What is The Actively Strategic Side of Passive Income?

The concept of passive income has gained significant traction. At the moment, one in five US households is able to generate some level of passive income. Additionally, for a lot of them, passive income comes through dividends or rental properties, or interests. In rare cases, passive income can also be associated with a business model. 

Nevertheless, for many who are still dreaming of building a passive income strategy, it is important to understand that this type of income is not always as passive as one might expect. Even if you choose to build an investment portfolio, this will still require some level of management and decision-making, which means there is no such thing as an income-generating model that makes money without requiring any work. 

Every passive income has an active strategic side. 

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Finding the right side hustle

Truth be told, the typical American household may not be in a position to invest money right now. With living costs going up and wages failing to follow, we may not have enough spare capital to invest. This is why a side hustle may be your best option. 

Imagine, for example, that you decide to start a blog. A blog by itself may not be able to create an income. But what if you monetize it with online ads and sponsored posts? Your blog may still require hard work in terms of writing posts and building an audience. But the passive income it generates will develop proportionally.  

Ideally, the right side hustle for your passive income strategy will depend on how much time and effort you can afford to invest in it. That is why the best passive income side hustles are hobbies that can grow with you, such as blogging. 

Leveraging the right tools

One of the most actively strategic aspects of a passive income side hustle is the digital tools you choose to use. In order to carry on making money passively, aka while you are not working at it, your side hustle should be in the digital sphere. You can set up an online business, for instance, where customers can buy digital content from you. All you need is to find the right turnkey payment solutions that can process payments and integrate with your business operations to send the content automatically. 

Similarly, another great digital business idea is dropshipping, which lets you sell online products without needing to store, or process any of the products yourself. Here again, the right digital tools will capture payments and trigger the rest of the operations. 

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Outsourcing to experts

Automated and intelligent tools can do a lot to streamline the process. Yet, they do not replace experts that can keep your side hustle ticking. 

When it comes to side hustle, you are unlikely to have vast amounts of time to dedicate to it. More importantly, you probably don’t have either the time nor the inclination to learn the necessary skills that will ensure smooth operations, such as accounting, content creation, IT services, customer services, etc. But those are tasks that you can entrust to outsourced experts, who can provide the support you need to keep your side hustle running.  

In conclusion, is a passive income side hustle as passive as we want it to be? The answer is no, and while you may not be investing all your energy in maintaining your side hustle and keeping the money coming, you will certainly need to consider how to run it.

4 thoughts on “What is The Actively Strategic Side of Passive Income?

  1. The concept of “actively strategic passive income” is fascinating because it highlights that even income streams often labeled as “passive” require thoughtful planning and effort to set up. It’s about recognizing that building these income sources demands an active strategy upfront—whether it’s creating content, investing, or developing a product.
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