Dear Money & Crisis Reader,
This week we’ve been talking about adding an extra layer of protection to your finances by generating a passive income.
A passive income is a powerful financial tool best defined as an extra line of cash that ticks away with little to no effort on your part.
I’m a big fan of these bad boys because they give you more money to help with your financial preparations — which is never a bad thing. And if you lose your primary income for whatever reason, you have your passive income to fall back on.
But there’s another type of secondary income that can be just as lucrative — and fulfilling to boot. These incomes tend to take a little more effort on your part. But the end result is a lot more satisfying.
The Passion Income
I know what you’re thinking.
If everybody “followed their passions,” we’d all end up as broke actors and musicians.
But I’m not talking about pursuing your dreams at any cost.
Far from it.
I’m talking about taking something you’re passionate about and turning it into a steady little money spinner on the side.
It can be anything with the potential to make money. But the more passionate you are about it, the more driven you will be and the more likely you will be able to create a satisfying side income out of it.
Take my buddy Dan, for example.
A few years ago, Dan realized he hadn’t saved enough for his retirement.
Mind you, his finances were in pretty good shape. But he hadn’t saved enough money to have the kind of retirement he wanted live.
He wanted to travel the world with his wife, Carol. He wanted to be able to visit his kids and grandkids — who live on the opposite side of the country — whenever he wanted. More than anything, he wanted to have the financial security to spend his own money and not have to worry about outstripping his savings.
That’s when he bought a goat.
A little strange, I know. But it was all part of Dan’s master plan.
You see, Dan had always fancied himself a bit of chef… and he had recently heard there was good money in cheese… more specifically, goat cheese.
So he looked up a couple of YouTube tutorials on how to make your own cheese… and was shocked to find that the whole process could be done in the kitchen.
“It’s crazy how easy it was to find out everything I needed to know,” says Dan. “These days, all the information is out there on YouTube. And it’s all free. Just look it up. There are all these step-by-step tutorials by these expert cheesemakers. Even I could follow them, no problem.”
It took him a couple of weeks to get all the equipment he needed and nail down the process. But it wasn’t long before he was producing enough cheese to justify renting a stall at the farmers’ market and selling his product to locals.
“I started with a very basic recipe,” says Dan. “Just your basic goat cheese or whatever. But when I saw that people were actually buying it and enjoying it, I started to experiment with more complex recipes. I made lemony goat brie, sour-smelling Humboldt Fog and even a ‘drunken cheese’ made with red wine. They were all a hit.”
Dan says that it’s satisfying watching people enjoy something he made with his own hands. Couple that with the financial security the extra income has given him and you’ve got a grade-A passion income.
“After expenses, I’m making about an extra $1,500 a month,” says Dan. “I could be earning more. In fact, a local restaurant asked me to supply cheese for their lunch menu and I said no. I like things the way they are now. It still feels like a hobby, but the extra income makes a real difference.”
And that’s the key to a great passion income.
Unlike a passive income, you will likely have to keep putting in continuous effort. But if you strike on the right idea for you, it will feel like getting paid for one of your hobbies.
I don’t think I need to tell you how rewarding that could be.
When I asked Dan if he plans to keep making cheese after he retires next year, he laughs and says, “Well, I think I have to! Everyone around here knows me as the Cheese Man now.”
What about you? If you could earn money in your free time doing anything, what would it be? Maybe you already have a passion income and it’s working out great. If so, click here to shoot me an email and tell me all about it.
All the best,
Editor, Money & Crisis
P.S. No time for messing around with goats? Check out James Altucher’s powerful income-building strategy. This simple technique can be used to yank $3,000 out of the stock market every month. Click here and he’ll show you how to do it yourself. Don’t delay. You only have until midnight Sunday to take him up on his offer.