Lessons Learned in 7 Years Earning Passive Income - A Path to FI (Part 2)
Jun 13, 2021
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Eric shares lessons learned and mistakes made while creating passive income streams for his architecture practice. Topics include diversifying income sources, importance of understanding market dynamics, maximizing revenue growth through digital assets and physical products, benefits of being a creator, boosting creativity through walks, motivations for passive income, and reflections on privilege and gratitude.
Diversifying income sources is essential for financial independence, with millionaires having an average of seven streams.
Understanding the market and setting appropriate prices are crucial for successful product sales and business sustainability.
Deep dives
Lessons Learned from a Failed Business Venture
The speaker shares insights from a failed business venture where he tried to sell a house plan set but struggled with pricing and customer expectations. Initially priced at $2,500, the plan set did not align with the market's perceived value, leading to adjustments in pricing to attract potential buyers. This experience highlighted the importance of understanding the market and setting appropriate prices for products.
Transitioning from Side Hustles to Passive Income
The discussion delves into the difference between side hustles and passive income generation, with examples like low-content publishing for passive income. The speaker emphasizes leveraging existing skills or developing new ones to create digital assets like books or online courses for continuous passive income. Additionally, the importance of building a product suite to meet customer needs at different price points is highlighted as a strategy to increase revenue.
Generating Ideas Through Quiet Contemplation
The speakers reflect on the value of quiet contemplation for idea generation and creativity, emphasizing the benefits of disconnecting from distractions like phones and media. By allowing the mind to wander during walks without external stimuli, new ideas are sparked. This approach helps in generating content ideas for blogs, books, and other projects by providing space for focused thinking. The process of clearing mental clutter and embracing silence is highlighted as a method for enhancing creativity and productivity.
Diversifying your sources of income is an important step on the path to financial independence. On average, millionaires have seven streams of income. In part 2 of our series on passive income, Eric shares the lessons learned and mistakes made as he created passive income streams for his architecture practice. In 2020, 90% of his small business revenues came from passive sources, bringing him closer to reaching financial independence. Join us as we explore these topics and more in this second episode in our series about passive income.