Passive income is probably the newest and most chased money attraction out there. It provides the option for us to be standing on a beach on a perfectly set island and our bank accounts growing bigger by the minute. Sounds amazing, right? Well, it is not that simple and there are plenty of different variations to it, so here is some basic information how it can be achieved and how your lifestyle will change.
What is Passive Income?
The difference between active and passive income is pretty simple. If you have a job, you go from 9 to 5 and you actively exchange your time for money, then you are receiving an active income – even if you are a businessman and you do not work for anyone else – if you are exchanging your time for money, it is not passive. Passive means doing (almost) nothing and your bank account growing bigger.
How We Can Get Passive Income?
If you are already hooked up, it probably means that you are already searching how you can get rich fast by a passive niche. When starting a passive income, usually there is a lot of work to be done in the beginning or a big monetary investment upfront.
Different Passive Incomes
Probably the most famous Passive Income is housing, renting, property. It involves buying a certain property (house, apartment) and getting paid by a rent. It means that after you have purchased the property, you are not exchanging your time for the money you receive.
Buying stocks and getting dividends – simple enough – having enough money to purchase good stocks and most of them are paying you because of that.
If you cannot create a product or invention upfront you can get involved with affiliate marketing – market other people’s products and when customers make a purchase you will get an incentive which is a paid commission. You are not involved with producing the product or with customer care, which makes it very lucrative.
Create a course online, an app, write books – the initial work could be serious, but the aftermath can provide you with an income for life. Especially with the internet opening so much space and opportunities, having an online passive income is the business of the 21st Century.
Passive income can be as simple as cash back from food vending machines, or video games where people purchase their lunches or enjoy some form of entertainment.