WHAT IS PASSIVE INCOME?
Wouldn't you like to make money while you sleep? Who wouldn't? Most of us make our money with a standard nine-to-five type of job, and we do the best we can to pay our bills, save what we can, and invest in our future when we can. How do we establish a platform for financial stability beyond our active income? The answer is passive income!
Passive income is income resulting from cash flow received on a regular basis, requiring minimal to no effort by the recipient to maintain it. More than just a typical side hustle, passive income offers a channel to drive taxable income without the active investment of your time.
WHY IS PASSIVE INCOME BENEFICIAL?
Long story short, your time is valuable. In fact, your time is the most valuable asset you have, as time, unlike money, can't be earned back. Creating streams of passive income provides you the ability to detach your earning abilities from the limited amount of time you have. Passive income can also be a springboard to generating long-term, sustaining wealth. Remember, the average millionaire has seven different income streams. Adding a form of passive income can be a lucrative revenue stream for you. Here are three types of passive income streams you can invest in right now!
1. Make Money Online
There are a ton of viable options that an help you establish a stream of passive income online. You can generate revenue by starting a blog that hosts affiliate links, monetizing a platform like YouTube, completing online tasks, creating an online course, e-book, or guide, and drop-shipping.
Investing is not just about stashing money away for a rainy day, it is about having enough capital to generate income. While you do need to have money upfront to invest, there are numerous ways to help your money grow through an investment. You can , , , or . If you're looking for some of the best places to invest you money, check out this list from The College Investor!
3. Real Estate
Similar to investing, owing a rental property requires an upfront sum of money to purchase the property. However, with rental real estate ventures, the property returns a cash flow in the form of rent money and provides certain tax advantages that other forms of passive income do not. If you do not have the capital to get started in investing in real estate, a great way to dabble as a limited owner is by crowdfunding through platforms like . With real estate crowdfunding, you can become a limited owner in real estate for a smaller amount of money upfront.
WHAT IS THE CATCH?
Not to be confused with a "get rich quick scheme," passive income does not happen overnight. Establishing a viable source(s) of passive income is an investment of not only your time,but often your money as well. If you are just starting out, it really isn’t likely that you will generate a substantial amount of passive income. However, if you can maximize your active income through continuing to increase your primary salary, you will find yourself having excess income that you can reinvest to generate additional income streams and earn more money through passive income streams.
Start maximizing your earning potential with careers at MAU!