So what if there was a way to earn money with the absolute minimum effort possible? Wouldn’t that be worth something looking into to (as opposed to re-watching the whole season of Game of Thrones again)?
It would be life-changing if you could put yourself in a position where you can earn a lot of money without actually working hard. Unfortunately, while there are thousands upon thousands of companies that claim they can help you do this, few of them actually deliver on those promises. This is because most passive income opportunities are scams. They lure you in with the promise of easy money, but either end up costing you a lot of cash or taking much more time and effort than you thought.
The only way that passive income is effortless is if you were lucky enough to inherit a profitable business from someone else who put in all the work in setting it up. Even then you would want to learn how to keep the business successful. The Internet is full of stories of people who were given a successful business to manage but because they didn’t want to work at it, those businesses became failures within years or even months.
So, if you are looking for legitimate passive income opportunities that will help you achieve financial freedom, then you need to look for companies that do not promise overnight wealth with little-to-no effort on your part. The Internet has made passive income a reality for millions of people, but only if you’re willing to put the work in up front to make it a success..
Types of Passive Income Opportunities:
When you start your search for passive income opportunities that can help you meet your financial goals, you are going to find that they fall into three basic categories.
- Retirement investment income opportunities. This is the most common type of passive income generated today because millions of people have retirement accounts through their employers. They make a deposit into their account through salary deductions (the passive part). Their contributions grow throughout their employment, providing them with monthly payouts after retirement. Usually, these opportunities are great for supplemental income after retirement, as they often don’t grow large enough to completely replace a full income. However if you’re really smart and hit the max 401k contribution limit every year, you’ll have just a TON of money later on in life. If you haven’t started saving for retirement yet, then you’re really missing out! Even if you start saving for retirement at 30, you’re still going to be much further ahead then the rest of the curve.
- Passive investment income opportunities. This is income that is created when money is invested to make more money. Essentially, for these opportunities, you have to take money from your savings or from a loan and invest it in a business that will allow you to generate passive income. You are using money to make more money, but you have to have those startup funds before you can start your business.
- Passive residual income opportunities. This is income that is generated through skills and includes writing books, musical compositions, website building and inventions. There is rarely a need for startup funds because these products are those that can be created for free or nearly free. They earn income through royalties and automation. Once automated systems are set up or your product is sold, you don’t have to do anything to receive the income. You do, however, want to keep finding customers to keep increasing your amount of residual income.
Passive Income Examples:
Again, there are many companies out there that will tell you they have the best passive income system ever, but most of them will turn out to be pyramid schemes and multi-level marketing plans that only work for some people involved in the “business.” Your best bet is to search for passive income opportunities that have already been tested and proven to work for anyone willing to put in the effort. Some examples of these passive income streams include:
- Mutual funds – these are investments that allow a group of investors to pool their money and give it to a portfolio manager (for a fee). The manager then invests the money I bonds, stocks and securities according to the wishes of the investors. They are passive because you don’t have to do anything but turn your money over to the manager. Chances are, if you participate in any type of retirement fund, you are already investing in mutual funds.
- Stocks – these are shares of ownership in a company. Again, as with mutual funds, you can simply give the money you want to invest in stocks to a financial expert and let him or her do all the work. You can be more involved if you choose, but if your goal is to create a passive income stream, you probably want to hand the day-to-day management of your stock investments to someone who does it for a living. Then, you can sit back and enjoy the dividends when you need them.
- Online marketing – this is a passive income business that is growing in popularity with the advent of the Internet. There are many opportunities to help you get started. You can write articles that, once they are published, pay you every time they are viewed. You could setup a website that earns you a residual income every time one of the readers clicks on an advertisement embedded on the page (click here for an awesome tutorial on how to setup your own money making blog). You can become a marketing affiliate by selling product offered by other sellers and earning a commission off every sale. You can make peer-to-peer loans that pay you interest as they pay you back. There are virtually tons of different work from home jobs you can try.
- Rental properties – when you live in one house and rent out others, you earn a passive income through the rent payments of others. The key to this opportunity, though, is to make sure your rentals stay occupied. Otherwise, you could end up with payments on more than one property and that could result in financial disaster.
- Vending machines – You work out agreements with local businesses to place vending machines at their locations. They get a percentage of sales, but you get the bulk of the income. There is very little overhead and a huge upside. You do have to keep your machines stocked, but if you put in that minimal amount of effort, you can make a lot of passive income this way.
Passive income opportunities are actually everywhere, if you just know where to look. Sometimes, the best way to find a business that works for you is to study people who are already making it work for them. So, do your research, find someone you want to emulate and get started making that passive income you have always wanted.
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