Investor Dictionary defines Passive Income as follows:
There are three types of income – earned, portfolio and passive income. Most types of passive income are derived from real estate/property, while other types of passive income are derived from royalties from patents or license agreements.
An income stream falling into this category, is one where money is received usually on a regular basis, where no additional effort has taken place. This does not mean no effort at all. Most passive income streams require great effort to start with.
Some examples: Interest Income paid from bank deposits. Rental income from real estate/property. Royalties from writing a book.
Unless you have massive bank deposits, you most likely aren’t going to be making much passive income that way. There are very few of us who will ever write a book, so that one is out as well. Rental income is one of the most well known of passive incomes. Again, it takes money to get into a position to make rental income. Investments in stocks and bonds could be counted as passive income if the the stock pays a dividend. Also, any increase in worth of the stock or bond could be counted as passive income.
What other ways can a person make passive income? I make a small amount here through advertisements, but not nearly enough to create much wealth from. How do you make your passive income?
[tags]passive income, income, wealth[/tags]
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I have several streams of passive income. One came from the demise of a marriage (wink). I had pasive income when I did an owner carry situation on the sale of my business. I now have passive income through an investment in another business that creates cash flow for me each month. REI does take money- but it doesn’t have to be yours. If you have credit, or can find a deal, you can find the money to do the deal, and create pasive income or more money to do passive income deals with. There are lots of ways depending on what you have access to and what you allow yourself to think is possible.
I hope this isn’t classified as spam, but I have written an article that I think is relevant to this topic:
http://www.zgraham.com/2006/10/how-i-made-800-in-one-day/
I made $800 worth in one day a while back that I really didn’t have to do anything with, it was entirely passive.
When it comes to the internet opportunities, you just have to keep your eyes open. You might get lucky one day like I did.
I just discovered that my previous post isn’t actually about “passive” income..it was late when I posted and there was a misunderstanding. Please feel free to delete it, as it’s not relevant to the post.
Well, that depends on how you look at it Zach. If you think of it as an investment and the resultant income from the investment, it is passive in a way.
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