31 Smart Passive Income Ideas That Actually Work _ Ways to get money, Smart passive income, How to g

To understand the real meaning of passive income, you must first know what active income is.

Active income is what most of us make. We go to work every day and give up our free time in exchange for money. If for any reason, we don’t go to work, then we don’t get paid. This lack of income can become a massive problem if we don’t have any other money coming in, while having bills to pay every day.

Passive income is money you make without needing to actively work for it every day.

Let me be clear: as much as dreaming is nice, and some residual income opportunities require less work than others, most passive income ideas need you to put in some (or a lot!) of effort initially.

But the amazing thing about passive income is that no matter how much work you have to put in upfront, you will reap the rewards for years to come without having to sweat for your money all the time.

If the only way you have to make money is to go to the office, you will never be able to quit!

Passive income allows you to put effort today into something that will repay you every single day of your life.

And once the amount of passive income you can generate equals or covers more than your expenses, you can stop working entirely.

Why Passive Income?

Passive income for me means just one thing: freedom.

This quote from Warren Buffet sums up my reasons for pursuing it:

“If you don’t find a way to make money while you sleep, you will work until you die.”

Passive income means having more time to do all the things you really love: spending time with family, traveling the world, and enjoying a flexible schedule.

What I love about passive income:

• It doesn’t depend on how many hours you work: once your revenue stream is set up, you can make money with little work needed to maintain it.
• It requires you to put in the work upfront, but you will then be able to generate revenues day after day!
• You will have more time to do what you love while still making money and paying your bills.

And even if you are not dreaming of quitting your day job, it’s never a good idea to depend on one single income stream. Your job isn’t 100% safe, and generating money passively will give you more security.

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But there is one thing I want you to remember that I learned during these years:

Passive income is not EASY: it takes time and hard work to build. Whether it will come from a product or investments, you need to have the motivation to create it in the first place!

But if you put in the hard work and do your research, it is possible to make money while walking in the park or sipping a margarita on the beach.

31 Best Passive Income Ideas

• Invest money you already have
• Rent out things you own
• Get paid for things you already do
• Create an online business

Below you will find all the passive income ideas I researched over the years (including the things I am doing today to build my own revenue streams).

Some of these passive income strategies require more work than others upfront, and some come with financial risks that you will have to evaluate before jumping in.

I classified each money-making idea by:

INITIAL INVESTMENT: The amount of money you need to invest to generate a significant income.
RISK: The risk you will need to take (including the danger of losing your money). This will also depend on your risk tolerance.
TIME: How much time will you need to put in, which could be research time at the beginning or actual work to set up your passive income stream?
MONEY GAIN: Income potential. This is based on average. Every passive income idea can generate an amazing gain (or very little if poorly executed or dependent on external factors).

This score, of course, is just based on my personal views and experience.

But the question you need to ask yourself is:

How many people will commit to learning how to make money through passive income?

Take action. Just do it!

Choose a few ideas that sound interesting to you and try them out! If you don’t start to create passive income now, you will never escape the rat race to live the life of your dreams!

Invest Money You Already Have

Investing is the most straightforward form of passive income and doesn’t require much day-to-day effort.

If you can save money, or you already have a substantial amount of funds sitting in your bank account, there are plenty of passive income ideas for you to choose from.

1. INVEST IN DIVIDEND-PAYING STOCKS

INITIAL INVESTMENT: 10/10
RISK: 9/10
TIME: 4/10
MONEY GAIN: 8/10

What are dividends?

Dividends are cash paid by a company to its shareholders.

When you invest in a dividend-paying stock, you buy a share of the company, and you literally become part-owner of that business.

As the company grows and generates extra cash that it doesn’t necessarily want to re-invest, it might decide to return some of it to the shareholders in the form of dividends.

And because you own a fraction of the company, you will receive a portion of the cash!

Dividend-paying shares can be an excellent tool for generating income, but make sure you do your research on the shares you buy, as dividends are not guaranteed. If the company isn’t generating enough cash, it can cut or suspend its dividend.

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