I used to think that passive income was more or less a myth. I was so down on the concept that I would usually put the term “passive” in quotes when talking about this so-called “passive” income, like I did just now.
It’s not that I didn’t believe in it; it’s just that I thought the term was overused and not representative of the active manner in which people set up these income streams.
Dr. Peter Kim changed the way I think about passive income. See? I didn’t use the quotation marks again. I like the way he answers the question What is Passive Income?
He describes it as income that can take significant work up front, but requires less effort as time goes on, even as the income may be increasing. It usually starts out as active income, but eventually moves to the left on the spectrum from time-intensive earned income on the right to truly passive income of the left.
In this post that originally appeared on Passive Income MD, Dr. Kim shares snippets of the stories of a handful of doctors who have created passive income for themselves in a variety of ways.
How Are These Physicians Creatively Generating Passive Income?
Passive income can be quite intimidating to those just starting out. There are so many options and you will likely have very little experience in any of them.
The best method, and really only method, to start anything new is to dive in head first and learn as you develop your skills and investments. That being said, there is still no guarantee that you will be successful.
It is important, however, to choose something that you can be passionate about while having a good track record for being a good investment. This is what brings me here today. What can we learn about the trends from other physicians who have seen success with other sources of income?
Let’s summarize what some avenues are to create other streams of income from some physicians previously featured on this site:
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Create Unique Content
Dr. Amy Shah had always been obsessed with nutrition and felt that it wasn’t incorporated enough into her medical school learning and her everyday practice as she had hoped.
Her passion for the topic brought her to start writing articles about the subject, which became so popular that she was encouraged to make a website, which led her to create a brand as a wellness expert for busy professionals.
In this case, Dr. Shah had something that she was passionate about and took it from an idea into a business investment.
Dr. Buck Parker took advantage of the early days of the internet to sell P90x online with Google Ads and actually got himself cast on the NBC and Bear Grylls Reality TV Series “The Island” while starting off his early years as a physician.
However, once he realized that he must adapt to growing trends on the internet, he began putting out unique content on Youtube and Instagram that has been wildly successful for him.
Although he does state that he devotes quite a bit of time to these projects, if you are also interested in becoming a social media influencer, it could end up being a very good investment in yourself.
Dr. Michael Kim is yet another brand creator. After learning behind the scenes at a large supplement company as a Medical Director of Research & Development for years, he took this knowledge to start his own company, AthletesRx, a sports nutrition company that focuses on giving a good portion of their profits back to the community.
Dr. Edna Ma is another entrepreneur that created a product called BareEase, a prep kit that numbs the skin of the bikini area before waxing or laser treatment to reduce pain. It took her just one Brazilian bikini wax to get her brain thinking about how to improve the process.
She had no experience with business or manufacturing, but she more than made up for it in her efforts and eventually made it onto Shark Tank. This led to her gaining an investor who put the product on autopilot.
Dr. Saya Nagori had the idea of bringing the world of eye care into telemedicine. So she created a telemedicine company called SimpleContacts which made the process of renewing a prescription and purchasing contacts online easy and painless.
Develop Your Ideas
Even though he did not know how to code the required language for the app, by using the available online tutorials, the app quickly became a reality. This would have certainly not been able to happen without his passion and initial dedication to the project. The app was then able to collect profits for years to come after the initial time investment.
If you can see the trend so far, if you have a passion and the willpower to make it happen, it could end up being a valuable source of income for years to come!
Real estate investing is a tried and true way of creating passive cash flow as well as long-term wealth.
The first time I started investing in real estate was through a real estate crowdfunding platform where I was able to an initial $5000 investment into something that created steady cash flow for more than a year.
My continued success in crowdfunding motivated me to diversify and buy my own properties. Through time, these investments have allowed me to start gradually retiring due to my continued passive income through the years. You can read my full story here.
Dr. Eric Tait took his passion for real estate and created Vernonville Asset Management, a boutique private investment firm focused on alternative investment strategies. It allowed him to cut back on his practice of medicine dramatically and create the ideal work-life balance.
Making Your Own Plans
I hope that I have gotten your creative juices flowing. Ultimately, it is important for you to find something that uniquely suits your skills and passion. If any one of these businesses seems to be something that could interest you, I highly encourage you to read more on their story and how you can follow in their footsteps.
Although you may not succeed on your first project, don’t fret, get back up and keep trying until you succeed. Be patient and find something worth the time you have to give.
Not all opportunities will be entirely ‘passive’, so it is important to outline your end goals and what kind of life you’re trying to create. Make it happen!
How does reading these stories inspire you? How have you created passive income?