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As we already mentioned, there are many ways to make money online. With the explosion of technology, people have found new ways to make extra income. One of the most popular ways to do this is through what’s been coined as “passive income.”
With passive income, your time is spent creating the product or service that makes money for you, and then you let it produce revenue with no additional effort from you.
Most people get confused about how to achieve this goal of making money passively, but I’m going to run through some examples and explanations. After reading my article, you will know exactly what it takes to earn big rewards without doing much else!
I’ll also talk a little bit more about why achieving this dream is so tough in our digital age. Why can’t we all just sit back and watch our incomes grow? That’s not quite true though, is it?
There are two major reasons why being able to enjoy this kind of lifestyle isn’t within everyone’s grasp. The first one is cost, and the second is convenience. We need to be aware of these if we want to keep dreaming.
A sustainable income is one that will always be there when you want it, in amounts that satisfy your needs. It’s not dependent upon something or someone else – it goes up and down according to changes in your life.
Something like the salary in your job can fulfill your need for money, but only if you are constantly working to ensure that yours stays ahead of what you need to survive. If you decide one day that you don’t want to work anymore, chances are you’ll find that you have no way to meet your basic needs.
I know from experience — I used to have such an income. My husband and I had a two-year experiment where we paid ourselves a weekly “survival wage” so we would never go hungry. We still lived richly, but we didn’t depend on our paychecks to do it.
After we spent all our savings on our rental house and bills, what was left over went into our self-funded retirement account, which has done just as well (if not better) than any investment option available to us at regular banks.
In fact, because we invested in index funds, it keeps changing every year!
We realized that a steady, consistent income that we control how we use is more important than a large paycheck. It gives us freedom, security and hope.
A lot of people get stuck in a mindset where they feel that they have to take some sort of action to make money, or at least contribute something towards it.
This can be tricky if you’re not used to working hard for your paychecks, but it is necessary if you want to achieve true financial independence.
As powerful as it may seem, having a high-paying job is no longer a prerequisite to wealth.
With all sorts of ways to generate constant income outside of work, just because someone doesn’t have a paid position next to it doesn’t mean they can’t earn enough to live.
There are two main types of income that we often refer to as passive, but what they really mean depends on how you define “passive”.
The first type of passive income is what I like to call tangible passive income. Tangible passive incomes include dividends from stocks or interest on loans.
These types of incomes require no additional effort to keep earning their dividend or receiving their loan interest reward, which makes it easy to preserve the stream of income.
But this kind of income isn’t very sustainable. It works by things happening outside of your control- such as an investor dropping their investment portfolio or someone else being awarded the loan that rewards its holder with interest.
The second type of passive income is what I would categorize as intangible passive income. These are earnings that don’t stop coming even when you do!
This includes things like royalties for software you create or copyrighted material you publish online. Or perhaps you have a small business that produces a product or service that people enjoy and thus are willing to pay money for.
Many people talk about how to achieve financial freedom, but few actually do. What is financial freedom? It’s living free of need, or at least as free of need as possible.
Financial freedom isn’t buying a boat or a house and sitting back and watching your net worth grow. That’s not what I mean by financial freedom.
I think it happens when you make enough money to satisfy your needs for the rest of your life. You’re investing in yourself by educating yourself and learning skills that pay off, you're investing in our society by paying into a good pension system or charitable organization, you're investing in your future career by developing your talent and skill set.
You can't really say that someone who spends their lives working outside the home has invested in themselves unless they also invest in self-education and grooming their professional persona.
So, financial independence means spending less than you earn, and if you spend more than you earn, you aren't independent; you are dependent.
I have experienced firsthand how easy it is to earn significant amounts of money through investing, t raking in revenue for different websites by writing about business strategies or offering services that help people do their jobs more efficiently.
By doing this, you don’t need to be actively involved in earning a paycheck every week-you can keep your life outside of work as normal as possible!
I've been able to supplement my income over the years by investing in companies and marketing products to them. It has never felt like work because I'm invested in these businesses that I help make profits for.
So why not let other people enjoy the same benefits? By letting others bring in the income for you, you get to focus on other things — your hobbies, family, etc.- while they take care of the rest. It's an efficient use of your time and energy.
A few years ago, it was impossible to find many success stories of people who made significant amounts of money from investing. This is changing though!
There are now an increasing number of people who make enough profit off their investments to pay their bills while also filling their coffers with wealth.
This has spawned an ever-growing crowd of individuals looking to invest in the market. The more investors there are, the better it is for you as an individual investor.
The more people that exist, the higher your chances of finding quality investment advice becomes. By having more people, it creates a competition for best services which can only be good for you as an investor.
It’s hard to know if these strategies will work for you or not because no one but you knows yourself. What works for someone else might not work so well for you.
Even though it seems like there are never enough hours in the day, you can always find someone with more money than they have to do something new. If you’re passionate about something, start a business or work for free (or low pay) to gain experience before investing in equipment and materials.
The easiest way to begin passive income is by offering your services to others. Starting a website or mobile app that you can sell advertising space on or access to products or services is a great way to make money while also gaining knowledge.
By creating content people are seeking, you will attract targeted traffic that will support your site or app. People are willing to share their experiences via blogs, videos, and other types of content so starting one is a great way to earn some revenue.
If you're more creative person, consider designing clothing or housewares or even making your own furniture! Inexpensive tools and online tutorials can be found at garage sales and through YouTube how to's. Once you've mastered the art form, start producing your goods and sharing them online.
It is important to consider the source of your income when defining what it is, how much money you make from it, and if it’s passive or not. Just because someone else has done something doesn’t mean it’s good or effective for you!
Just because somebody says they made X amount of dollars per month working outside the house does not mean it’s a good idea for you. Part of that depends on your situation — are you able to do things like sleep, eat, and breathe work at times? If so, then by all means, try it out.
But there are other ways to make money beyond just putting in long hours at the workplace. And although some people may feel motivated about their “passive” career, most find it hard to put in the necessary time needed to get results.
It can be difficult to know which types of activities are truly sustainable and motivating for you. What works for one person might not work for another. You have to look at yourself as a person first before trying different styles of income.
What would motivate me could be totally meaningless to you. You have to know yourself well to determine this. - Paraic
This article will talk more about how to identify if an online business model is really passive and why it matters.
