How to start?
Passive income streams require an upfront investment and a lot of work in the beginning, but after some time and hard work these income streams start to build and are able to maintain themselves, bringing you consistent revenue without much effort on your part.
Not all passive income streams are suitable for everyone and building them heavely depends on: financial possibilities, education, experience, risk profile, time, hobbies. Not everyone has enough financial experience to build a dividend stock portfolio, as not everyone has the skills to write and sell an eBook online.
An effective and rational solution is to use your savings, money obtained from a job or a business, in assets that generate passive income streams later.
If you want to get started earning passive income here’s what you should know first.
Although the word “passive” makes it sound like you have to do nothing to bring in the income this just isn’t true. Aspects of it are, but in reality, there will be allways work to be done.
All passive income streams will require at least one of the following two elements:
1. An upfront monetary investment, or
2. An upfront time investment
You can’t earn residual income without being willing to provide at least one of these two.
Passive income ideas requiring an upfront time investment
- selling stock photos
- licensing music
- selling eBooks online
- create an app
Passive income ideas requiring an upfront monetary investment
- dividend stocks
- peer-to-peer lending
- rental properties
- invest in crowdfunded real estate
- mutual funds
Bottom line, the safest source of passive income is … a blending of all those listed. This is to ensure that under no circumstance our source of passive income is transformed into a source of active loss.