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Everything You Need to Make a Passive Income Strategy Work



Deanna Ritchie

Passive income is a hotly discussed topic, and for good reason. Hypothetically, with the right passive income strategy, you could be capable of generating significant volumes of revenue every month without lifting a finger to work for it.

It’s a beautiful idea, and one that most of us would be willing to chase.

However, the realities of passive income generation are a bit more complex than investing moguls and finance influencers would like you to believe. If you’re going to make a passive income strategy work, you need to have all the right ingredients in place.

The Passive Income Strategy

Let’s start by talking about the passive income strategy as a whole. What is it about this strategy that is so compelling for investors and personal finance gurus?

For most of us, the primary way to make money is to do work. The basic idea is to generate income without having to work.

Perhaps you make a salary contingent on your ability to work full-time, or perhaps you make money on an hourly basis. In either scenario, you have to contribute many hours of work to get the money you need.

With passive income, this time expenditure is not necessary; the money just rolls in. It sounds like a ridiculous dream, but it is realistically possible. The best way to understand passive income is to process it through examples.

Rental property management is one such example. In this strategy, you’ll purchase a property to add to your portfolio. Then, you’ll secure a tenant to rent it, and you’ll collect monthly rental income from them.

You’ll incur monthly expenses, including your mortgage payment, maintenance, and repair requests. However, the rental income should more than make up for all of these. So, for the most part, you’ll be turning a profit without spending much time or effort.

As you can already see from this example, it’s easy to exaggerate just how passive your passive income strategy can be.

The Problems With Passive Income

However, there are several problems with passive income as a concept. If you try to make money without working, you’ll note that some of the following situations occur.

Startup Time Requirements

First, you need to think about startup time requirements. Many passive income strategies require you to do some heavy lifting up front. At a minimum, you should be researching your opportunities before pursuing them and learning more about this particular topic. Depending on which passive income strategies you choose, you could spend dozens to hundreds of hours laying the groundwork necessary to get your operation up and running.

Ongoing Time Requirements.

Beyond that, you’ll need to spend at least some time managing your passive income as it rolls in. You may not be required to work a full 40 hours each week, but you will need to measure and analyze your progress, take care of any hiccups, and make adjustments if the situations responsible for generating your income begin to change.

Capital Requirements

In some passive income strategies, you’ll need a sum of capital to get started. For example, you may be interested in investing in stocks. Certain stocks pay out quarterly dividends, allowing you to make money passively just by owning these stocks indefinitely. However, you’ll still need enough money to buy these stocks initially. For example, if you want to generate $30,000 per year, and you found a stock that pays 3 percent of its value per year in dividends, you’ll need to own $1,000,000 of this stock to make that work.


Many newcomers to the passive income strategic world suffer from overconfidence. They were told that they could make money without having to put in any work, so they underestimated the requirements necessary to generate this type of money. Unhealthy expectations can compromise your potential.

How to Make Passive Income Work

So what exactly does it take to make a passive income strategy work?

Focus on the long term.

For starters, you need to focus on the long term. Passive income is best utilized as a comprehensive strategy and one that can fuel you for decades. The first few months and even the first few years of your efforts may not fully pay off. Setting reasonable expectations about how and when you’re going to start to make money will help you see things more clearly and make more objective, focused decisions.

Ground yourself with a solid career.

For many people interested in passive income, the ultimate goal is to retire and live off the income generated by their assets and strategic holdings. However, before you get to that point, it’s a good idea to ground yourself with a solid career. Making money the conventional way is a great way to build up your available capital so that you can fund more significant and better investments. It’s also a great fallback if your passive income strategies fall through.

Start with a plan.

Whether you’re building a website, buying property, or something totally different, starting with a plan is essential. You can’t blindly jump into a passive income strategy and expect to make money consistently or reliably. Instead, you need to spend hours doing your research, talking to experts, and coming up with a high-level approach that can work.

Diversify your income streams.

If you’re going to get into passive income, it pays to pursue different types of passive income generation. Just as you would diversify an investment portfolio, it’s important to diversify your income streams. This way, you’re not totally dependent on any one source of income; if you suffer losses in any one area, you’ll have plenty of other income sources to supplement it.

Learn from the experts.

Few people are lucky or naturally talented enough to make passive income work for them initially, with no outside influence whatsoever. Instead, most people build their strategies from the ground up by relying on expert advice from seasoned veterans.

Read books, listen to podcasts, visit blogs, and engage with influencers in your chosen area so that you can immerse yourself in new knowledge and perfect your skills. You also shouldn’t think of this as a one-time deal. Learning from more experienced experts is a great way to continue polishing your skills indefinitely, especially if you plan on adding new sources of passive income to your portfolio.

Measure and scrutinize your results.

Put some sort of system in place to measure and analyze your results.

  • Total the amount of money you are making from each of your passive income streams.
  • How much money are they costing you?
  • How much time are you spending on each of these revenue streams, and how do you feel when managing them?

It’s important to fully understand the total costs and benefits associated with each of your strategic acquisitions to continue to manage them properly.

Cut what isn’t working.

You need to protect your finances carefully if you’re going to succeed in the long term. That means you need to be ruthless and cut whatever isn’t working. Unfortunately, too many people new to passive income generation fall prey to sunk cost fallacy. They want to continue holding their assets so they can maintain a chance of eventually getting value from them. But most of the time, it’s better to cut your losses and move on to something that’s more profitable.

Keep making improvements.

There’s always room to grow and improve, so keep learning and adapting your approach. As you develop as a passive income investor, you’ll get exposure to new income generation strategies, new tactics, and new ways to develop yourself; take advantage of them.

As long as you’re proactive and willing to plan, you can make a passive income strategy work for you. Of course, you may not be able to develop it overnight, and it may not turn out to be precisely what you expected, but you will be capable of making more money for less effort. And for most people, even some small, incremental steps in this direction will be more than worth the effort.

Image Credit: Pexels; Thank you!

Deanna Ritchie

Managing Editor at ReadWrite

Deanna is the Managing Editor at ReadWrite. Previously she worked as the Editor in Chief for Startup Grind and has over 20+ years of experience in content management and content development.


Fintech Kennek raises $12.5M seed round to digitize lending



Google eyed for $2 billion Anthropic deal after major Amazon play

London-based fintech startup Kennek has raised $12.5 million in seed funding to expand its lending operating system.

According to an Oct. 10 report, the round was led by HV Capital and included participation from Dutch Founders Fund, AlbionVC, FFVC, Plug & Play Ventures, and Syndicate One. Kennek offers software-as-a-service tools to help non-bank lenders streamline their operations using open banking, open finance, and payments.

The platform aims to automate time-consuming manual tasks and consolidate fragmented data to simplify lending. Xavier De Pauw, founder of Kennek said:

“Until kennek, lenders had to devote countless hours to menial operational tasks and deal with jumbled and hard-coded data – which makes every other part of lending a headache. As former lenders ourselves, we lived and breathed these frustrations, and built kennek to make them a thing of the past.”

The company said the latest funding round was oversubscribed and closed quickly despite the challenging fundraising environment. The new capital will be used to expand Kennek’s engineering team and strengthen its market position in the UK while exploring expansion into other European markets. Barbod Namini, Partner at lead investor HV Capital, commented on the investment:

“Kennek has developed an ambitious and genuinely unique proposition which we think can be the foundation of the entire alternative lending space. […] It is a complicated market and a solution that brings together all information and stakeholders onto a single platform is highly compelling for both lenders & the ecosystem as a whole.”

The fintech lending space has grown rapidly in recent years, but many lenders still rely on legacy systems and manual processes that limit efficiency and scalability. Kennek aims to leverage open banking and data integration to provide lenders with a more streamlined, automated lending experience.

The seed funding will allow the London-based startup to continue developing its platform and expanding its team to meet demand from non-bank lenders looking to digitize operations. Kennek’s focus on the UK and Europe also comes amid rising adoption of open banking and open finance in the regions.

Featured Image Credit: Photo from; Thank you!

Radek Zielinski

Radek Zielinski is an experienced technology and financial journalist with a passion for cybersecurity and futurology.

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Fortune 500’s race for generative AI breakthroughs



Deanna Ritchie

As excitement around generative AI grows, Fortune 500 companies, including Goldman Sachs, are carefully examining the possible applications of this technology. A recent survey of U.S. executives indicated that 60% believe generative AI will substantially impact their businesses in the long term. However, they anticipate a one to two-year timeframe before implementing their initial solutions. This optimism stems from the potential of generative AI to revolutionize various aspects of businesses, from enhancing customer experiences to optimizing internal processes. In the short term, companies will likely focus on pilot projects and experimentation, gradually integrating generative AI into their operations as they witness its positive influence on efficiency and profitability.

Goldman Sachs’ Cautious Approach to Implementing Generative AI

In a recent interview, Goldman Sachs CIO Marco Argenti revealed that the firm has not yet implemented any generative AI use cases. Instead, the company focuses on experimentation and setting high standards before adopting the technology. Argenti recognized the desire for outcomes in areas like developer and operational efficiency but emphasized ensuring precision before putting experimental AI use cases into production.

According to Argenti, striking the right balance between driving innovation and maintaining accuracy is crucial for successfully integrating generative AI within the firm. Goldman Sachs intends to continue exploring this emerging technology’s potential benefits and applications while diligently assessing risks to ensure it meets the company’s stringent quality standards.

One possible application for Goldman Sachs is in software development, where the company has observed a 20-40% productivity increase during its trials. The goal is for 1,000 developers to utilize generative AI tools by year’s end. However, Argenti emphasized that a well-defined expectation of return on investment is necessary before fully integrating generative AI into production.

To achieve this, the company plans to implement a systematic and strategic approach to adopting generative AI, ensuring that it complements and enhances the skills of its developers. Additionally, Goldman Sachs intends to evaluate the long-term impact of generative AI on their software development processes and the overall quality of the applications being developed.

Goldman Sachs’ approach to AI implementation goes beyond merely executing models. The firm has created a platform encompassing technical, legal, and compliance assessments to filter out improper content and keep track of all interactions. This comprehensive system ensures seamless integration of artificial intelligence in operations while adhering to regulatory standards and maintaining client confidentiality. Moreover, the platform continuously improves and adapts its algorithms, allowing Goldman Sachs to stay at the forefront of technology and offer its clients the most efficient and secure services.

Featured Image Credit: Photo by Google DeepMind; Pexels; Thank you!

Deanna Ritchie

Managing Editor at ReadWrite

Deanna is the Managing Editor at ReadWrite. Previously she worked as the Editor in Chief for Startup Grind and has over 20+ years of experience in content management and content development.

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UK seizes web3 opportunity simplifying crypto regulations



Deanna Ritchie

As Web3 companies increasingly consider leaving the United States due to regulatory ambiguity, the United Kingdom must simplify its cryptocurrency regulations to attract these businesses. The conservative think tank Policy Exchange recently released a report detailing ten suggestions for improving Web3 regulation in the country. Among the recommendations are reducing liability for token holders in decentralized autonomous organizations (DAOs) and encouraging the Financial Conduct Authority (FCA) to adopt alternative Know Your Customer (KYC) methodologies, such as digital identities and blockchain analytics tools. These suggestions aim to position the UK as a hub for Web3 innovation and attract blockchain-based businesses looking for a more conducive regulatory environment.

Streamlining Cryptocurrency Regulations for Innovation

To make it easier for emerging Web3 companies to navigate existing legal frameworks and contribute to the UK’s digital economy growth, the government must streamline cryptocurrency regulations and adopt forward-looking approaches. By making the regulatory landscape clear and straightforward, the UK can create an environment that fosters innovation, growth, and competitiveness in the global fintech industry.

The Policy Exchange report also recommends not weakening self-hosted wallets or treating proof-of-stake (PoS) services as financial services. This approach aims to protect the fundamental principles of decentralization and user autonomy while strongly emphasizing security and regulatory compliance. By doing so, the UK can nurture an environment that encourages innovation and the continued growth of blockchain technology.

Despite recent strict measures by UK authorities, such as His Majesty’s Treasury and the FCA, toward the digital assets sector, the proposed changes in the Policy Exchange report strive to make the UK a more attractive location for Web3 enterprises. By adopting these suggestions, the UK can demonstrate its commitment to fostering innovation in the rapidly evolving blockchain and cryptocurrency industries while ensuring a robust and transparent regulatory environment.

The ongoing uncertainty surrounding cryptocurrency regulations in various countries has prompted Web3 companies to explore alternative jurisdictions with more precise legal frameworks. As the United States grapples with regulatory ambiguity, the United Kingdom can position itself as a hub for Web3 innovation by simplifying and streamlining its cryptocurrency regulations.

Featured Image Credit: Photo by Jonathan Borba; Pexels; Thank you!

Deanna Ritchie

Managing Editor at ReadWrite

Deanna is the Managing Editor at ReadWrite. Previously she worked as the Editor in Chief for Startup Grind and has over 20+ years of experience in content management and content development.

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