Today I want to introduce the concept of passive income. This may be a term that you have heard before. If not, you will be familiar with it by the time we finish.
Many families agree that bringing in some extra money monthly would definitely help their household budget. One of the main reasons I started this page was to help others find ways to earn more money. One of those ways is through finding a job that you can work from home. When you have time, check out the page dedicated to companies that hire virtual employees to work from home. Click here for a list of companies that hire virtual employees to work from home.
Work from home companies may help many people find ways to earn more. The problem is there are only so many hours in the day so for many an additional job is not feasible. So what’s the solution for those that don’t have time, energy, or desire for an actual job? The answer is a phrase that you may have heard called “making money while you sleep” or passive income. Is this real? Is this something the average person can do? Let’s take a look at passive income and how to start making those “dream dollars” while you sleep.
What is passive income
Passive income is money you earn with limited active involvement. To put it simply, its money you make even when you aren’t working. Now this is not magic money that just falls from the sky and we’re definitely not talking about robbing banks. It does actually involve work and we’re not discussing illegal activities, scams or any fraud.
What makes passive income fabulous is there is not equal trade of pay for the time of work. Usually, you put in a little time and work for a large return on your investment. That return comes in the form of income long after the work is complete. For example, you develop a new app or software and you make money ongoing after the work is complete.
Why do I need passive income
When you start making passive income, the goal is to do the work once and collect income over and over. You don’t have to leverage your time in order to make the money. Time is the most important commodity we have. If you can find ways to earn money while you spend time doing other things I say GO FOR IT! This is worth checking out especially when considering ways to make money to retire and stop working actively.
The opposite of passive income is active income which stops when you stop working. If you are a regular employee of a company, when you clock out more than likely your pay stops also. If you write a book to earn royalties, it can make money long into the future. You can sell books and earn royalties even when you’re sleeping. That is the origin of that phrase. Passive income is definitely something everyone should strive to achieve. You want to find ways to earn passive income because of the time and freedom that comes with it.
How long does passive income last
I would imagine that by now your question would be how long can you make passive income? That answer varies depending on the source. Many times the income continues for years and in some cases you can even pass it on to loved ones. For example you could own real estate that earns income monthly that has been in a family for decades. You may need to do repairs or maintenance throughout the years but still minimal effort for the pay off. So in many cases it may not be completely passive but you are still not working an additional job.
Ways to start making passive income
The only question left should be how and where do you start!! If I can make money that I don’t have to work hard for…then sign me up! There are a ton of ways that you can start making passive income even as a beginner. You don’t have to run out and buy an apartment complex or tons of stock to start making passive income. There are plenty of ways to begin earning passive income quickly and easily.
Personally, I have looked at several different ways to start making passive income. Once you master one income stream, you can add another and another and another. Remember, you are not trading time for the earnings. So you can maintain multiple income streams much easier than you could working multiple jobs. Again, there are only so many hours in the day. This is why you don’t want to trade time for money which makes passive income perfect for everyone!
Some of my favorite passive income ideas