Passive Income Streams | How Blogging And Investing Are Related
After a few months of experience writing for HubPages I think I've learned a few things. I'm not claiming to be any sort of expert, but I think I've made some forward progress. Interestingly, the learning curve has been strikingly similar to when I was learning about investing. I was surprised to find that writing online or "blogging" and investing actually have quite a bit in common. I thought that noting these similarities and differences would make an interesting hub so I'm going to review what I've learned about both.
Grow Your Income by Blogging AND Investing
Write Online And Invest For Passive Income
First, the goal of both investing and blogging is to generate passive income. There are those that write for enjoyment or to share their opinion, but I'm assuming that the majority of HubPage authors are here to make a dime or two. Writing online can generate passive income but it is not easy. Obviously, the purpose of investing is to make money, usually for retirement. Passive income can be generated in the form of quarterly dividend payouts as well as stock price appreciation. Therefore, both hubbing and investing share a common ground in the money making/passive income aspect.
Second, to blog or invest well, requires a large amount of time learning the tools of the trade and gaining experience. Writing online for income or investing without a proper knowledge of the fundamentals is a sure way to failure. Initially, there is so much to learn it feels overwhelming. Countless hours of reading are required to learn the basics of both online writing and investing. Before attempting to make money blogging you will need to start with a basic understanding of the following:
- How to write clear concise articles
- How to write for search engine optimization (SEO)
- How to promote published material effectively
- How to effectively backlink
While there are authors that dont utilize all of the techniques above, in general a solid understanding of all the points is required for optimal results. Of course you could just start spitting out post after post without any knowledge of the above fundamentals, but your results will likely fall short of expectations.
Revenue sharing sites are a great place to get started with blogging. These sites provide all the resources needed to start posting. There is no need to learn HTML coding, website development, or even pay for web hosting. However, you will only earn a percentage of your clicks and impressions with a revenue sharing site, typically around 60%. But there are no upfront costs associated with getting started. You should get started writing with HubPages. It's free, easy to use, and has great tutorials for beginners. Other revenue sharing sites such as Shetoldme, Xomba, and Squidoo ofter the same sort of services but in my opinion are less polished then HubPages.
In parallel, to become a successful investor you will need to understand the fundamentals of the stock market. Unless your going to let someone else manage your money, but remember no one cares about your hard earned dollars more than you do, there are no shortcuts. Reading anything and everything you can find at your library and online on the subject of investing is a good way to begin. You will need a solid understanding of the stock market and its esoteric lingo. Before purchasing a single stock make sure you are familiar the following:
- How to manage risk
- How to read financial statements
- How to fundamentally value a business
- How to analyze individual stock charts and indicators
- The commission costs for each buy or sell transaction at your broker
- The effect of taxes on short and long term gains
While I'm sure not every investor is an expert in each of these areas, understanding the basics will allow you to make more educated decisions regarding your investment portfolio. Better decision making will surely increase your chances of becoming a successful investor.
Learning the basics of blogging or investing is no trivial task. Both require countless hours of reading and a large amount of time. The more effort one puts forth in the beginning to really understand the basics of both blogging for income and investing for retirement, the better the overall returns will be.
Thirdly, blogging and investing are sort of a marathon, where endurance and perseverance payoff, they are not a sprint to attain $1,000/per month in Adsense or dividend income as quickly as possible. Publishing sub-standard articles or rushing into a particular "hot" stock tip are sure ways to create less than optimal returns. Both earning income online and investing for income are forms of passive income and they take it to mature. Plant the seeds now, nurture them, and you could have a bountiful harvest in your future, but the payoff is not immediate. It takes time and effort to write quality articles. It takes time to promote and backlink hubs and it takes time for the hubs to mature and become recognized by the Google search engine. Investing also takes time. It takes time to learn to properly value a particular stock and read the company's quarterly report. It takes time to listen to the conference calls and earning reports. It takes time to accumulate shares in a company at an attractive price and generate dividend income. It takes time and patience to watch the value of your assets rise and fall daily.
Fourth, becoming a successful blogger/hubber or investor is possible. With practice, patience, and determination it is possible to generate more wealth through these income streams. Blogging and investing typically do not have an immediate payoff. Neither are a get rich quick scheme but rather income trickles in slowly at first but compounds more and more as time passes. 5 or 10 years from now you might be suprised at how much additional income it is possible to generate by writing online and investing.
Last, but not least, learning to write online and learning to invest in stocks, bonds, and options is really a life long learning experience. The internet and stock market will change. What works today might not work five years from now. When times change, the blogger or investor must learn to adapt. Learning is a process that does not end. By constantly challenging yourself to become a better writer or a better investor you can adapt when things change and continue to generate income regardless. So, go a head, get started....Today!
Passive Income Summary
In conclusion, it is possible to earn passive income through both online writing/blogging and by investing in the stock market. However, neither stream is a quick or sure way to riches. Effort and determination are required. Typically, revenue is generated online when a viewer clicks ads that are placed on your post, but good writing skills alone are not enough to make substantial passive income from blogging. Posts should be optimized for search engines to help increase traffic. Passive income from investing is obtained via quarterly dividend payments. Over many years a solid portfolio can be built and enough passive income can be earned to cover monthly expenses. You could even mix blogging and investing by using the income generated from writing online to invest. This could put you on the right path to financial freedom in your future.
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