Could an Extra Dollar per Day of Passive Income Change Your Life?

When we look at our financial situations we tend to look at them on a larger scale.  For example, you might look at your wage as so many dollars per hour, or your salary as so many dollars per year.  Now in these cases it can seem a bit overwhelming when you are trying to figure out how you are going to make $50,000 this year or get rid of your $300,000 mortgage.  In these cases it can be really hard to just pull that kind of money out of thin air, and chances are that it can cause you a lot of stress.  In the interest of making my life a little more stress free, I have been trying to figure out how to change my own life so that our family is in a better financial situation, so I thought that I would start small and see if increasing our passive income by just $1 per day would make a difference in our lives.

Creating one extra dollar of wealth each day doesn’t seem like a big challenge for me. Since my area of expertise is online marketing, that means that I might just have to create an extra page on a website, slap a website together, or even make a funny video to put on Youtube.  Worst case, it would be as easy as selling $25 of products each day from Amazon.  This could be 25 pairs of socks, or a nice wooden toilet seat – realistically creating a site or page that could sell that much product in a day is child’s play.  For myself, I really see this as a commitment of just an hour or two per day, which compared to working a 9-5 job seems like a very small commitment.  So time-wise, it seems like a no brainer – I would rather work a couple of hours when I have time in the day than work eight scheduled hours – it is better for my life and gives me an extra six hours in the day where I could do something with my wife, family or out in the community.

So far this seems like a great plan, but what does one extra dollar a day work out to in real numbers.  I try to be a realist when it comes to these things, and as a child of two accountants, I like to look at the bottom line.  So, when we look at that extra $1 per day in passive income, things start to become clear.  Take a look at the following chart:

Where do these numbers come from?  Well, it is pretty simple.  Each day that goes by, you add an extra dollar to your income from a new asset you create, but it also includes each dollar of income from every asset you produced on every previous day.  To illustrate this, lets take a look at how things work in the first week.  On day one, you just make $1 in income.  Day 2 would be $1 plus what your asset you created on day one would earn, which is $1 as well, so two dollars total.  Fast forwarding to day 7, you would make $1+$2+$3+$4+$5+$6+$7 or $28 for that week from the 7 assets you created during the previous 7 days.  The earnings continue to increase by $1 per day so your total income compounds on a daily basis.  This is because the site/page/property you create continues to work beyond the day you created it so that each day has more and more assets working for you. So by the end of one year, you have 365 money making properties (if you consider a website or webpage as an individual property) working for you on a daily basis each bringing in one dollar for you each day.

When you look at it this way it becomes clear that your work would pay off.  After just one year, you would make almost $67,000 for your couple hours of time each day.  When you break it down further, it turns into $93.75 per hour which is more than most people could ever earn working a typical nine to five work day.

If at day 365 you decided that you weren’t going to do any more work, the following year you would earn $133,225 from the work you did the first year.  When you think about it that way, it really puts a smile on your face.

So would increasing your passive income by just $1 per day make a big difference in your life?  You bet.  I challenge you to try it out for yourself and see where you are a year from now – invest in yourself to make a real difference in your life.