As technology continues advancing, the way in which we live also evolves. While paying bills and going shopping were often considered chores, they can now be done at the touch of the button. To a certain degree, earning income can also be more digitized and hands-off.
Passive Income
I define passive income as money generated that doesn’t require day-to-day management. Examples of passive income are collecting rent on a building, offering online courses, or investing your money in stocks. Though these sources of income may take some work to get up and running, they eventually (typically) earn you money once the initial set-up is complete. It is important to note I am talking about money generated from a largely autonomous asset, NOT the IRS’s definition of Passive Income.
Why Should You Build Passive Income?
With the recent Covid-19 pandemic creating an uptick in unemployment, income generated outside of the usual employment scenarios are increasingly coveted. Passive income streams are a great supplement or even occasionally a replacement for a full-time job. And, as the full-time career model is beginning to show cracks, many millennials today are generating multiple passive income streams with online side hustles to replace or augment the nine to five monotony.
Three Reasons to Have Passive Income Streams
- Create retirement savings or save for a big expense (i.e. downpayment on a home)
- Retire early and gain financial freedom
- Protect yourself from a job loss or loss of income
The Rise of Ecommerce Stores During Covid-19
What did we learn from the pandemic? Online shopping is pandemic-proof. Ecommerce has seen extensive growth over the past year. From a psychological perspective, people are approaching the Covid-era of isolation and uncertainty by making changes to their shopping behaviors. From bulk buying (see: Costco’s growth) to online shopping (see: Amazon’s growth), people are changing what they’re buying, when, and how.
With brick-and-mortar stores floundering, ecommerce stores offer lower overhead, greater flexibility, and new opportunities for entrepreneurs. Moreover, ecommerce stores are always open and cast a wide net when it comes to customers. So, how exactly do you start an ecommerce store? And, is this form of passive income truly all passive? The term may be slightly misleading depending on the business model. Ecommerce stores still require work upfront before enjoying passive cash flows.
