How a Simple Budget Rule, Helped Me Start My Passive Income Journey (and Why It Can Work for You Too)
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Let’s talk about money – not in a stressful “check your bank balance” way, but in a “how can I make this work for me?” kind of way. Because if you're like me, you probably want more freedom, less financial anxiety, and maybe even a little side hustle that doesn’t take over your entire life.
I used to believe the only path to getting rich was through relentless saving — hoarding every cent from my allowance, skipping new clothes, avoiding trips with friends, and saying no to little indulgences. I thought being “disciplined” meant saying no to everything fun. But as I got older, I realized life isn’t that black and white. Some expenses aren't just about the thing itself — they’re about the moments. Like dinners at overpriced cafes — I never cared much about the food, while my friends did.
Them: Live to Eat
Me: Eat to Live
But more importantly, I cared valued the time with my friends. If I kept saying no to those plans, we’d slowly grow apart. The truth is, money can be earned again — but time, shared laughter, and late-night conversations? Those are fleeting.
That’s why I now believe in spending money with intention.
Yes, treat yourself to experiences with the people you love — but do it within reason.
That’s where the 50/30/20 rule comes in.
It gives you a guilt-free way to balance responsibilities, joyful experiences, and future goals — so you’re not just saving money but also living well.
The Passive Lifestyle + 50/ 30/ 20 Rule
You’ve probably seen it floating around Pinterest or personal finance blogs — but if you haven’t, here’s the short version:
50% of your income goes to “needs”: rent, groceries, utilities, transportation, insurance — you know, the stuff you literally can’t skip.
30% goes to “wants”: Netflix, that iced latte you love, travel, fun purchases — basically, the good stuff. Here is where you can set aside money for those cafe trips and gifts.
20% goes toward savings and debt: this is your “future” fund — emergency savings, investments, or paying off loans.
It’s simple. It gives you structure without taking away all your joy. And most importantly, it makes room for growth.
Most importantly, FOLLOW the RULES you set for yourself! Or it Won't work!
What If You Used That 20% to Build More Income?
Here’s where things got exciting for me: I realized I didn’t need to put all that 20% into a traditional savings account. What if I took just a slice — like 5% to 10% — and used it to experiment with a passive income stream?
This idea changed everything.
You don’t need thousands of dollars to start. I began my first project — an Etsy DIY craft shop — with less than $50. And honestly? That decision opened up a whole new mindset for me. It was low-risk, creative, and something I could do in the pockets of my day.
Imagine this: you’re already saving $200 from a $2,000/month income. Could you take $50 from that to try out a side hustle? That’s just one less fancy dinner per month.
Let’s Break the 50/30/20 Rule Down With Real Numbers
Here’s a super basic example if you're earning $2,000 a month after tax:
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Now let’s zoom in on that last part. What if $100 of that went toward launching something like:
A print-on-demand shop
Your first blog
Pinterest affiliate marketing
Or even YouTube automation or digital downloads?
These aren’t wild, pipe-dream ideas — they’re actually realistic and low-cost to start.
Not All Hustles Are Created Equal — Pick What Works for You
I know the internet is full of "Make $10k in 10 days!". But I’m here to tell you: passive income isn’t instant. It’s intentional. It requires effort up front, but the beauty is that it can pay off over time – often while you sleep.
Here are a few of my favorite low-barrier ways to get started:
Print-on-Demand (POD)
Perfect if you’re creative but don’t want to deal with shipping or inventory. Just upload designs to sites like Redbubble or Teespring, and they handle the rest. If you're an artist or designer (like me), this one feels extra rewarding when you see someone wearing your work!
> Here’s my blog on Setting up Print on Demand
Blogging
This one's close to my heart. Starting a blog helps you build a personal brand, grow a community of like-minded people, and even generate repeat buyers through your newsletter. Unlike affiliate links which are often one-and-done, blogging helps you nurture long-term customer relationships – kind of like loyalty programs, but more personal.
> Let’s go in depth into how you can start your money-making blog
Pinterest Affiliate Marketing
If you love sharing visual inspiration, Pinterest is your best friend. You can drive traffic to affiliate links, your blog, or your digital products – and the pins keep working for months. Think of it as low-effort SEO.
> Here’s my blog on Setting up Pinterest Affiliate marketing
YouTube Automation
Not ready to be on camera? No problem. You can script, outsource voiceovers, or even use AI tools to run faceless YouTube channels. With the right strategy, this can grow into a steady revenue stream from ads, sponsorships, and affiliate links.
Digital Products (Templates, Notion Packs, Printables)
Whether it’s an Instagram caption template or a student planner in Notion, there’s always a new trend and new needs to fill. The key? Do your research first so you’re creating something with actual demand. Use tools like ChatGPT or DeepSeek to brainstorm and compare ideas. Then validate them with YouTube, Reddit, or blog posts.
Use AI Tools for Smarter Research
Speaking of tools – one of my secret weapons in researching all of this? ChatGPT. Seriously. Whether I needed niche ideas, pros and cons of side hustles, or examples of what others are doing, it gave me a place to start.
Sure, the answers can be a little generic at first. But once I had a foundation, I dug deeper with YouTube videos, blog posts, and Reddit threads.
You don’t need to know everything — you just need to know where to start.
You Don’t Need a Lot of Money — Just the Right Mindset
You want to start something without taking on a ton of risk. I felt the same
That’s why passive income appealed to me so much. Compared to opening a cafe (Hello, $20K+ in rent and inventory) or starting a full-blown product business, spending $50 to try an Etsy store or blogging platform felt like a no-brainer.
There’s no “perfect” time to start. It's just now. Start Planning
The 50/30/20 rule helped me build structure around my money, so I could enjoy my life now and invest in my future at the same time. And that little sliver of the budget? That’s where the magic happens.
So, if you’ve been waiting for a sign – this is it.
👉 Carve out that small slice of your income.
👉 Try something simple.
👉 And watch what happens when you give your ideas a real chance.
You don’t need to be perfect. You just need to start.
TAKE ACTION: Step-by-Step Check List for Beginners
Step 1: Calculate your 50/30/20 Rule
Find out how much you are willing to spend on your needs, wants and Savings.
Step 2: Explore other ways of earning passive income
There are many ways to start, find something you are interested in.
Print on demand, YouTube automation, Esty digital product, Blogging, Pinterest Affiliates.
Step 3: Start Somewhere
Plan out the budget you are willing to spend on the business:
Marketing budget, what ai tools you want to subscribe to, and the website, and domain.
The amount of time you have in a day to work on it etc.
You can check out my other blogs to dive deeper into each of the passive income method I tried and worked for me.
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Do Follow Stackari on Pinterest: As I explore and venture into the use of AI in making passive income
* I Will be sharing more on the latest AI tools in the upcoming blogs
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Get in touch
Contact me for questions or just to say a few nice words, I won’t mind at all.
This blog made everything about passive income so much easier to grasp. The way it’s written is super clear and beginner-friendly.
Clarice Turner
I’ve always heard about passive income, but I never really understood how it worked—until I read this blog.
Brian Moten
★★★★★
★★★★★
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