Passive income is the dream, right? Arrange your life and finances so that money consistently flows into your bank account, regardless of your employment status or energy spent hustling for gigs. I don’t mind doing hourly work as long as the work is tolerable, the clients are nice, and the rate is fair, but passive income certainly reduces my stress levels.
I currently have nine sources of passive and semi-passive income:
- book royalties
- music sales royalties
- music publishing royalties
- blog affiliate income
- Patreon
- service contracts
- equity dividends
- interest
- capital gains
Some of these sources contribute negligibly, less than $50 in a month, but in total my passive income averages about $3000 a month. Not enough to cover my current lifestyle (especially since 100% of my dividend and capital gains income are reinvested) but enough to provide a significant financial buffer. Even when I have a slow month in terms of consulting hours, the passive income almost guarantees that my net worth keeps growing.