I just read a great post by Felicia over at nojobformom.com about big dreams and long term thinking. Of course, this got me to thinking about my longer term goals for making passive income online.
In case you hadn't read previously, my goal is to make $3000 monthly by the time my youngest is on her way to college. That means I have about 8 years and 10 months left to achieve this level of passive income. Considering that I made just over $58 last month, it would seem that getting anywhere near my goal in less than a decade would be impossible.
But, what happens if I start by making just $30 per month and increase earnings by 5% each month for the next 106 months? Certainly a 5% increase doesn't sound that unrealistic, does it? That would simply mean going from $30 to $31.50. At the end of 6 months, that would be $40.20. I am sure that I can be making over $40.20 monthly by the end of this year.
However, if I carry this out for the full 106 months, then I would be making over $5200 per month! That is well above my goal of $3000 monthly. So, the question becomes: What does it take to increase earnings by 5% each month?
Well for August 2010, it probably won't take a whole lot since I will likely be above the $31.50 without doing much. But what I do this month will make a difference 2 or 3 years down the line when the 5% increase is a much bigger number.
But just like compound interest can work to the advantage of the saver, the work I do now will compound and work to my advantage. Each backlink will metastasize into several backlinks. Each article will be read multiple times and will continue to earn month after month long after my effort has ceased.
Thinking about this is mighty encouraging. Even though growth seems fairly slow now, I realize that it doesn't take a lot of growth to add up into some seriously big numbers over time. It makes up for the burned out feeling that I was having last month and will inspire me to keep going and shooting for 5% growth each and every month. It will also provide me with a target each month to track my longer term growth. This means that in December 2011, I should have made $69 to stay on target. I think I can do it!
Photo credit: TakingITGlobal
2 weeks ago