually do my own investing and saving for retirement. I have to provide myself with healthcare and all of that stuff, so it’s a little bit different. So there may be good reasons to hang onto a job, but in building passive income revenue streams the goal there is to alleviate that a little bit. If you’re constantly stressed out or in fear over your job, over changes in your industry and stuff like that, maybe you’re going to be laid off, or you have that fear, those aren’t going to be as big a fears if you have some more income coming in.

Like at the end of this year, my goal is to replace my income, that means that I don’t have to be so scared when it comes to the end of the month and I don’t have any new clients that I got during that month, or business has been a bit slow. I’ve definitely had months like that, and it is stressful, and it is a bit scary at times because I’ve got a family. I have a wife and kids and there’s lots of expenses and different things there. Though I know we can exist on a lot less than we do, it’s just still a stress and something that causes anxiety and I want to avoid that as much as I can.

I’ve taken the time to look at my life and say, okay, where are the different things in my life that cause the most stress and anxiety. And because I’m a sole provider to my household, to my family, a lot of it is wrapped up in that because it’s the most responsibility I’ve ever had in my life. As an adult, it can be a lot at times. So that is definitely one of my goals.

Now, your objective needs to be what you’re actually going to do, what you’re going to attempt to do, to get a passive income. Now, I’ve said in other videos and I’ll say it in this one, it’s best to have passive income revenue streams from different locations. If all of your money was coming from one location, if that location … if something dries up there, if they go out of business, if they sell to another company, or decide not to have an affiliate program anymore, then you’re all out of passive income. All of a sudden that’s shut off, and you don’t want that to happen.

So you need to look at how you can spread that out, and those are things that I’m going to be teaching in future videos. How did I build a YouTube channel up to the point where I was earning $1200 to $1500 a month just from that one YouTube channel? How, at the same time, did I build up another YouTube channel that’s making $500 to $600 per month? All the while getting $500 to $1,000 from Amazon Affiliates every month, and all of these other little passive income revenue streams that I have coming in. How did all of those come to be and how did I build those? I want to show you all of that stuff, and I will do that in future videos, so make sure to put in your email address on the website, practicallypassive.com. And of course, subscribe to the YouTube channel because those are going to be the two places I’m delivering the most content and the most value for you.

Think about what your objective is, what are you going to be building, and why.

2. What Value Can I Provide?

Now, like I said in one of the first videos, the revenue is in the value. When you’re building passive income revenue streams, you’re putting information out there, you’re sharing things with people, you’re creating things to be sold or whatnot, there has to be value in those, there has to be something that the other person is getting. If you’re coming at it thinking me, me, me, I’m going to build this, I’m going to get paid, that’s the wrong mindset to have. You need to be thinking about the problems and the challenges that the other person has on the other end of this.

If you’re creating video content like I am, you have to be thinking about what is going on in their head, what’s the problem, what’s the thing that they need to overcome or achieve and how can you produce content around that. If you’re thinking about a product that you could put out, like an informational product, that has to have enough value to solve the problem so that the other person would decide to actually purchase that. In thinking about what you’re going to do, make sure that you are leading with value, that you’re thinking about what is the value that I can provide.

3. Be In It For The Long Haul

And then the third thing, which I think is just as important, if not more important, is to be in it for the long haul. If you’re not in this for the long haul you’re never going to see enough growth to have it really blip the needle, when it comes to your income. Now, everything that I build didn’t happen overnight, it took a lot of time. Some of these channels, these YouTube channels that I have are several years old. I’ve been putting content in them for a long time. It’s just that in the last year here have I really been focusing on it and thinking about it as a thing that drives revenue towards me.

In the past, I’ve always just put up videos when I found them useful and just to share information, to put it out there because I found it fun and interesting. I was adding value but I wasn’t looking at it as a way that I can actually earn income. Then when I did, it was cool if I got $100 here, $100 there, that was great, but now that I’m really wanting to take it serious and make it replace my existing income I have to be in it for the long haul.

I can’t be wishy-washy, I can’t jump in from time to time, I can’t not reply to people’s comments and stuff like that. I have to be active. I have to not only show up and be there, but I have to play in that space as well. I have to be involved in that community, and if I’m not, people are going to go elsewhere and they’re going to find somebody that is. You have to be in it for the long haul, there is no quick rich scheme here. There’s no way to build this overnight, it takes time and it takes effort. And it’s not something that’s going to happen immediately, so you need to have persistence also.

So those are three things that I think are extremely important when considering to get into passive income. Just like you show up for work every single day and do well and are consistent so that you can get a promotion within a year or so, you definitely need to have that same approach when it comes to building passive income revenue streams. You need to show up as often as possible, you need to provide value, you need to do a good job. You can’t give it 50%, you have to give it 100 or 100 plus percent so that it actually starts to build something for you that can turn into something that replaces your existing income.

Like I said before, subscribe to the YouTube channel so that you get updates when new videos come out. It’s the best place to consume the video content. And, of course, head on over to practicallypassive.com and put in your email address so that I can send you news, information and updates whenever I find it extremely useful and relevant. So make sure to do that. Thanks so much and I hope to see you in the next one.

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