Wouldn’t you like to work for 8 hours and continue to earn money from that work over and over, again and again? That is basically what passive income is, doing something once and earning a residual income with little to no maintenance. Work once, earn repeatedly. The IRS has three categories for income: active, passive, and portfolio.
Active income is trading your time or service for a wage, what most people do in the 9 to 5 world. If you earn an hourly wage, salary, or commission, you earn active income. Work once, earn once.
Portfolio income is money earned from investments such as dividends, interest, capital gains, and royalties received from property held for investment. Invest, or buy once, earn or lose a percentage. I really don’t like the losing part! LOL
The Best Category Of Income
By far passive income is the best choice but, it takes time and effort to create passive income streams. We all have to eat and pay bills so active income plays its part here. As stated earlier you are trading your time for an income and there never seems to be enough hours in each day. Portfolio income is how most people try to save for retirement but, there is always that risk of losing money as well as earning.
So many of us get stuck in the active income rut. Unless you are in a profession that pays an enormous wage per hour or per job, we always seem to never get ahead. To earn more income you have to put in more time. Days get longer, weekends get shorter. Your family life and health start to suffer. So what is a solution to this madness?
Passive Income Opportunities
With the advent of the internet came the limitless amount of opportunities for “ANYONE“, yes “ANYONE“, to make a substantial amount of money. We are not talking about any get rich quick scheme or scam. These are legitimate ways of making a good living through passive income.
Start writing a Blog (short for weblog). Find a niche you like or are interested in. What trade or profession are you in now? Or perhaps a hobby. Never sell yourself short. You are a wealth of information without even realizing it. Promote products through reviews and monetize them through affiliate links.
Create an ebook or audio book and sell it through Amazon and Audible. Are you a good story teller or perhaps a DIY’er that has great ideas on making or fixing things. Create How-To’s on anything imaginable.
Create an online course. Have you ever trained someone in your previous or current trade or profession? Do you play a musical instrument? Are you proficient with a particular software program? Your insight could be just what helps another individual succeed.
Affiliate marketing combined with blogging is probably the biggest generator of passive income.
YouTube by itself, or combined with any of the afore mentioned passive income streams, becomes a powerful medium because a picture is worth a thousand words – a moving picture is entertainment.
These are all passive income streams. They continue to work for you 24 hours a day, 7 days a week, 365 days a year. No matter whether you are sleeping, eating, out with friends, or whatever.
Learning A New Skill Set
People, in general, are creatures of habit. Most do not like change. As with any worthwhile endeavor, there are new things to learn, perhaps an adjustment in how we look at things. “Anyone” can make a substantial income with passive income but, not without putting forth the effort. It takes time to learn and build out a successful income stream. The great news is it doesn’t cost much to learn. It’s actually free to try and see if it’s right for you. If you decide it is, the cost is less than a cup of coffee a day!
Thank you for reading and if you have any questions or comments please leave them below.