How to Set SMART Goals for Earning Passive Income
Smart goals are stated in a way that helps you achieve them. If a goal passes the so-called SMART test of being specific, measurable, attainable, relevant and timely, it means you have formulated a plan for making your goal actionable. In order to create passive income, you need to have a clear outcome and a workable plan.
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Instructions
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Formulate a specific goal. Determine not only how much passive income you intend to earn, but how you will earn it. For example, your goal might be to earn $1,000 a month through affiliate commissions on physical products or $3,000 a month by buying rental properties. Calculate how many items you will need to sell or how many tenants you need, and include details of why this goal is important to you.
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Make your goal measurable. Calculate the milestones you intend to reach along the way toward your primary goal, so you can monitor the effectiveness of your actions. If you ultimately want to earn $3,000 a month within six months, decide what you should be earning at the three-month mark and adjust your plans if you haven't achieved what you expected.
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Choose a goal that you believe is attainable or achievable, based on your current situation and the resources available to you. Factor in the time you have available to set up your income-producing plan and ensure your goal is realistic.
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Make your goal relevant to your overall life plan and priorities. If you have a family, make sure your family members understand that you may be less available to them in the short-term while you build your passive income model. Bring them onboard and get their support.
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Set a timeline for achieving your goal, to motivate you and help you monitor your results. Break your activities down into monthly, weekly and daily tasks, working backwards from your goal deadline.
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References
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