Passive income is earning money without trading your ongoing time for it.
But just because the income stream doesn’t require maintenance doesn’t mean that it won’t require effort to get started.
The reality is that many passive income streams do need some sort of upfront investment – whether it’s time or money – to start and develop.
Related: I always find the best way to understand a new subject is to learn everything you can about it. Grabbing a few books on the subject is my favorite way to learn more. Here are the best passive income books to create passive income streams that work for you and your family. With these passive income books, you can start developing your knowledge on the subject and learning more about how to implement passive revenue techniques on your own.
There are two basic types of investments required for most passive revenue methods:
- The investment of your time. Putting time into creating and developing the income stream is one way to get started earning passive money. Some passive income methods, like online income streams such as e-books or courses, require you to put time and effort into creating the revenue stream then provide you with passive income after it has been established.
- Monetary investment. Other passive income streams may require you to put in an initial financial investment upfront to get started. These methods, like stock market or real estate investments, need you to put money in to get started, then require little to no ongoing maintenance once the stream is created. If set up correctly, you’ll earn your upfront investment back and continue to earn additional income on the revenue stream.
Passive income has so many amazing benefits!
To start, it is a great way to supplement your current salary.
But some investors take passive income to the next level and replace their current salary with more passive revenue methods.
Serious passive income earners can make money without working a traditional 9-to-5 job at all.
Whether you decide to use your additional income to supplement or replace your existing salary, earning passive income is a great way to:
- Increase your family’s overall wealth
- Enhance your retirement savings, even allowing you to retire early
- Protect you from financial hardship if you lose your job
- Increase your savings and reduce your debt
- Provide an additional source of income that could move with you into retirement
- Help you save for large purchases or future investments, like a new home or your children’s college education
- Replace your current salary with an ongoing stream of revenue
When considering ways to add passive income into your family’s financial plan, it’s important to remember that passive income is not a get rich quick scheme.
Any method of passive revenue will require some sort of investment in the beginning.
Instead of earning you instant money, passive income is a long-term money-making solution to enhance your overall plan and provide additional money for your family in the future.
Different Types of Passive Income
When deciding how you would like to start earning passive income, it’s a good idea to do some research about the different types of passive revenue. Passive income come can be earned through a variety of tactics and methods, like:
- Investing. One of the most popular ways to start earning passive income is by investing in the stock market. Long-term investing can create a great income stream that can help bolster your retirement and earn additional money for the future. Within this revenue method, there are a variety of tactics you could use to start earning a passive income, like setting up a 401k or Roth IRA to save for retirement or purchasing individual stocks to earn additional revenue.
- Real Estate. Another tried-and-true method for earning passive income is by investing in real estate. Rental properties can offer a steady monthly income, but may not be as passive as you would like unless you outsource the maintenance and upkeep. Other real estate investing methods, like Real Estate Investment Trusts, also known as REITs, can also provide you with a passive revenue stream after an upfront investment.
- Online passive income. Thanks to the internet, there are several different ways you can earn a passive income online depending on your skills and interests. Blogging, YouTube, affiliate marketing, and ecommerce are all proven methods for earning money online that could provide you with a steady passive income if they’re done correctly.
- Passive business ideas. While not all business ideas can provide you with real passive income, there are some business concepts that are perfect for earning a more passive revenue. Rental businesses, for example, require an upfront investment and little maintenance thereafter, allowing you to earn money without extra effort.