Earning a truly passive income is the end goal of the vast majority of Digital Nomads and you could very easily consider it to be an absolutely ideal situation for funding your travelling adventures.
What is the definition of passive income? Simple: it means that you earn money without having to work. That doesn’t mean you haven’t worked for it though – it just means you’ve sowed your seeds so that you can profit long into the future.
In other words, you invest some time and money into setting up a business model that is capable of ‘running itself’ and from then on, you reap the benefits. You might even continue to work on the business model in your spare time to scale it further, or to keep it going, but the point is that you don’t have to actively trade your time for money anymore. Once you have a passive business model, you can literally continue to earn money while you’re sleeping.
Working online increases your freedom to travel and visit new places because it allows you to choose how and when you work. But if you’re providing a service to a client, then that’s still not true freedom. At the end of the day, if you take time off, you lose money. And you can still upset your clients and end up losing your means of income. But with passive income, you really do get to experience true freedom.
Now you can choose to take the entire day off or to refrain from working for the next week even and there will be no repercussions. Want to spend more time on the beach? You can! Want to go for a stroll and feel the sun on your face? You bet! Want to go travelling and visit another City? Play a computer game? Work on a personal project that means a lot to you? Stay in bed?
I think you’re starting to get the picture…
Using Passive Income to Become Truly Wealthy
But for many people, passive income goes further than this. For many people, passive income isn’t necessarily about working less and travelling more, but rather it is about increasing their income. More so than any other type of business, a passive income model will allow you to scale. Why? Because if you start earning money that doesn’t require your active input, then there’s no reason that you can’t use your free time to set up multiple passive income streams.
Each time you do this, you increase your potential earnings severalfold. You can also often increase the earning potential of a passive income model simply by investing more money into it in order to scale it up directly. And the more separate passive income businesses you create, the more resilient your business will become. With ten separate businesses, all running at once, you can consider your income very safe.
It would take multiple businesses all to fail at the same time for you to have any threat of serious financial strain. You can use a passive income to set up multiple businesses then and you can use a passive income model to fund other business plans and thereby ‘bootstrap’ your larger ambitions and projects.
What it’s Like to Have Multiple Passive Income Streams
I’m going to break from convention for a moment and share with you some personal experiences of passive income. One was my friend. Being a very forward-thinking guy, he invested a huge amount of time into writing content for a new travel website he was developing when he finished college in the early 2000s. By the end of one long summer, he’d written hundreds of thousands of words and was able to fill his new travel blog with good content that Google ranked.
He ended up landing the number one spot for one of the most popular travel search terms on the web and then used this position in order to attract a huge amount of traffic to his travel website. Better yet, he used that position to sell travel affiliate products, such as hotel and flight bookings, car hire etc. many of which offered recurring income. In short, he was earning nearly $100,000 per month by the end of it while not having to put in any subsequent work – except a little maintenance here and there.
Passive Income Ideas
- Invest in the stock market
- Invest in a business
- Become a website blogger
- Create a YouTube channel
- Teach online courses
- Invest in property and real estate
- Design and sell tee shirts online via Etsy etc.
- Become a social media influencer
- Online affiliate marketing
- Create an online business directory that is fully automated
- Create and sell an eBook
- Sell photos
The list of passive income ideas is endless if you adopt the right mindset. There are countless ways you can create a truly passive income and all of them allow you to travel and live the lifestyle you want.
10 Passive Income Ideas to Fund Your Travelling
