The Basics of Passive Income
After a particularly rough day at work, we have all had that thought: wouldn't it be nice to have enough money coming in every day to live on without having to put in a full workday? It certainly would, but this is just a dream. Right?
Actually, with passive income, it could be a reality for you.
What Is Passive Income?
To put it simply, it is money you make even when you are not actively putting in working hours. Passive income is income made from product or services that you create once and then continue to make money from. For example, you might create a printable design, list it on Etsy, and make money whenever someone pays to download it. While there may be some maintenance needed on the products or services from time to time and promotion may be needed to drive sales, the day-to-day effort is considerably less than with an active income stream.
Common Misconceptions About Passive Income
When people think about passive income, they think about making money without working at all. However, passive income does take work--just not as much as an active income stream does. First of all, you cannot just create a handful of products and expect them to be profitable for years to come; new products will need to be created. Then, as noted above, sometimes the products must be updated, and getting customers often requires promotion. So you need to expect to work for your passive income.
Also a common misconception is that you can get your passive income streams going to the point that you will not just be making enough to live on, but that you will make enough to travel the world, buy whatever you want, and retire rich. Is this possible? Yes, and there are those who have done it. But they are the outliers, and if this is your goal heading into your passive income journey, you will likely become discouraged and quit before you see profits.
Ways You Can Bring in Passive Income
To make money through passive income streams, you do not need to give up your primary job. While passive income does take time and effort up front, it should always be able to work itself around another job. Here are some ideas for ways you can earn passive income:
If you are looking for ways to bring in extra income with minimal work, these passive income options might be right for you.
Freelance writer and editor with an education background, working from home and living abroad.