As we continue further into the other aspects of creating passive income streams, let’s continue by having you set your passive income goal today – I’d like for you to set a goal for what you’d like to achieve here.
Question is, why are you here reading this series?
Is it purely to entertain yourself?
Are you looking to learn something that you might apply later in life?
…or are you actually thinking and wanting to create at least one passive income stream this year?
Allow me to recommend a simple small goal for beginners – by the time you finish reading this post, set a clear goal for what you want to gain from this series. Do not close your browser window or move to something else until you’ve set a clear and specific passive income goal today.
Don’t give excuses, don’t procrastinate.
No saying “I’ll think about it…later.”
It doesn’t matter whatever reason you come up with – it’d not make sense to not set a passive income goal.
Moving on, if you desire to create a new stream of passive income, make sure your goal includes:
- How much you want to earn per month
- How long you’d expect that stream to last
- How long you’d take before you start receiving income from that stream
Note: this isn’t your greatest goal here, it’s your first, small goal (or your next goal, if you’ve done this before) stream of passive income. If you have something in mind that doesn’t fit with the above, that’s okay too – set whatever goal you think and feel is best for you. At the end of the year, we will all see how our goals work out.
The main focus is to set a goal that motivating, believable yet challenging at the same time.
Don’t get lazy or too comfortable here – set a passive income goal. If it’s daunting, no worries, goal setting is really a skill that gets better with practice. If you stumble a little in the beginning by setting too high a goal – you wont believe it nor achieve it. If you set an unrealistic deadline, you’ll miss it. How do you know what’s realistic? Set the goal first, and fine tune as you go along.
Our goals don’t have to be perfect. That’s not the point. The point is to set the goal to set a desired destination to move towards, seriously. And the main goal is to get good at setting and achieving goals….which includes risking making mistakes from time to time.
Table Of Contents
MY FIRST PASSIVE INCOME STREAMS
Other than earning the interests on my business and personal savings accounts, my first real experience with passive income was when I started managing sub-contracting rehabilitative services to clients beginning 2009.
It was a simple “I’ve too much work, let’s outsource some” approach. We did the marketing and business building from 2008, and the work that streamed in year after year helped to grow the business organically.
The program didn’t do particularly well – we had the customers, we had the contract staff, but there was one main challenge – our customers wanted just us. And we had a lot of challenges with the contract staff who wasn’t happy that we earned management money that we charged the company for managing the staff.
There was a lot to do in between to communicate the needs of the hiring company to the hired contract staff, plus administrative and logistical paperwork. On average we earned about $300 per month from this. We don’t do much in terms of marketing, other than what we had done before, and the relationships that we had built. Once it was running, it was the periodic management that was done. The projects’ durations can be between 1 – 12 months per project.
That was back in 2009, and today, we have more sophisticated ways of earning by delivering outstanding physiotherapy services to clients. In 2011 we decided to stop all crowdsourcing/outsourcing work for rehabilitative services as it was a “too much work, too little returns” problem – we were earning so much more from our other projects and services within Urbanrehab Pte Ltd that I didn’t want to divide my time for it.
On average, I would say that we made an average of $10K of passive income in the span of 2 years.
Is it good?
I don’t think so – we would have easily made much more than that just running our other projects, in fact, we were earning more than that from contract work with other companies concurrently.
The point of creating your first (or next) income stream is not the “get” that big payout immediately. The point is to learn how to create passive income streams, so you get better at it. Then, you can create bigger and better streams as your skill and experience increases. Don’t expect that your first passive stream project to be your master piece that will allow you to “fire your boss tomorrow”.
Today, it has become much easier for me to create new streams of active and passive income with a lot less effort, time and planning that I had to in 2009-2011. Why I can do this is because I’ve put in the time, effort and planning to learn how to do so, and over time, I still continue to refine my skills.
You know, it doesn’t matter how big or small your streams are in the beginning.
If you can do even a $10 per month, I think that’s super already. Plus, it’s so much easier to do this today than then – you will have it much easier. Plus, you will have the wonderful Google and me to coach you along the way. I didn’t have anyone to help me, and most of the people in my life then strongly recommended me to go back to my previous job. =D
Set goals, but be patient. This is a skill that will benefit you and your loved ones for your whole life, even if you work on it for a decade.
MY PASSIVE INCOME GOAL
My own passive income goal, is a little of a stretch goal for me.
To keep things simple, I’ll set a relatively conservative goal:
I create a new stream of passive income by March 2013, that generates at least $2,000 net profit per month on average, for a minimum of 2 years.
That’d mean that it’d make $48,000 over the next two years, per project. Though it’s a “stretch”, but it’s a very conservative and achievable goal for us because I’ve done my research, computed my numbers for this project. I want to keep the goal fairly basic, so I can focus on the teaching part.
Such clear goals help me to start thinking about “how can I do it?” – making me crack my brains to discover how. It also helps me to clearly rule out taking on more work personally (to be honest, there’s only so much time I have on my hands, if I keep taking patients, there’s always a cap).
I likely might sell more equipment or items, but it may not be the full or main goal, but I’m setting something up to generate monthly income for at least 2 years.
YOUR TURN: SET YOUR PASSIVE INCOME GOAL
The focus to goal setting is really to get into the habit of setting goals and achieving them – it’s not about setting super aggressive goals that cannot be reached. You can always set bigger goals once you reached to original ones.
As long as the goal is motivating for you and helps get you moving, then I’d say and think it’s a good goal.
A suggestion for you would be to set a goal like this:
I create a new stream of passive income by March 31, 2013, that generates at least $100 per month on average and endures for a minimum of 2 years.
It’s not that tough, it’s a very achievable goal. You don’t need a website for this as well. Some people will find this very tough, or very easy. Feel free to adjust to something that’s motivating yet challenging for you that is achievable.
If you can achieve the above mentioned goal, you’ll put an additional $1200 in your pocket every year, but it’s not really about the amount. The real focus is learning to create that $100 per month stream of passive income. Once you do it once, you can do it again and again and again.
Once you learn how to build that $100 per month passive income stream – by really and actually doing it, not just by thinking or reading about it – sooner or later it’d become easy for you, and then you can start moving onto bigger systems and income streams. Instead of making that $1200 in a year, you can make then in a month, or a week, or a day. As you continue to develop your skill and knowledge in this area, you’ll learn and find out how to earn larger and larger sums with lesser streams, time and effort.
Today I’m pretty comfortable with passive incomes that earn around $1000 per month. Once you get the hang of it, you might find it fun and challenging to keep thinking and creating streams of income with different approaches.
If you’re looking for long term financial security – it’s not in the money nor is it in the streams of income. It’s in your knowledge and skills. Today I can lose all my business or property, my assets, yet I’ll be able to recreate the same level of financial abundance in a shorter amount of time simply because I already know how to do it.
This the same that I want for you as well, so that you too have this option. You don’t have to worry about paying your bills or looking for a job. You can create more streams of income.
DO IT RIGHT NOW
You’re not finished with this post until you’ve set your goals and written it down. In fact, if you hadn’t done it, do it right now. Then post it up in public, facebook, your home, but in a place where people will support and help you.
This will help you to succeed, and you’ll inspire others to develop this skill too.
If, on the other hand, you anticipate generally negative responses if you share your goal publicly, then you may have different challenges to address – your life may be filled with too many incompatible people. Too much social brakes and drags that weigh you down. If you cant win them over, block them. Unfriend them. Drop them. Such people will likely get worse when you succeed, think jealousy, sarcasm, pettiness etc. Better to make the decision now and fill your life with positive support.
Plan to succeed. Prepare to succeed. Expect to succeed.
Believe and know that once you’ve set this goal, you’re going to achieve it. And if you’re going to achieve it, then start getting rid of anything from your life that will get in the way of this goal. Whoever or whatever that cant handle it, drop it/them.
This will create more space to invite better relationships with people who will actually add to your life.
Drop the deadweights, let them sink on their own.
I’m the founder and writer here at NigelChua.com; as well as serial entrepreneur, therapy business entrepreneur, digital entrepreneur, investor and also happy husband, father and Christian.
Started and sold off a business for 7-figures; built another 7-figure one and growing it further, plus building/investing into other businesses and investments as well as advisory works.
Nowadays I share and teach entrepreneurship, financial independence, retiring early as well as building and living a life you love.
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