The initial downtime you put into passive income can be as involved as starting a blog or as simple as logging into a robo-advisor platform and investing $100. Instead, you plant seeds so your money will grow, even when you’re sleeping or at the park walking your dog. There’s no magic trick that turns your time directly into money. Examples: What is and is not passive income Active Side Hustle IncomeĪ course on your area of expertise that you sell onlineīuilding a program you can sell over and over There are many times when these investments should get some allocation of your portfolio, but investing like this is not a stable passive income strategy unless you are earning yields or grit bot trading. The difference is, are you getting a cash-on-cash return, or will you only see a return if you sell the investment?Īlso, investments like cryptocurrencies and commodities are reserved for price speculation. On the other hand, investing in stable companies that throw off cash in the form of dividends is definitely a passive income strategy. Why? Because stock appreciation is not income. I do not consider stock investments for capital appreciation only to be passive income. For consulting to be passive, you’ll need to build the practice with other people, and be able to step away from the work eventually. ❌ Consulting.Ĭonsulting is just another job – perfect for a side hustle, but not exactly passive. You have to evaluate the passive income opportunity in its long-term state for you. Be careful here, because remember, in the beginning, a passive income stream could require more time, money, or work than it produces. If you need to continually invest the same (or more) amount of time for the same amount of financial output, the venture is not passive. Side hustles are usually active, and maybe with systemization, they can turn into passive income streams. Side hustles are great ways to make money, but not all side hustles are passive. The whole idea of passive income is to supplement, augment or get you out of your job so you can retire, travel or spend more time with loved ones. Passive Income is all about protecting your time. You may not have millions or even thousands to get started – and that’s okay! Because you can invest as little as $10 into a company named Fundrise and start generating passive income asap. When you look at the wealthiest investors across the globe one of the most common assets they own is real estate. The best way to get started making passive income in investing in real estate. I’m going to break down passive income, and show you the steps I took to create my passive income streams, but if you want to get right to the ideas, you can. You just need to know where to start and decide what resources you’re willing to expend for your passive income ideas to take flight. If you’re willing to commit your resources to the steps and ideas below, you could be earning effortlessly for years to come. Passive income is a long term choice that requires short term tradeoffs. We’ll come back to this.īuilding multiple streams of passive income has an additional benefit in the short term: it can make you more resilient, and better able to weather economic shocks. The first step is to just build a small nest egg savings account that you can use for later. It requires time, money, skills or all three. The truth is that building a passive income stream usually isn’t passive at first. “Making money while you sleep” has a nice ring to it, doesn’t it? After all one of the goals of financial independence is to build wealth that doesn’t eat up your time, so you can enjoy life and do the things you choose to do.
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