Springtime is for making money moves. And if it wasn’t, now it is. The timing is perfect, both in our fiscal year and as related to the seasons.

We are moving further away from our New Year’s promises – those resolutions are now in the rearview mirror, and it’s up to us to check in and see if we’ve followed through… or if the resolutions are still relevant. The first financial quarter has come to an end. Finally, we are entering spring, which puts us on the part of the medicine wheel when we are preparing to plant seeds and reap the benefits of those seeds. We should do the same with our thoughts around money: plant seeds now, as well as check in on those trees and ‘bulbs’ (aka our savings and investments) from the past to see if they’re set up to blossom. 

The sad truth is that most of us are not taught financial literacy. It’s partially not our fault, as it’s not found in most education systems. We are also living through a time of fast-moving financial change. Our parents balanced checkbooks, while we may use Zelle to make instant transfers or have fancy apps for trading stocks and tracking our budgeting. When it comes to money, many of us are stuck in the thinking and mindset of our parents and/or immediate surroundings. Very few people live that life where the money comes a bit easier, and many lack a mindset or strategy around planting financial seeds – a financial garden to tend to if you will.

Enter: passive income. In terms of financial literacy and power, one of the things I wish everyone was taught is how to build a life that includes goals of building passive income. It can start small. A penny is still a penny, and a lot of pennies add up. (Compound interest is real.)

So, what is passive income?

Not to oversimplify this, but passive income is what it sounds like: income that takes little to zero effort to acquire in real-time. It’s important to note that this does not mean it doesn’t take effort to set up the conditions for the income to come. However, unlike your day-to-day work or deliverables, this is something that, once set in stone, you don’t need to touch as often. It’s a longer-term game, as well. Remember, Rome wasn’t built in a day. Over time, you can build wealth or set yourself up well for retirement with passive income, such as rental properties, investments, and more.

You may be asking what passive income actually looks like. Below are several strategies to consider. Of course, your current income and net worth will affect how you approach planting a garden of passive income strategies. It’s okay to start small. And remember, patience is key…

Several strategies for passive income:

Stocks 

\Getting started with stocks will take some self-education, but there are so many free, incredible resources online (think Nerd Wallet) to help you learn. Learn to get comfortable with things you are uncomfortable with. Then, learn to manage money and learn a bit about stocks so that you can put your money into places that will work for you.

Interest accounts (high-yield interest/savings accounts)

There are many types of accounts where you can earn a “high” interest rate. Though in some cases, you might not be able to touch your money for a bit, this is a wonderful way to play it safe and earn a bit on the side. These are especially great for people who don’t want to play the stocks game, as well as those who have the income to set aside money to put into an account they won’t touch for a while. If you don’t trust yourself to leave your savings alone, you might also consider a CD (Certificate of Deposit). These have penalties if you pull your money out before the agreed-upon date. In addition, the longer the date of the CD, typically the higher the interest rate.  

Real estate 

If you have the funds or solid credit, this is always a worthwhile investment. A critical note: only invest in things that you can ideally sit on for 10 years, but 5 at the very least. Markets tend to follow a pattern. 5 years is okay, and 10 years will/should always pay off. This includes both residential and commercial investments. Think rental properties, AirBnB opportunities, gas stations, storage units, shopping centers, etc. Once whatever property is paid off, the money you make (after expenses) is yours with little maintenance. Do note that you need to set aside money for things like property taxes or unexpected repairs. When you’re the landlord, that broken HVAC or leaky roof situation is on you. Real estate is an amazing way to build wealth over time, but it does require that you’re a bit more on the financially comfortable side. 

Build a product or create an online offering

We live in an era where you ought to take your insights and gifts and turn them into something better. Why not help the world and help your pockets simultaneously? Online turnkey offerings are almost infinitely scalable. Beyond the realm of pyramid scheme coaches, there are actually many incredible entrepreneurs with offers that have integrity – and many of them make it rain online. These offerings can come in the form of recorded courses, PDFs/ebooks, trainings, and more. You might think of something you’re exceptionally good at and what problem that helps people solve problems. For example, maybe you already are a whizz at stocks and financial literacy. Say you’ve started sharing this skillset online – via Instagram and/or a newsletter. You can package your learnings into a course that includes PDF downloads, guides, and even recorded videos. Once it exists, it can be purchased any number of times and becomes an easy form of passive income. 

Again, you may think of passive income a bit like a garden. You put in the initial effort to till the soil and plant the seeds, but then you wait. When you first plant your garden, it may look like nothing is there. Patience is required – and those summer tomatoes don’t pop overnight. Of course, you water and weed your garden – even our passive income strategies require maintenance and revisiting. But once those zucchini plants start popping, it’s out of your hands.