Passive income is quite the interesting topic, if you like playing with money. Questions always come up as to what passive income actually is. The real definition would be, income that comes in without any active effort to obtain in, or maintain it.
Usually, when someone claims that they are making passive income, its not really fully passive. But, something more along the line of semi-passive, for example, something that only requires a few hours a week to maintain that still brings in a healthy earning.
Creating a Passive Income Stream
Usually to create a passive income stream, it requires an initial effort that takes more work or time compared to regular work, or a large initial investment. You may have to work 3 times as hard then usual to create a passive income stream that pays less than your regular income. If you maintain this initial effort and are extremely persistent, you can increase your passive income to anything you desire, and then sit back and reap the benefits!
This is why so many people cannot claim that they have a passive income. A lot of people don’t have the drive to put in the initial effort. I love the saying, “do things people will not, so that you can do things people can’t”.
Passive Income Strategy and Ideas
There are many ways to create passive income. Il outline here, my personal passive income strategy. I have diversified my passive income sources, which I recommend you do as well. Diversifying your passive income sources can work to your benefits. For example, if you lose one source, at least you still have the others. The other reason why diversifying is good, would be in the case of coming across a passive source that is more lucrative then the others, that way you can channel your energy and focus on this one source to maximize it.
My passive income sources consist of dividend investing, real estate, and online business. These sources work the best for me personally. You will need to experiment with a few sources to find the proper blend that’s best for you.
Here are some great sources to get started on:
- MLM (multi level marketing)
- Outsourcing business
- Online Business (product creation, affiliate marketing, ppc)
- Land lording
- Smart passive business plan
These are just a few example off the top of my head. I will get into a lot more detail in my up coming posts. This is my very first post in the passive income category on my new website, InvestorChamp.com. Make sure to check back frequently for all kinds of investing tips coming up!