Understand that passive income defined concerns money working for you, rather than spending time or effort in getting the same.
This is a huge benefit. Life can be short and if one is able to detach time involvement from earning income, things can work out great.
Freeing up time is the goal here. Or maybe not having to sweat for dollars. Or even to be able to do things in life one prefers instead.
Whatever the goal, passive income is the ticket to great change.
Basically, this topic can be thought of as sprouting from one of two branches. Really, there are two forms of passive income that exist.
One may be totally hands-off, such as investing and then receiving stock dividend payments from a big company.
Another may involve work upfront. This work phases out over some time, leaving a purely passive source in place. An example of this is writing a book or e-book and then having it sell over the years.
Both of these two forms result in an eventual hands-off ending. And the reality of freeing up time from these end results can be quite a happy thought indeed!
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Examples Of Passive Income
Now that passive income is defined, let’s go over a few examples that could lead to not having to perform grueling work over time. Setting things and forgetting them, while they grow, is the way. These can take work up front however.
If you want the bigger list, just go over and visit more ways to earn passively.
1. A Website
Purchase a domain after finding a name you like. The advice here is to separate the domain company from the hosting company itself. If ever moving away to another hosting platform, the domain can be pointed there with ease.
Three advantages. One is the cost is usually lower with a specialist domain company. Check out Namecheap’s best Promotions! Secondly, the hosting provider may take too long or charge too much. Thirdly, it’s just so easy for the domain company to just point to the nameservers of the desired hosting company.
Consider your hosting provider at $5.95/month! Build your site on the Cloud today! Visit Bluehost, as they’re known to be excellent in this area.
Spend some time researching a domain name with Namecheap. Think of a topic to write about. Consider your hobbies, personal or professional life. Go with something you’ll feel okay with writing about over time.
Preferably having knowledge before writing works out better. Though one could always learn of the topic while writing. For example, if you want to take up guitar playing but need to learn some things beforehand, consider a domain like “myguitarplan.com”, “theguitarlife.com”, or something else.
A website can be quite pleasant to build over time. If you like what you do, you won’t consider it as much work.
So much cheaper than a brick and mortar built store! That may be the greatest advantage of having an online website.
2. Stock Dividend
Buying a stock can actually earn two ways passively. One is through appreciation, as the selected stable company may incur growth over time, thereby raising stock value.
Another way involves the dividend payment some companies make to their shareholders. These are nice since they usually occur quarterly each year, and at some decided percentage point, like 1%-5% of the stock value held. Be sure the company offers dividends, as many do not.
So if you have $100 uselessly laying about, tossing it into some stable company may be a nice decision to make.
If you’re new to investing, nothing wrong with this quick entrance. Just don’t put much money into what you don’t understand. Look for a stable and known company to hold onto that initial investment.
3. Babysitting
This one is nice for any student. And it’s more passive, allowing study time during the late hours or when the young person doesn’t need much attention.
So one could in effect get paid while studying, helping to lower school costs or other debts for example.
Housesitting is similar. Sometimes people look for someone to watch over and care for their living arrangements, if traveling away for some time.
Dogsitting, catsitting, or even racoonsitting… whatever. Somebody with an animal may need someone to watch while being away.
There is so much downtime with these ways. It can be easy to fill in some of this time with another means of gaining debt relief or money.
4. Rental Property
Find the property. Buy the property. Fix the property. Place the ads. Okay, so this isn’t completely passive. But once the essentials are in place, rental property becomes so much passively earned income for sure.
For the inexperienced individual, please be sure to live close to your first property. It’s just easier to have oversight on. With a little growth over time, perhaps through another property or outsourcing some management help, then you could be further away.
This is just some advice so you don’t sink money into something that may fall apart while having the wrong tenants or some other problem.
Also, the more knowledge you have before buying, the better selection you’ll probably make in the housing market. For example, just one skill involves noticing that job growth is expanding in the particular area. This makes affording your rental needs more possible.
So before buying your rental property, learn about the subject a while.
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