Compound Your Passive Income Online
71In the month of July, I was kind of down thinking about my online income. There were events happening at work that were very stressful and causing a lot of mental, emotional and physical strain. Simply put, I was burned out. I began to question why I was spending my free time trying to develop a passive income stream through online writing. Why should I spend several hours each week trying to earn 20 or 30 extra dollars with AdSense? Why should I bother to write a bunch of articles that few people are reading? Why should I struggle to build links and drive traffic to my Hubs? It just seemed like too much effort for too little payout.
I know that I am not the only one who feels this way from time to time. But I also know that when I am feeling this way, it can be pretty lonely. So, I really didn’t do a whole lot of writing or linking or posting online during the month of July. It turned out that the break has done me a lot of good. It gave me time to think about the effort that I am expending. Despite doing essentially nothing for the month, I was still able to earn just over $58 of totally passive income. Compare that to last July when I earned $7.41 and the possibilities become slightly more obvious.
Then I read a blog post about thinking longer term. This got me to thinking about what would happen if my passive income grew by just 5% each month. So, I did the math starting with $30 in the month of July 2010 and increased that amount by 5% each month. Selected results can be seen in the table below:
Effects of Compounded Passive Income
Month
| Earnings
|
|---|---|
July 2010
| $30.00
|
July 2011
| $53.87
|
July 2012
| $96.75
|
July 2013
| $173.75
|
July 2014
| $312.03
|
July 2015
| $560.37
|
July 2016
| $1006.35
|
In just 6 short years, I could be making over $1000 per month. That would be a substantial amount of passive income that would help pay off credit cards or provide for a nice trip each year. It would certainly bring me that much closer to financial freedom.
The other thing that I think this exercise does is offer plenty of encouragement and motivation. I can see that getting to $54 monthly earnings by next July is actually easily achievable since I really earned $58 last month. So you could say that I am a year ahead of schedule. In reality, $97 by July 2012 also seems rather doable. This is so motivating to keep writing and working on links to see if I can just get a little bit of growth (only 5%!) each and every month. It shows me how just a little can turn out to be a lot with the effects of compounding.
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CommentsLoading...
It is a good plan. Your hubs is good, but you look not promote it much, start use your income from Google AdSense to hired a SEO guy to link and submit the best hubs to get more extra money. This will help your plan reduce the time to reach $1000 per months.
It is certainly a consideration to hire outside help in creating links and marketing the better Hubs.
Thanks, as always, for a helpful reminder. For anyone who wants to make serious money from writing, it requires spending more energy marketing than writing. For everyone else, slow but steady builds up impressive results.
allpurpose,
Glad to be of service. Although I don't have a ton of time, I am finding that continuing to plug away can lead to substantial income over time. In the end, all of the efforts will add up.
Keep it up Kidgas, you come up with some good stuff!
Thanks so much. I certainly plan on continuing to write useful and inspiring Hubs.
Good article and stay motivated..I have been where you are and just recently got back into this. I took 6 months off from writing, SEO, and just about everything. I am now rejuvenated and enjoying the process again. I don't think you need to outsource you SEO, just look for specific topics with highly relevant keywords. Make sure you are specific and Google competition is manageable. Keep us updated on how your progress
Nick,
Thanks for your encouraging comment. Glad that you are back and motivated, not to mention enjoying it again. I think that is important in order to keep going. You have to enjoy what you do otherwise it is really easy to get burned out.
Kidgas, I think of the building of an income online in a similar fashion as other investments. And frankly, your growth potential is in many ways directly in your two hands.
Depending on your volume of production, and promotion, you can build an income much faster than 5% per month. Thinking long term, but then taking the production one day at a time, will make it much less overwhelming, and breaks it down so you avoid getting into that depression state.
Glad to see you have broken out of your funk, and are ready to get back in the game. :)
@lake,
I agree 100% that thinking of online income building as an investment is a good idea. It is definitely possible to build faster than 5%. I am getting close to being a year ahead of schedule in AdSense alone based upon my table here.
Looking out longer term like I did above definitely offers a more encouraging perspective. I am happy to be out of the funk for sure. But, I know that there will be times in the future that will be difficult again. Just have to remember to keep at it.
Another great hub from you. Although I got 0.9$ yesterday. But I still wait my third check. Very inspiring. I learn much from you. Thank you very much.
Prasetio
Thanks much. Congrats on getting those first two checks. The first is always the hardest.
compounding interest.. great stats as usual that get ya thinking..now if I could just get motivated to increase my hub writing 5% each month.. i did jump from 2 per month for thr first 8 moinths to 5 this month , so i guess i'm getting there, slowly but surely. I'll be lucky to hit 30 hubs total by years end. LOL
mel,
That's good that you have increased your Hubs. Over time, your traffic and earnings should follow. Best of luck with the writing.
Hello, hello, 21 months ago
It is not a bad outlook nor arithnetic. Thank you for your hub.