Before moving forward in your journey toward passive income, it’s important to have a clear goal for what you want to accomplish.
Don’t underestimate the value of this. No feeble excuses. No vacillating.
If your actual desire is to create a new stream of passive income, then let’s make sure your goal includes three elements:
- How much money you want to earn per month from your next stream of passive income (specific dollar amount)
- How long you expect that stream to last (number of years)
- Your deadline for receiving your first month’s income from that stream
This isn’t your ultimate goal we’re talking about here. It’s the goal for your first (or your next, if you’ve done this before) stream of passive income.
If you have something different in mind that doesn’t really fit the parameters above, then by all means set the goal you feel is best for you. At the end of the year, when other people are enjoying their new streams of passive income, you can see how your own goal worked out.
The idea is to set a goal that’s motivating but that’s also believable for you.
If you’re telling yourself that you can’t earn any passive income because it’s too much for you, then your imagination needs work. You could put $100 in a free savings account and earn a trickle of passive income each year for decades. So don’t be lazy here. Don’t let yourself off the hook. Set a goal.
Goal setting is a skill that takes practice. If you fumble this initially and set a goal that’s too big and unbelievable for you, you won’t achieve it. If you set an unrealistic deadline, you’ll blow the deadline. How do you know what’s realistic? You calibrate with practice, just like you learned to walk and talk.
I don’t expect your goal to be perfect. That isn’t the point. The goal is just the first step to get you moving forward and taking this seriously. And the ultimate goal is to get good at setting achieving your goals. This means you have to risk making mistakes in the beginning.
As the saying goes, There never was a winner who wasn’t at some point a beginner. So begin by setting a goal.