While I will always consider multiple streams of income to be the most efficient way to build wealth, passive income is, hands down, the best type of income!
Why I love passive income!
Here’s why I love passive income: YOU MAKE MONEY WHILE YOU ARE FOCUSED ON OTHER THINGS! YEP! THE BEST!
Imagine being on a vacation and making great money while you are swimming with dolphins in some tropical location with your family. That is what passive income is. It is income earned passively. The most talked about passive income is real estate investments like rental properties. You really only work when you are finding tenants, doing repairs, preparing the property between renters, etc… The rest of the time the income earned from your rental properties is passive income.
Ideas for creating some of your own:
While rental properties may not be in your immediate future, there are several types of passive income that you can start focusing on immediately. Some of these include:
- Stocks that pay cash dividends. If you are unfamiliar, some stocks pay dividends. There are stock dividends which are paid by increasing a shareholders number of shares (issuing additional shares) when a company makes money. Cash dividends are paid out of a company’s earnings in the form of cash to shareholders (often called investors).
- Selling information: Perhaps there is something you are really good at and you can create an e-book, audio or video course, or something along these lines. Once you actively create the product, sit back and collect your passive income from the sell of your product. Courses can be distributed and sold through sites like Skillshare, Coursera, and Udemy.
- Affiliate Marketing: Bloggers, website owners, and social media “influencers” have a platform to endorse products and be paid an affiliate partner fee. It is important to only endorse products you would purchase yourself. It is so disheartening to see celebrities sell out and endorse crap products. Don’t tout being healthy, eating organic, only using healthy/organic household items, and working out then endorse some crap get thin fast scheme product full of horrible ingredients that are known to cause cancer. That’s just sad and yet so many celebrities do it all the time. Be honest, endorse good/quality products, and the passive income will flow without compromising your reputation/brand. In fact, you will realize more followers and loyalty by being honest and respectable. Amazon has a great affiliate program. You can also look into MaxBounty (currently my personal favorite).
- Savings Account: Savings accounts earn interest. Find the highest yielding account if you have money to sit on.
Tell me about your passive income successes and failures.
Of course there are many others! I would love to hear about your successful passive income ventures. I also highly recommend you read Rich Dad, Poor Dad by Robert Kiyosaki.