While passive income streams can deliver consistent earnings without much effort on your part, they still require some work if you want them to consistently bring in money. You need to put in the time and effort necessary to set up a passive income stream. Once you have done so, it will also become necessary to manage it to some degree.
The specific ways in which you might do so will vary depending on the type of passive income streams that you create. For example, if you decide to try to earn passive income by self-publishing an ebook, you may need to implement a marketing campaign at some point to ensure that your sales don’t taper off. If you choose to earn extra money on the side by renting out a property on Airbnb or a similar platform, you will need to maintain the property and communicate with your tenants.
That said, the following tips will help most people with multiple passive income streams to manage them more effectively. If you’ve made the smart decision to earn passive income in more than one way, you should keep the following tips in mind:
There are apps for managing just about every aspect of your life right now, from your budget to fitness habits. Thus, it may come as no surprise to learn that there are also apps designed specifically to help people manage and track their passive income streams.
Along with helping you to track your earnings, these apps can contextualize your passive income by indicating how close you are to reaching your specific financial goals, such as making enough money to retire early. You’ll need to conduct research on a few of them to determine whether this type of product is suitable for your needs.
Regardless of the specific nature of your passive income streams, the odds are good that you could hire someone else to manage them for you.
For instance, you could hire someone to manage a rental property, a website through which you sell an ebook, and even your investment accounts. True, you will need to accept the fact that hiring someone will reduce your profits. However, some people believe that the freedom of not having to constantly manage their own passive income streams makes up for the financial losses. You’ll just need to make sure that you thoroughly vet all candidates if you decide to go this route.
Develop a Daily Routine
Monitoring your passive income streams doesn’t need to be a complicated process. You can dramatically simplify it by making certain basic habits a part of your daily life.
For example, if you’re earning passive income through stock market investments, you could simply check your portfolio every morning, the same way you would your email. If you’re selling something online, such as an ebook or an online course, you could check your sales numbers each morning.
Yes, sometimes you’ll need to take action. If you check your sales numbers and discover they’ve been much lower than usual for a few weeks, you’ll need to decide what you can do to correct the problem. If your investments aren’t delivering the returns that you expected, you’ll need to adjust your investment strategy. That said, if you take the time to develop a proper strategy when initially setting up your passive income streams, there’s a good chance that you’ll be able to sufficiently manage them by sticking to a few basic daily habits.
Create Separate Accounts
It can prove difficult to track passive income earnings if you deposit them into the same account into which you put earnings from your job. True, you could more closely review your banking history to determine how much money is coming from various specific sources, but that might not be something you have time to do on a regular basis.
Instead, you might want to consider setting up one or more separate accounts for your passive income earnings. You could also create one account for all of your passive income streams or individual accounts for each stream if you want to track them in even greater detail.
This won’t simply make tracking your earnings much easier. It could also help you to make the right decisions in regards to how to spend your passive income. While you’re free to use this money however you please, most passive income experts find that money you earn on the side delivers the most value when you allow it to accumulate, instead of simply spending it right away. If you mix passive income earnings with all of your other money, you’ll be more likely to spend it. You’ll probably be better off by keeping it separate.
Again, specific passive income strategies also require their own specific management strategies. In general, however, these tips can make staying on top of multiple passive income streams easier for everyone.