There’s a special feeling that comes from working for a living. It’s a feeling of accomplishment that not many other things in life can top. Unfortunately, you only really feel that feeling when you get and cash your check. That next Monday when you’re right back at the grind; work is just work.
What if I told you there was a better way? What if I told you, you could make money without the grind?
Such is the beauty of passive income…kinda.
The basic definition of passive income is simple; money you make without having to do anything (or much of anything). Sounds great right? Well, that definition is a bit of a misnomer. While, yes, it is the textbook definition of the term, the reality is never quite that simple.
It is unhelpful to actually think of passive income as money you don’t have to do anything to earn. In fact, the term residual income would probably be much more accurate. That means you put some degree of work at the start, then continue to reap the benefits long after that work is done.
That said, the highest netting passive income usually comes from various different types of investments. With investment comes risk. The greater the risk, the greater the potential reward. More on that later.
A Word of Warning
Due to the attractive nature of passive income, it is often used as bait for scammers. That’s why we want to stress that there is usually at least some degree of work involved in setting up a passive income. If something sounds too good to be true, it probably is. Be sure to do your due diligence and make sure any kind of “something for nothing” deal is legitimate. Here are a few different types of passive incomes you can look into that don’t require prohibitive amounts of startup capital.
A robo-investor is pretty much what you’d imagine it is. You give a site a specified amount of money and they invest it in ways they think will get you the best return on investment (ROI), for a fee of course. Sites like these are great for smaller investments, if you can find one without a minimum. The more you put in, the more you stand to lose, but also the more you can make. In that regard, it is like pretty much all investing. The difference you don’t need to be an expert in the field yourself.
The set it and forget it nature is what ups the passivity. However, if you were able to learn about the market and cut out the middleman, it would be a little more work, but much more reward.
Let’s say you write an e-book (which would, admittedly, be a lot of work). You can get it published and sell it on various different sites. That means long after you’ve finished and moved on to something else, you are still potentially getting paid.
With blogs, all you have to do is throw some google ads throughout your content and every time someone clicks on them, you are making money. They are obviously less passive because you have to keep creating the content if you want more opportunities to make money. But, in the sense that any particular piece you create can make you money long after you create it, it’s not a bad setup.