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3 Ways to earn Passive Income

I am going to define it the way I see it. Passive investing is making money with out you working. Meaning when you sleep you making money. When you at the movies, you making money. When you’re out to dinner you making money. When you’re out playing with the kids, you making money. When you’re on vacation you’re making money. When you’re at the gym you’re making money. I can go on and on with this, it is income you are not working for.

When you go to work that is active income. A W2 is active income. We are taught from a young age to find a job. That means we have to work for our income. No work no money. No one taught me to put money aside and invest it. Well they do teach that it’s call a 401K. How are those doing for you?

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Let me show you the 3 ways I see earning passive income.

Stocks and Bonds:

  • Pros:
    • Easy in, easy out(liquid).
    • Does not require a lot of capital.
  • Cons:
    • Can’t’ leverage meaning need at minimum 50% to buy.
    • Are subject to market volatility.
    • No control over what the company does.
    • Most companies don’t have dividends any more.
    • Only way you make money is on appreciation.


Real Estate:

  • Pros:Can leverage.
    • Not liquid (Can’t dump a huge number on the market).
    • 4 Different way to make money (with the right property can make 100% return per year).
    • Can get a property cheap.
    • Insider trading is OK.
  • Cons:
    • Not liquid (market goes down need to sell fast, will still take time).
    • Tenant(s).
    • Takes money to get into a property.
    • Repairs.
    • Need to know your market.


Online:

By: Giftss

  • Pros:Start up time is quick.
    • Websites are cheap to get and set up.
    • Can make money many different ways.
    • Many different ways to market your product for little or no cost.
  • Cons:
    • Takes time to set up following.
    • SEO’s take time.

 

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