We all work hard for our money, but we all wish we could earn money without effort. What many don’t know is that this is exactly what passive income is! Passive income is where you make money while you’re asleep.
To better understand passive income, let’s look at 4 things you need to know about passive income and how you can achieve it. If you just want to kickstart your passive income building – check this premium course hosted by Robert Kiyosaki!
1. Active Income vs. Passive Income
If you’re working for a salary or commission where you get paid for a service, that is active income. Active income does not make you any money unless you do a specific job to get paid.
On the other hand, passive income is getting paid for doing nothing. You don’t put in an active effort to make money! Generally speaking, passive income makes money outside of active income.
It’s so important not to rely only on your salary and instead have multiple income sources. Only depending on one income source is dangerous and can prevent you from becoming financially free.
If you want to learn more about active income and passive income, watch our video Financial Freedom 101 – Active Income vs. Passive Income.
2. How to Earn Passive Income
Passive income can come from several different types of sources. This is a way to double your money, which can become your revenue, with the right kind of investment.
- Company stock and ETFs: Investing in company stocks and ETFs can generate income, especially if the company stocks you buy frequently pay dividends. The sum varies wildly, depending on the number of stocks and the income made by the business. Companies pay cash dividends out of their profits quarterly, and all you have to do is own the stock. Dividends get paid per share of stock, so you can expect a higher payout the more shares you own.
- Property rental income: Renting out property can be a great source of passive income with little effort. Hire a property manager to manage maintenance issues, find tenants, execute lease agreements, etc.
- Create YouTube videos: YouTube is the never-ending source of passive income. You can generate regular income from your YouTube channel with sponsored videos and ad revenue.
- Start a blog: Blogging can help you earn passive income through affiliate links, sponsored posts, book deals, products, etc. If you enjoy writing, find a topic you’re passionate about and make money!
3. It Takes Time to Build a Passive Income Stream
Building passive income takes time, persistence, and dedication. Don’t just jump into any passive income idea; and instead, do some research and find the best one for you.
Many people give up too soon as they want to see instant results. Be prepared to make mistakes along the way, but you will learn not to give up with persistence.
4. Passive Income is for Everyone
You don’t need to be an expert in finances to make passive income. Whether you’re fresh out of high school, a college graduate, or a stay-at-home parent, there’s something for everyone!
Find something you’re passionate about and start today!
If you’ve always wanted to make passive income but haven’t made the initial step, know that there’s no one-size-fits-all approach. All you have to do is get started and learn! For $1, you can get training and learn about various passive income streams. Click here to learn more and sign up for the course hosted by financial freedom superstar – Robert Kiyosaki.