Passive income is income which needs little to no active effort from the person who gets it. It’s also known as passive or residual income, when the earning earner spends little effort on increasing the income. Examples of passive income are any voluntary work and rental income. However, passive sources of money haven’t always been so easy to find. Until recently.
The passive income streams, I’m talking about are those that come from investments and profits without actively participating. That’s right. You can make passive income streams without actively participating in them. All you need is some money to invest, some knowledge to guide you and some luck. Now if luck is what you have, then you’re definitely ahead with this one because it’s the most passive way of earning money and yet, with the most possibility for big returns.
One example is cashback sites. For those of you not familiar with them, a cashback site is a site where you can earn money from selling other people’s products. Some of these are major companies, like Amazon, eBay, Best Buy and so on. But there are also lesser-known cashback sites like PayDotCom and Netshops that offer great rewards for every paid transaction.
Another great way to start investing, and a perfect example of passive income that don’t require your participation is by saving. This could be done in many ways, but the easiest is with a money market account or savings account. An individual or a business can open an account with a bank and start investing in a variety of things like stocks and bonds, precious metals, property, etc. A good thing about saving is that there are a variety of investment options that can suit any budget. This can also be a great way to build a retirement fund as well.
If you’re not interested in spending years building up your savings, then you may want to consider investing in an index mutual fund or a high interest stock with a dividend. Even though most people are turned off by dividend paying stocks, there are some that pay very high dividends. Dividends are what makes the active investment portion of passive income possible.
Aside from financials, there are many other services like acting as a personal shopper, a virtual personal shopping assistant, or even becoming a virtual bookkeeper. With the internet, almost anything is possible. There are also many service industries, like accounting, law and banking, where people can gain an income from providing their expertise. There are even services like medical transcription that allow you to receive monetary investment as a service, thus gaining a form of medical insurance.
Other forms of income can come from things such as buying a lottery ticket or investing in a short sale. You can choose the form of investment you’d like to take based on the amount of time you have to devote to it, and according to what you think your investing ability is. For example, if you feel you’re quite adept at investing and have the resources to handle some sort of investment, then you may want to start small with a micro investment like a dollar bill or something of that nature. On the other hand, there are some who would prefer the security of investing in more tangible goods and be able to see their portfolios grow gradually over time. In this case, they may want to get into m1 finance, which is a great way to invest in stocks and bonds and earn regular dividends.
So whether you want to dabble in a few micro-cap stocks, attempt your hand at m1 finance, or get into masonry business, you could make good money with the right effort. It just takes some research and the drive to succeed. There are a lot of opportunities for you to be able to make good money depending on what your interests are, your level of experience, and the kind of investment you’re interested in. This could make for an interesting venture or a very rewarding business endeavor for you.