Passive Income is Best
In the old days, one average salary could feed, shelter, clothe, and entertain a family. Today though, inflation, corruption, and financial mismanagement have put us in a position where we often find ourselves in pursuit of more “hustle” to make ends meet. Many families have two or three jobs just to cover basic expenses.
I’m no financial guru, and while my own income streams are still growing, I have studied and researched much about how to create a side hustle to make residual passive income.
What is passive income?
Passive income comes from royalties, rents, dividends, or residuals. You work up front or invest, and over time, your investment pays you back.
Earnings an individual derives from a rental property, limited partnership or other enterprise in which he or she is not materially involved. As with non-passive income, passive income is usually taxable; however it is often treated differently by the Internal Revenue Service (IRS).
What would that passive income look like for you?
1. Rental properties – If you have some cash to invest in rental properties, and enough to keep up the properties, you can make enough to pay for your investment, and then make a profit.
2. Royalties – If you write a book, record music, and sell it, either through self-publishing, or a publisher or record label – you can collect income each month from that source.
3. Investments – investing cash in a mutual fund, or even riskier stocks can bring you dividends each month.
- Online business – this could be many things. Often, people create products to sell – they could be real tangible items, virtual courses, subscription services, or more.
Passive income is not free and easy money – it does take work, time, and investment to build these sources – but they can pay off later with minimal maintenance, if done well.
Ultimately, my goal is to generate a full time income from passive income. I’d like to be able to “retire” from working to build someone else’s dream, and work 100 percent building my own. I’m not there yet, but we’re headed there!
I highly recommend following Pat Flynn at Smart Passive income for some ideas on how to make it happen for you!