The first step is to understand what passive income is and how it differs from the kind of income you earn working an hourly or salaried job. The differences are key because they point the way to financial freedom. If you want to be your own boss and the master of your own destiny, passive income is the way to do it.
The Differences between Active and Passive Income
Even if you use a different term to describe it, you already know what active income is. Active income is the kind of income that requires you to actively engage in work for a set period of time before you earn it. Freelance work also qualifies as active income. Freelance workers only get income if they complete the work. If they get sick or unable to complete the work or task, they earn nothing.
Why Passive Income Matters?
Passive income opens up possibilities that might not otherwise exist. It allows us to earn money in ways that do not require hours of additional effort on an ongoing basis – and that’s huge. If you find that working long hours translates to having only a limited amount of time with your family – or that you’re passing up opportunities to do what you love – then passive income can make the difference.
Passive income matters because it’s the kind of income that can easily supplement your active income – and eventually, it may even replace your active income. Your earnings with active income are limited based on the number of hours you work, as well as things like your education and work history.
There are no such limitations on passive income. You have complete control over it, which means that nobody can cap it. The fact that you can earn it while you are sleeping, playing with your kids, or on the golf course means that you have the freedom to do what you please with your time.
Benefits of Passive Income
- Passive income can lead to financial freedom. When you earn passive income, you can earn it any time of the day or night, and from anywhere in the world.You do not have to be tied to a particular job or schedule. Once your passive income streams starts, the money will flow into your account.
- There is no limit on passive income. There is nothing preventing you from setting up a hundred different streams of passive income if you choose to do so.
- Passive income can come from variety of sources, which means that you can choose the options that appeal to you the most.
- You can be your own boss. When you set up passive income streams, you don’t have to answer to anybody.
Ways of Passive Income Streams
1- Writing an E-Book
Writing an eBook can be a great passive income stream if you have some abilities to write about different topics.
I think it’s important to be honest about the amount of work required to write and publish an eBook. Passive income does not start out passive. You must put up the work up front. Once the stream of income established, it becomes passive.
2- Marketing Affiliate Products
If you have spent any time at all learning about earning money online, you have undoubtedly heard about affiliate marketing. In case you haven’t, let me briefly explain. Affiliate marketing involves marketing products (usually by putting links on your blog or website) that were created by other people. In exchange for displaying the ads, you get a percentage of the sales that happen as a result. Sometimes you may get paid only if there is a sale, while other affiliate offers may aim at generating leads and pay you for each person who clicks on the ad.
3- Create and Market Mobile App
Creating and Marketing Mobile app is another way create passive income stream. If you have any app idea, just hire someone to build the app and market the app on any blog.
It’s always going to be a bit of a crapshoot, but if you take the time to market it on your blog or on social media, you might be able to sell enough copies to earn a steady stream of income.
4- YouTube Channel
Videos are one of the most popular forms of online content. In fact, most people would prefer to watch a short (two or three minute) video to reading a couple of short blog posts, even though the time invested would be approximately the same.
5- Create Online Course
Creating an online course can also be healthy income stream. If you are capable to teach your skills, just create an online course and upload it on Udemy or any other platform will benefits you a lot.
Must Read Indoor activities for children aged 6 to 15
