Building passive income online can be a great opportunity to take control of your personal finances. It typically requires a lot of hard work up front to get the income stream created. If you have built a solid income source, then your hard work will pay off down the road. But how can you tell the potential of your time and effort spent? By projecting out your earnings per hour and comparing it to other income sources.
I recently completed a personal challenge that required me to write 100 eHow articles in 1 month. While I did not reach my 100 article goal, I still finished the month with 72 published articles. In order to see the true potential of the time I spent writing these articles, I can project out my earnings for one year.
eHow Dollars per Hour Earnings
In the first month of writing these 72 articles, my eHow earnings totaled $124.27. I spent 42 hours writing these articles which calculates to ~$2.95 per hour. I will admit that there is nothing special about earning $2.95 per hour. However, if you project these earnings out over the course of 12 months, you may change your mind.
I am in the 2nd month of collecting earnings after creating this passive income online source. The beautiful thing about this income stream is that I will earn a projected ~$128.63 from these same articles this month with no time spent on my part. That pushes my earnings over $6 per hour!
If I were to assume that these articles could continue to earn the same amount each month for 1 year, my earnings jump to $36.13 per hour. I could keep going, but you get the picture. Earning over $30 per hour (and possibly a lot more over time) is absolutely worth my time and effort when compared to my active income earnings.
Active Income Dollars per Hour
My current job that is earning active income is a salary position with a company that comes with health benefits, a 401k match, as well as a steady paycheck. Based on a normal scheduled of working 60 hours per week, I earn around $24.95 per hour (not factoring in any benefits).
Lately, because of staffing cuts and projects, I have been working closer to 70 hours per week. If I were to calculate my earnings per hour rate based on one full year of working at this pace, it would come out to $20.80 per hour.
Comparing the Income Sources
If I were to ask you – Would rather earn $30 per hour or $25 per hour? What option would you pick?
Obviously there are several assumptions in these calculations that I have provided. Health insurance coverage and 401K employer matches are not factored into my active income calculations.
I am also assuming that I can maintain the current earnings rate for my eHow articles. Who knows, the company could go under tomorrow and those dollars would go away. But who is to say that my employer couldn’t do the same?
By projecting out your passive income online earnings, you can easily compare them with other income sources. These calculations can be an excellent motivator to keep pushing you along!
How much is your active income job really paying you?
Related posts:
- Passive Income eHow Updates – October (2009)
- How to Make Over $400 per Hour in Passive Income
- Passive Income eHow Updates – August (2009)
- Passive Income eHow Updates – July (2009)
- Tips for Making Money Online for Free Using Twitter
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{ 2 comments… read them below or add one }
If you calculate hourly earnings for your top earning eHow articles, it’s even more impressive. I have a few $50/hr articles which is great
@Captain eHow – That is sweet! I have some that are probably getting up there and some that have not earned a dime in over 1 year now.