What is passive income? Passive income is income that you earn outside of your efforts.
When you work a full time job or work for yourself as a sole business owner, you only get paid when you work. But when you have passive income you get paid without putting in effort.
For example you might own a storage container that you rent out to someone for $50 a week, that’s $50 that you didn’t have to work for.
But in order to create passive income, you must first put in either invest your money or your time and effort.
For example if you want to earn dividends from a stock or rent from a rental property you must first invest some money to purchase the asset.
If you want to earn income from a website, you must first put in the effort to build it up.
Passive income is great; you get paid money without exchanging your time and energy for it. some forms of passive income pay you 24/7 365 days a year.
You work hard for your money, when you put it into a vehicle that creates passive income you make it work hard for you.
By making more money without putting in more hours, you free up time to enjoy life more.
Below is a list of different streams of passive income, if you know any more, please leave a comment and I will add it to the list.
- Stocks (dividends, capital growth)
- Bank accounts, bonds
- Property (rent, capital growth)
- Rent a room or space
- Storage (rent)
- Sea containers (companies rent it off you)
- Vending machines
- Online (affiliate marketing, advertisements, drop shipping, selling products, subscriptions)
- Make an app
- Buy and rent out equipment
- Peer to peer lending