Passive income is an incredible tool that everyone should include in their retirement plans. With traditional investing you have to rely on the stock market to increase your investments over time. The longer you have your money invested, the more your money will grow. The stock market does not produce passive income, except in the form of dividends. Most dividends are extremely small and produce small returns on investment. The bulk of stock market returns come from an increase in stock market prices. The only way to realize those increase in value is to sell stock. Retirement calculators that use the stock market as an investment plan on you running out of money when you die because you have to sell all your investments to keep bringing money in.
I am still working on my passive income, however I like multiple income streams even more. My favorite is capital gains because it is one of the lowest rates. One of the best passive income streams is a pension/Social Security. As I near retirement, I like the concept of it supporting my needs and my 401k supporting my wants. In addition, my brokerage accounts are all at capital gains rates. Don’t misunderstand, I am still working on adding more because I like multiple income streams!
The point I wish to communicate to you and the community members from the example of my thought process above is this: since deciding to become a Netpreneur, I’ve never been SO miserable in my entire life. I’m overwhelmed with all this data I have gathered and it paralyzes me to the point I’ve NOT set up a blog or website because I’m too confused to do so!!
Focus on your primary passive income stream first. It's difficult to grow your passive income into multiple streams if you don't already have one, solid stream. Focus all of your efforts on that one project first and help it grow as productive as possible. Then, you can take the money you've made and lessons you've learned from this passive income stream and put them into others.

I just wanted to say how nice it is to see such a positive exchange between strangers on the Internet. Seriously, not only was this article (list) motivating and well-drafted, the tiny little community of readers truly were a pleasant crescendo I found to be the cause of an inward smile. Thank you, everyone, and good luck to you all with your passive income efforts!! 🙂


Ever find yourself humming a tune, or laying down tracks for yourself or friends? Your next catchy phrase might fetch you a solid passive income stream. On sites like ProductionTrax and Audio Network, musicians can license their compositions for background music in apps, commercials, and websites to earn more money. Read more about this strategy at The Guardian.
So how do you get started with the EP Model? First, you need to be an expert in the eyes of those you’re looking to serve. And again, you don’t need all those qualifications and credentials. A lot of people gain expertise and credibility just by sharing their experience learning something, which is something I’ve done on SPI.com. If you think about it, many people in the personal finance or fitness space establish their authority by sharing their journey and their process. They do it by sharing their experiences—and you can do the same thing, too.
However, affiliate marketing isn’t as simple as just placing some links in your texts and hoping to make a sale. To be successful, you’ll need to follow some best practices. First of all, always disclose that you use affiliate links or your readers may feel as if they have been misled. Choose to link out to products that are relevant to your niche and your content. Ideally, you will only link to products and services you can personally vouch for.
​Udemy is an online platform that lets its user take video courses on a wide array of subjects. Instead of being a consumer on Udemy you can instead be a producer, create your own video course, and allow users to purchase it. This is a fantastic option if you are highly knowledgeable in a specific subject matter. This can also be a great way to turn traditional tutoring into a passive income stream!
Thanks for the info…I kind of figured it is really not that expensive to live if you are not an extravagant person. I could definitely figure out how to funnel expenses through a part time business…I think I keep thinking along the lines that I’m going to be paying the same tax rate after retirement, but reality is you could get pretty lean and mean if one focused on it. On a scale of 1-10 with 10 being utter panic mode, how worried are you about your “pile” lasting through a 50 year retirement now that you are a couple years into it?
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.
I had the idea about a year ago to create a simple website in WordPress and re-package the absolute plethora of data which has inundated my email Inbox for the past 18 months. I have literally over 5000 files I have downloaded from many sources and saved on my Internet Favourites. These files cover a whole range of subjects which I consider important for me to know in order to fulfill my ambition of being a successful Netpreneur and SME (small-to-medium enterprise) owner.
This is an ideal strategy if you live in an area where real estate prices are too high to realistically invest in, or you don’t want the hassle and expense of traveling all over the country visiting potential properties. Plus, if you are new to single-family real estate investing, letting a place like Roofstock guide you through the process is a great way to get your feet wet. https://www.mamafishsaves.com/wp-content/uploads/2017/07/Basics-passive-income-Facebook.jpg
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.
This is such a fabulous piece. Thank you for your amazing efforts here. I was wondering -any initial thoughts on what one would charge an employer to post a job (for the idea about creating a site to help people with their resumes, etc)? I need to research for sure but was curious if anyone has any ideas on this. I have a background in the corporate world in management and recruiting and have been tossing this idea around for a while but am stuck. Thank you!
​Udemy is an online platform that lets its user take video courses on a wide array of subjects. Instead of being a consumer on Udemy you can instead be a producer, create your own video course, and allow users to purchase it. This is a fantastic option if you are highly knowledgeable in a specific subject matter. This can also be a great way to turn traditional tutoring into a passive income stream!
If you have a spare bedroom, you can find a roommate or list the space on AirBnB for travelers. Having a roommate is the more passive of the two, as being an Airbnb host will require more work in the form of turning over the room between stays. This is a super painless way to earn $500 to $1,000 a month without much effort – you may even be able to cover your mortgage payment with this extra income!
I knew I didn't want to work 70 hours a week in finance forever. My body was breaking down, and I was constantly stressed. As a result, I started saving every other paycheck and 100% of my bonus since my first year out of college in 1999. By the time 2012 rolled around, I was earning enough passive income (about $78,000) to negotiate a severance and be free.
Can you expound on the use of publicly-traded REITs as a passive income source? I’m 31 years old. No children. No wife. No dependents. (I am the closest thing to Ebenezer Scrooge you’ll ever see). My monthly expenses amount to less than $2,000 per month (most of which go to pay student loans) . I have a decent job making over $55K per year. I also have a $60K inheritance coming my way in a few weeks. I am absolutely crazy about achieving absolute financial independence, which for me would require a passive income of over $2000/month to cover my living expenses. I could achieve that in a mere couple of years if I were to save excessively and dump my savings (and inheritance) into a Mortgage REIT via the stock market, most of which are shelling out above 10% returns in dividend payments. Is this a good strategy for me? Or am I being too hasty and assuming too much risk?
Crowdfunded real estate companies like Fundrise are similar to today’s peer-to-peer lending companies. Like Lending Club and Prosper, they offer a platform that matches real estate investors with investment choices. They help people looking to invest money in real estate in a passive manner. Also, investors can avoid bargaining with sellers. No need to get involved in the transfer of ownership and management of those properties either.
Hire someone else to manage existing income streams. If you've built up a couple of solid passive income streams and want to move on to others, consider hiring someone to manage them for you. Obviously, this will only work if your income from these streams exceeds the amount you would have to pay someone to manage them. However, this is the way to truly passive income, because with someone else managing it, you're literally earning money by doing nothing.

Once your audience has grown and you have validation that you’re offering them value, there are many ways to create passive income. You could sell digital products like ebooks or courses, take up affiliate marketing in which you promote other company’s products and earn a commission when you sell that item to your audience, build a community and charge people to be a part of it, create software and sell that, among other avenues. Ask your audience directly what would serve them best, or look at what they’re saying on Twitter, Facebook or other websites, to find out what problems they have and how you could help solve them.
What I like about p2p investing on Lending Club is the website’s automated investing tool. You pick the criteria for loans in which you want to invest and the program does the rest. It will look for loans every day that meet those factors and automatically invest your money. It’s important because you’re collecting money on your loan investments every day so you want that money reinvested as soon as possible.
Anthony, nice setup! To your question about the rental mortgages, you haven’t said what interest rate you are paying. As a start, if you are paying more than the risk free rate (Treasury bills) which you probably are, then a true apples to apples comparison would be yes, pay off the mortgage. But, if you are comfortable taking more risk, you have other options to invest in which you *hope* will yield you more over the coming years. You also didn’t say whether the rentals generate net income and if so, how much? What is the implied rate of return on the equity you have invested in them? If you pay the mortgages off, you’ll have even more equity tied up, will the extra net income make that worthwhile? Maybe you should use the money to buy more rentals instead, if purchase opportunities still exist in your town. … this is less of an answer than a framework to analyze the decision, hope it is helpful.
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.

The views expressed on this blog are those of the bloggers, and not necessarily those of Intuit. Third-party blogger may have received compensation for their time and services. Click here to read full disclosure on third-party bloggers. This blog does not provide legal, financial, accounting or tax advice. The content on this blog is "as is" and carries no warranties. Intuit does not warrant or guarantee the accuracy, reliability, and completeness of the content on this blog. After 20 days, comments are closed on posts. Intuit may, but has no obligation to, monitor comments. Comments that include profanity or abusive language will not be posted. Click here to read full Terms of Service.
If you love design and you are an artistic person, selling digital products on Etsy could be a great way to earn passive income. Digital products require little maintenance, your customers will simply receive a link to download them (which means you don’t have to worry about shipping and returns handling). All you need to do is spend time upfront to create beautiful artwork! (Easy right?)

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.
You can upload a T-shirt design with Amazon Merch and earn a percentage of each sale. If you choose to outsource the design, there are sites like Fiverr and Upwork with freelancers that can provide designs as low as $5 and up. Or you can buy pre-packaged designs from companies such as Design4Dollars and Merch Ready Designs, Lindsey says. Amazon.com also allows you to stream your own video game, talk shows, and other creations for income.
If you know anything well, a place, how to fix something, how to make something, how to do something, you can write a guide for it. You can sell your guide as an e-book, offer it as a download for a fee on your site or reach out to bloggers with similar content and ask if they will offer it as a paid download on their website (for a price of course).
Who doesn’t like some down and dirty affiliate fees?!  Especially if you realize it can be even easier to make money this way than with an ebook.  After all, you simply need to concentrate on pumping out some content for your own site and getting the traffic in, often via Google or social media.  Unsurprisingly, most people can enjoy their first affiliate sale within 30 days of starting a blog.  Continue reading >

Get paid to take surveys at home by signing up with one or more survey websites. All you do is answer questions and voilà, you get paid. Another way to earn extra income is to participate in focus groups. Companies hire focus groups as a way to test out a new product before it hits the market. Why? Because they need to make sure it will make money; they want a high return on their investment. Surveys and focus groups may not make you a millionaire overnight, but you can earn hundreds of dollars each month by giving your opinion on products and services.
Another way to generate passive income is to invest and be a silent partner in a business. This is very risky, but with risk comes the potential for high returns. For example, several years ago both Lyft and Uber were looking for private investors to invest in their companies. Today, they are worth billions - but you as an investor would only reap that benefit if they go public via an IPO, or get acquired. So, it's risky.
However, when you lack the money, you need time. You'll need to invest the upfront time now in order to reap the benefits of automatic income later. It just doesn't happen overnight. So don't expect it to. However, you can do this without quitting your day job. All it takes is some sincere effort over a consistent period, and voila! But, to get there, you'll need to consistently burn the midnight oil or get up at the crack of dawn. Your choice.
As a general rule, the passive activity loss rules are applied at the individual level. Although Internal Revenue Code Section 469 was enacted to discourage abusive tax shelters, its impact extends far beyond shelters to virtually every business or rental activity whether reported on Schedules C, F, or E, as well as to flow through income and losses from partnerships, S- Corporations, and trusts. Generally, the law does not apply to regular C-Corporations although it does have limited application to closely held corporations.
This company mainly focuses online business and internet marketing products, but there are also other products ranging from health and fitness to travel. One of the great things about DigiResults is that both vendors and affiliates get paid at the point of sale, and not a month or two later like most affiliate marketplaces. I’ve been using their system and so far it’s one of my favorites.
To save time and effort, a person can group two or more of their passive activities into one larger activity, provided they form an "appropriate economic unit." When a taxpayer does this, instead of having to provide material participation in multiple activities, they only have to provide it for the activity as a whole. In addition, if a person includes multiple activities into one group and has to dispose of one of those activities, they’ve only done away with part of a larger activity as opposed to all of a smaller one. 
Now, if you choose to deliver part or all of your course in video format, you can use professional video hosting sites like Wistia or Vimeo. Beside giving you the option of removing the hosting company’s logo, these services also provide analytics which can show you how effective your video is at holding your audience’s attention. Alternatively, you can use litmos, a learning management system that enables you to create an online course with your own branding, domain name, and landing page. There is no percentage cut taken from your revenue like Udemy. Instead there is a monthly fee for their service.
The only thing better than making money is making money while you sleep. That’s the whole concept behind passive income. You can spend more time with your family and friends, perfect your golf swing or learn another language. The possibilities are endless because you’ve set up passive income streams that provide you a paycheck without needing to clock in. Here are the 10 best passive income ideas that will rock your world.
For those of you who don’t want to come up with a $220,000 downpayment and a $900,000 mortgage to buy the median home in SF or NYC, who don’t want to deal with tenants or remodeling, and who wants to not do any work after the investment is made, check out Fundrise. They are my favorite real estate crowdsourcing company founded in 2012 and based in Washington DC. They are pioneers in the eREIT product offering and they’re raising an Opportunity Fund to take advantage of new tax favorable laws.
"The majority of people I see who are interested in passive income and pursuing it, haven't learned how to create value in the first place. They're just trying to do gimmicks and tricks and formulas. They're trying to do the automation part, but they've missed the point that the automation only spits off cash if it's based first on automating something that actually creates value. If you automate something that is worthless---or worse than worthless, a scam -- it's not going to work in the long run."
If you're curious about starting a blog, read this guide. I used Bluehost to get started with a website because it's super cheap - a free domain name and $2.95 per month to host it. I love Internet businesses because of this extremely low overhead and huge income potential. Our Bluehost deal is specific to our site, so if you want to start a website, make sure you get our $2.95 hosting deal from Bluehost.
I’ve been researching a path to financial independence, and the wealth of knowledge here is amazing, but at times overwhelming. I’m honestly not quite sure where to start. Whether it be paying off debt (which I’ve always heard is priority 1), or sinking money into realtyshares or CDs for growth. I’d love to generate a passive income (in a few years time) to supplement some of my day job to have time to spend with my little one during her golden childhood years, but not sure if there’s even a right order to go about it.
In order not to succumb to that, Flynn says it’s important to know your motivation. “Passive income is important to me not just for the financial security but so I can spend time with my family,” he says. “I’ve been able to work from home and witness all my kids’ firsts. I have a one-year-old and a four-year-old, and that's what drives me and gets me pushing through those hard times and why I keep creating new products and why I want to help other people do the same thing.”

But then, I started receiving more and more opportunities to spread the word and my mission. I was invited to speak at several national medical conferences, but I turned them down to maintain my anonymity. I was invited to meet up with readers whenever I traveled to different towns, but I turned those down for the same reason. What’s flattered me the most is that I’ve even been asked to mentor some people, but again, I’ve declined to stay hidden.


Passive income is a great tool for building retirement income faster, paying off debts, and, ultimately, retiring early and comfortably. If you have passive income during your retirement years, you potentially could live as well as you did during your peak earning years. Passive income is money you earn without doing actual labor. Often times, it comes from investments, such as in rental properties, stocks, bonds, annuities, and other investments. https://i0.wp.com/www.manicinvestive.com/wp-content/uploads/2016/06/active-income-vs-passive-income.png?resize

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.


Do you think it’s possible to build a blog from scratch, outsourcing the work from day one (assuming I have some cash that can cover the initial expenses until the blog generates enough income to at least break even)? In other words, do you think you could you have spent your $500 max per month for the writer, social media expert, etc to build your blog to the point it’s earning the same amount of money it does now?
Part of providing value is building trust. Don’t link to things that aren’t of good quality or people won’t trust your recommendations. The other part of making an audience is consistency. It matters less how often you post than how consistently. If you only have time to do one post a month, that post should come out on the same date and time each month.
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.
So how do you get started with the EP Model? First, you need to be an expert in the eyes of those you’re looking to serve. And again, you don’t need all those qualifications and credentials. A lot of people gain expertise and credibility just by sharing their experience learning something, which is something I’ve done on SPI.com. If you think about it, many people in the personal finance or fitness space establish their authority by sharing their journey and their process. They do it by sharing their experiences—and you can do the same thing, too.

Before you buy any property, an inspection by a professional and independent home inspector is essential. Even if your potential purchase has just undergone a beautiful renovation, you must find out if the wiring and plumbing are all up to code. In most areas, it’s illegal to operate a rental property with any code violations. A top-quality inspector will be able to estimate the remaining life of the roof, HVAC system, and hot water supply, as well as find any defects in the structure, such as dry-rot in the attic.
×