Ever heard of passive income? I’d be surprised if you hadn’t because it’s become quite the buzzword. Who wouldn’t want to earn an income everyday while doing nothing!? Unfortunately, it’s not quite that simple, but it is possible to create multiple streams of passive income. Curious about how to create passive income? Download my free starter kit and take action today!
What is Passive Income?
Let’s start off by defining what passive income is, exactly:
“Where a person continuously generates money from any source or investment that does not require a direct involvement, such person is said to acquire a passive income.” – US Legal
To explain this further, there are generally two types of income generation, active and passive. The most common type of income generation is active income, or trading time for money. This means you are providing your skills and services to someone and getting paid for your time. For example, a mechanic goes to work, clocks in for the day, and clocks out when he’s finished up. Pay received directly correlates to the hours worked, nothing more.
Passive income, on the other hand, generates an income without your direct involvement. This can be done any number of ways, but an example would be owning a rental property. As the owner/landlord, you collect rent payment from your tenants every month without a personal time commitment. You can visualize passive income as a money making machine. You may have to assemble all the parts, but once complete, you start collecting.
Why Passive Income?
What makes passive income so great compared to active income?…Freedom! With your money making machine in place, it frees up your time to do something else. Create enough of these machines and you might be able to quit your day job. Create even more of these machines and you’re on the path to generating great wealth. Now, freedom may sound great, but let’s see what this can equate to:
- Being your own boss
- Unlimited income potential
- 24/7 income
- Flexibility
- Unlimited vacation days
- Tax write-offs
- and more!
How to Generate Passive Income
Sources of passive income are created in two different ways, time or money…or likely a combination of the two. For instance, someone with large amount of capital could make a downpayment on a large apartment complex, giving them an immediate source of passive income. Someone without capital could spend time creating a product that would eventually generate a passive income. For the purposes of this article, we’re going to focus on product creation, because not everyone has a mattress full of money!
To get started building your first money making machine, I’ve included a link to The Passive Income Starter Kit. This free kit will help you learn more about passive income and the exact steps on how you can get started! Subscribe today and gain access to this kit and many more to come.
Passive Income Ideas
If you’re at a loss as to how you can create a passive income, here’s a list of ideas to help get you started. These all will have varying levels of success, but the important thing is you start brainstorming all the great value you can bring with the world!
- Rental property
- Lending money – like LendingTree
- Savings account (with higher interest)
- Index funds
- Stock investing
- Stock photography
- E-books
- Youtube videos with ads
- Online courses
- Create an e-commerce store (like Shopify)
- Rent out available bedrooms (Airbnb)
- Build an app
- Affiliate marketing
- Membership website
- Sell advertising space on your website
- Laundromats / vending machines / games
- Create a product
- Buy a business and delegate the work
- Design t-shirts, mugs, etc.
- Create a podcast with advertising
Creating a good source of passive income may be difficult, but it’s worth working towards. Over the next 5, 10, 20, 30+ years, do you think you will have knowledge worth sharing? As long as you practice continued education, there’s no doubt you will acquire great knowledge and with that, great wealth.
Started your own stream of passive income or plan to in the future? Leave a comment below!
*Some of the links above are affiliate links, which means that if you choose to make a purchase, I will earn a commission. This commission comes at no additional cost to you. Please understand that I have experience with all of these companies, and I recommend them because they are helpful and useful, not because of the small commissions I make if you decide to buy something.
