The term “passive income” has become ubiquitous in the past decade. Just like the ever-controversial “staycation”, “passive income” is used to mean a few different things – but on the whole, what we mean when we say “passive income” is an income stream that requires little effort and maximum profit. There’s no such thing as an effort-free income, but a passive income is one that requires initial effort in setting up, followed up by minimal maintenance as your money rolls in.
When you are a busy parent of kids of any age, making money is constantly on your mind. That’s why so many parents have full time jobs as well as side-hustles: it pays the bills more efficiently, and allows them to save for their family’s future. Parents are turning to side-hustles that can be defined as “passive incomes”, and in today’s blog, we’re going to explore the dos and don’ts of making a passive income as a parent.
The Dos of Earning a Passive Income as a Parent
Passive income is commonly misconstrued as something that requires no effort whatsoever. We know this isn’t true – so what is required if you want to succeed at earning a passive income?
Let’s take a look at the dos of earning a passive income as a parent…
- DO find a passive income source that you can maintain online.
One of the main reasons so many parents turn to passive income for financial support is that it is usually a flexible endeavour. Online passive income streams include trading, such as CFD trading; blogging (hi!); gaming and online consulting services. By finding a passive income source that you can maintain online, you can ultimately give yourself and your family a more flexible lifestyle. You can maintain this income from anywhere in the world, or even on the go.
- DO spend time building the foundations of what will become a passive income stream.
Passive income doesn’t just start happening overnight. You need to build the foundations of expertise and knowledge in whatever industry you’re working in, in order to start letting the money roll in on-schedule. For example, if you want to start a blog in order to earn money, you need to do your research and brush up on your writing skills. By putting the time in at the beginning, you will be setting yourself up for an easier ride in the future.
The Don’ts of Earning A Passive Income as a Parent
- DON’T rely too heavily on your passive income.
Passive income is designed to top up your main source of income, rather than being your main income in itself. Unless you’re Warren Buffet, you can’t sit back and watch your money multiply on its own. There are risks involved in passive income, especially in the more volatile areas such as trading or betting. Don’t put your family in a precarious situation by relying heavily on your passive income.
Earning a passive income is a great way to supplement your finances as a busy parent. Make sure you consider these dos and don’ts before you get going!