The idea of generating passive income is an alluring one.
It suggests the ability to make money without actively working for it.
This is an especially enticing proposition in today’s economy, where jobs are scarce and hours are long.
But what exactly is passive income? How can you generate it yourself? And what are the pitfalls to watch out for?
In this article, we’ll explore these questions and more.
What Is Passive Income?
Passive income is money that comes from investments, rental properties, or side projects. The aim is to create a steady stream of income without requiring the time commitment of full-time employment.
Proponents of generating passive income are generally supporters of a work-from-home and be-your-own-boss professional lifestyle.
In recent years, the phrase “passive income” has been used somewhat sparingly. It’s been popularly defined as money received on a recurring basis with little or no work on the part of the recipient.
4 Passive income ideas
#1 – Invest in real estate
The purchase, renovation, and sale of properties are time-tested ways to make money. You can buy a rental property or other real estate with the aim of making profits through rent payments, which is called passive income.
#2 – Develop an online business
Two distinct paths exist for people looking to develop an online business. One is to start your own blog, website, or online store. The other path is to work for someone else who has what is called a lead generation business.
#3 – Become an Amazon Associate
The Amazon Associate program is simple. You simply create links to products listed on Amazon. If someone clicks on your links (and then buys what you’re advertising), you receive a portion of what they spent.
#4 – Create an online course
There are many different ways to get your information out there these days. One of the most popular is what is called an online course.