I make a little bit of money off of referring people to services I truly believe in. I never recommend things I don’t personally use, but if I’m going to refer friends to Shopify, products on Amazon, or Udemy courses besides my own, I have no shame making a couple bucks off it. In most cases, these referral sales come from older links within my podcasts or courses, and therefore, are completely passive.
To your point about Municipal Bonds, my concern is tax reform. While everything is mostly being worked behind closed doors (and likely wont ever see the light of day). There is still the chance they propose to limit the amount of the tax free nature of these bonds. While I dont sen panic in the streets, I do see a scenario where bond prices get additional pressure because municipalities have to increase rates due to people putting their money to work elsewhere.
What I did:The first two years of work in NYC was brutal. I told myself there was no way I could work on Wall St for my entire career because I’d probably die from heart failure by age 40. Having an early death in my mind willed me to save 50%+ from the first year onward and devise a CD, real estate, and stock investment distribution system for my savings every year. I thought about starting this site for at least a year before I hired someone from Craigslist to give set me up and push me forward. Hiring someone to get started is totally worth it if you are a master procrastinator. You can now learn how to start your own site with my step-by-step guide to save yourself time and money. 
Most credit card companies offer sign-up bonuses to entice you to open a credit account with them. As long as you don’t spend money just to hit the minimum balance and always pay your balance on time, this can have a minimal impact on your credit score while earning you hundreds – or even thousands – of dollars a year. Some of the best travel credit cards offer 100,000 points to new accounts when you meet reasonable spending requirements.
I have to agree. Our Duplex cost us 200k initially in 1998. Over time and completely refurbishing the property with historically appropriate sensitivity, we invested another 200k or so. We just had a realtor advise us we could ask 700k for it today. It nets us 30k annually after taxes, insurance and maintenance. We still have a loan on it which I have not taken into account, that will be paid off within 5 years if we keep it. My mental drama now is, while I am quite giddy over the prospect of earning a tidy sum of profit if I sell, what then would I do to equal the ROI and monthly income this thing generates? Rents are low, they should be 4k a month and will only go up. Tempted to keep it and not sell. And while I do have some stocks, I basically suck at them. I am much better at doing properties.
Because you’re publishing an eBook rather than a physical book, the costs are minimal. And you don’t have to print 1,000 copies of your book hoping someone will buy it. Instead, you can write your book, create a fancy cover for $5 using Fiverr and publish through services like Amazon Kindle Direct Publishing. Amazon will handle everything for you, then take a percentage of the revenue you generate.
1) Save Like Nobody Owes You Anything. Passive income starts with savings. Without a healthy amount of savings, nothing works. Your overall “Money Strength” will be an F- if you do not build a financial nut. In our current low interest rate environment, you must save even more than before. It’s important to also realize that the savings I am referring to is AFTER-tax savings. You need to save money after contributing to your 401k and IRAs since you can’t touch pre-tax retirement accounts without a penalty until 59.5. Ideally everyone should max out their pre-tax retirement funds first, but if you don’t have enough funds and want to retire earlier then a decision to have more accessible post tax money will still work.
Yet none of these people I've talked to who have this temporarily successful lifestyle seem very happy. They actually seem kind of restless and lost. I've had conversations with several of them to help them determine "what the purpose of their life is" now that they have some amount of money coming in from some little passive venture they don't even care about that much. It all feels empty to them.
I just can’t seem to get my head around creating my own online product. When you talk about it, you make it sound like its mostly just about putting in the time and plugging away at it. Problem is I can never seem to come up with any ideas for a site or product that seem remotely unique or compelling or that I have any special knowledge about. The stuff I do know about is pretty commodity type knowledge that can mostly be found on thousands of sites on the internet already. Any tips on discovering what your “unique angle” is? I mean, you have a pretty compelling and somewhat unique personal story of working on wall street and then walking away at a young age.

Some people take it automated well before the year is up. When it converts, it converts. If you target the right people and you're able to create the right message that appeals to your audience, you might just hit a home run. An automated webinar often involves the creation of a webinar funnel. That includes, not only the webinar, but also the email sequences, and possibly a self-liquidating offer, and maybe some done-for-your services and up-sells.
From what he describes, creating passive income definitely does not sound easy. It requires a serious ramp-up -- often requires 80- to 100-hour workweeks in the beginning, says Flynn. But once up and running, and depending on the content, some sites take fairly minimal maintenance. Green Exam Academy, the LEED exam study site he launched in 2008, takes just him four to five hours a month to maintain but brings in $250,000 annually.
“There is no such thing as 100% passive income,” says Flynn. “Even with real estate you still have to manage your properties, or even with the stock market, which is potentially passive income, you still have to manage your portfolio. With online business, there is no such thing as 100% passive income — and this is coming from a guy with a blog called SmartPassiveIncome.com. The definition of passive income is ‘building these businesses of automation,’ but in order to keep them automated and keep that trust going with your audience on top of that, you do have to keep it up every once in a while — so a lot of time upfront and a little time after. But there is alway time involved.”
In Eric Reis’s The Lean Startup, a fantastic book about how today’s entrepreneurs and startup companies are approaching the way they create and innovate, Eric talks about how vital it is to use validated learning and scientific experimentation to be able to steer a company in the right direction. In other words, to use customer feedback and quantified data analysis (of real, non-vanity metrics) from a minimal viable product to make decisions and pivot a business one way or another.
Hello from the UK! Fundrise and Wealthfront are only available to US residents it seems :(. Any other readers from the UK here? The only thing I have managed to do from Sam’s list is getting a fixed rate bond (CBS is having a 5-year fixed rate at 2.01% – not great but the best I could find ). Don’t know if the FIRE movement will ever take off here but would love to trade tips/ideas on how to reach FI and have the freedom to consider alternative rythms to living.
Most credit card companies offer sign-up bonuses to entice you to open a credit account with them. As long as you don’t spend money just to hit the minimum balance and always pay your balance on time, this can have a minimal impact on your credit score while earning you hundreds – or even thousands – of dollars a year. Some of the best travel credit cards offer 100,000 points to new accounts when you meet reasonable spending requirements.
In the real estate market, the one of best ways to generate passive income is by investing in turnkey rental properties that are ready to rent with and are managed by property management companies. In theory, the process is relatively simple. You either research properties or have people you trust do it, find ones that are in good condition and preferably in good areas, pay a reputable contractor to perform any repairs and ensure the property is in its best possible condition, and then hire a trusted property management company to handle the administrative tasks, including collecting rent, documenting and paying for maintenance and repairs, and sending money to you.
Thank you for sharing your article! You did a great job saving and putting your money to work for you. Like you, I share the same financial dream of having 150-200k in passive income and traveling the world stress-free! :) Right now I’m saving about 80-90% of my active income and put it toward ETF funds and value growth stocks because I’m seeking capital appreciation. And I can tolerate a lot of risks because I’m still in my early 20’s. By the time I reach 30 something I’ll start looking into blue chips stocks that pay dividends and REIT. So I want to be where you are by that time lol. Anyways, that the plan and I’m sticking to it. Good luck on achieving your financial dream!
I’ve invested in just about every type of real estate property for both passive income as well as an active return. While passive real estate investing may not live up to the myth you are sold in the infomercials, it can be a great source of residual income. Check out real estate crowdfunding to increase the passive potential of your income properties and invest for the long-term.
What if there was a way for you to effectively make money while you sleep? Sounds like a dream come true, right? Even for the biggest workaholics, there are only so many hours in a day. If only you could get paid multiple times for something you did once—that’s exactly how passive income works! Thanks to technology, the potential to create multiple income streams is even easier than ever before. We’re no longer held back by the limitations of a traditional 9-to-5 job, and financial freedom is at our fingertips. Even if you already work a full-time job you can still improve your financial health with passive income.

Starting a blog is one of the most popular side hustles to earn online income. This is because whether you have 10 people or 10 million reading your content, the amount of your effort to write an article is the same. Websites have low start-up costs and you can literally buy your domain, launch your site and have a few pages created in less than an hour. You won’t start making money right away, but you will be building towards that first $1 of income.
I’m looking at accepting a professor job. It’ll be more than a 50% pay cut. But I’ll have the same life you describe – endless summers and an entire month every winter to ski. I’m thinking in the end, eventually, I might even end up wealthier in more ways than one. Happy people tend to be the most successful. I have no desire to diversify. Dividend stocks allude me. CDs seem like a good choice for older people, but I have time on my hands and real estate knowledge, so I’m sticking with what I know, despite the fact that most people will tell me it is foolish and I should diversify.
As todays business world becomes more and more web focused, creating passive income streams online should be one of your main focuses when building a business in the new economy – whether you’re doing this on your own, or with the help of virtual assistants that manage your blog, or even handle the marketing of your site – you’ve got to love making money while you sleep!
Speaking from our own experience, you can’t be a passive McDonald’s franchisee. Every McDonald’s potential franchisee will need to complete at least thousands of hours of training before he/she would be approved to acquire a franchise and only if he/she has the financial resources to acquire a franchise. It could take years before one would get a single store franchise. Until the franchisee eventually has acquired multiple stores and established his/her own management team, the franchisee would have to put his/her nose to the grindstone and work his/her ass off every day. I won’t call it a passive investment by any stretch of imagination.
Given the growth in the sharing economy, your junk can start to pay for itself. For example, if you have some awesome vintage furniture inherited from your grandmother sitting in a storage unit, you can rent this out to photographers for their “styled shoots” which are becoming all the rage. If your furniture is more modern but you still can’t bear to get rid of it – perhaps a home stager will be interested.
Returns on real estate investing vary and you don’t want to get into the business based on an estimated return but on your own calculation of what is possible for your local market and for specific properties. I have seen pretty common averages between 8% and 12% a year for single-family residential rentals with cash flow accounting for between 0% and 6% of the return.
Leveraging the internet to create, connect, and sell is something every creative person should attempt to do. The only risk is lost time and a wounded ego. You can start a site like mine for as little as $2.95 a month with Bluehost and go from there. They give you a free domain name for a year. Forget all the add-ons. Not a day goes by that I’m not grateful for my site.
Dividends made sense 40 years ago as a relatively simple rule of thumb, but after all the work done by John Bogle with index investing, and academics with Monte Carlo sims and the 4% rule, dividend investing just isn’t the simplest, cleanest way to invest or receive passive income anymore. It’s actually significantly more risky compared to index investing, because dividend companies are a much smaller share of the total global economy compared to the broader indices.
If someone stole my hard work and passed it off as their own, I’d be livid and would pursue them to the ends of the Earth for full restitution. A man I hired to work with me registered my preferred domain name of my business and has re-registered it in subsequent years. That’s bad enough; I’m mad as hell. The worst aspect of his behaviour is that I don’t know WHY he has done that; I paid him the fee we had agreed on and thanked him for his input. We also got along perfectly well during the project so far as I know, so I don’t see what his problem is.
When withdrawing money to live on, I don’t care how many stock shares I own or what the dividends are – I care about how much MONEY I’m able to safely withdraw from my total portfolio without running out before I die. A lot of academics have analyzed total market returns based on indices and done Monte Carlo simulations of portfolios with various asset allocations, and have come up with percentages that you can have reasonable statistical confidence of being safe.
But, you don't need to go further than that. You can simply write it and publish it and collect the income. That's all. Send out a couple emails to your list (if you have one) or post it on social media, and there you have it. Passive income. Now, the amount of income you receive depends on the quality of the book you've written. How well did you craft the message? How targeted was the information to your audience? It counts.
It’s been almost 10 years since I started Financial Samurai and I’m actually earning a good income stream online now. Financial Samurai has given me a purpose in early retirement. And, I’m having a ton of fun running this site as well! Here’s a real snapshot of a personal finance blogger who makes $150,000+ a year from his site and another $180,000 from various consulting opportunities due to his site.

I like the way each section has a template or pattern of a heading with a consistent combination of text and images. It does give some order to the huge of information you offer. But I was actually wondering why you did not make this an eBook instead of a blog post? Or create an outline the way Jim Wang of WalletHacks does at the beginning of his blog posts? I think it holds the reader’s attention especially when there is so much information to review and perhaps absorb.
Absolutely Federico. I still invest in real estate but no longer carry the misconceptions that it’s passive income. Fortunately, I’ve held my real estate properties long enough that they cash flow even after paying for management but it was a lot of work in the beginning. Real estate is a great investment but passive income investors should look to REITs and other investments rather than direct investment.
- HubPages.com is a content community for writers. Members (referred to as "Hubbers") are given their own sub-domain, where they can post content rich articles (known as Hubs). As a Hubber, you earn revenue primarily from Google AdSense (you need your own Adsense account) and other advertising vehicles such as, Kontera, and the eBay and Amazon Affiliate programs. There is a 60:40 revenue split and it’s achieved by alternating the code used in advertisements: Your code will be displayed 60% of the time, and HubPages' code 40%. Same as Squidoo, traffic dropped heavily due to Google's changes but the site is still wildly popular. Currently it’s one of the 500 most visited US sites on the Internet.

Why? Because you’re working a 42 hour week and that’s probably your earnings ceiling unless you add other income streams. 4 hours per week is best for me, since I have domestic responsibilities I’d much rather be addressing: Still, when I get the chance, I love working my socks off on something I enjoy, which is helping and teaching other people to be successful. It’s more fun and more productive to share 🙂


But, you don't need to go further than that. You can simply write it and publish it and collect the income. That's all. Send out a couple emails to your list (if you have one) or post it on social media, and there you have it. Passive income. Now, the amount of income you receive depends on the quality of the book you've written. How well did you craft the message? How targeted was the information to your audience? It counts.
If you are not able to get a mortgage on the property, there are still a few options available though rates can be fairly high. You might try approaching the seller for owner financing where they sell the property to you on monthly installments. This might not be possible if there’s a mortgage on the property since many carry a “due on sale” clause. If you do go this route, make absolutely sure you get a notarized contract with all the details.

The term affiliate marketing has taken a bad rap over the years, primarily because people are abusing just how easy this is to do. Internet marketers are finding products they don’t even use because they come with a sweet commission, and are spamming everyone until they either buy, or unsubscribe. This is also known as the dark side of affiliate marketing.


I like the way each section has a template or pattern of a heading with a consistent combination of text and images. It does give some order to the huge of information you offer. But I was actually wondering why you did not make this an eBook instead of a blog post? Or create an outline the way Jim Wang of WalletHacks does at the beginning of his blog posts? I think it holds the reader’s attention especially when there is so much information to review and perhaps absorb.
That is a nice list of passive income sources. Actually, the most up-to-date list of dividend growth stocks is the list of dividend champions, maintained by Dave Fish. The list of dividend aristocrats is incomplete at best. For example, the dividend champions list has over 100 companies that have managed to increase dividends each year for at least 25 years in a row. The list of dividend aristocrats has no more than 50 – 60.
2. Focus on income-producing assets. Internet growth stocks may be sexy, but they provide no income. To build a large enough passive-income stream to survive, you must invest in dividend-generating stocks, certificates of deposit, municipal bonds, government Treasury bonds, corporate bonds, and real estate. You're free to invest in non-income-producing assets for capital appreciation too. You just want to earn reliable income when the day comes to leave your job.

A perfect example of the Active Problem Solving + Automation concept is in my online courses I’ve created over the years, or my free webinars I’ve created more recently Each of my online courses and webinars are targeted to help people with specific problems, whether that’s in the area of affiliate marketing, podcasting, building a brand, and so forth. I am always improving upon the courses, but they are also evergreen for my audience.
×