Investing in bonds: Similarly, bonds are an attractive way to engage in passive income. Over a recent 45-year period, bonds funds, as measured by Vanguard Funds, returned 7.1%. Of course, there's no guarantee that investments in stocks or bonds will always work out well, investing in them is by far the surest way to generate money through passive income.
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.

If you're a graphic designer or even an amateur artist, there are plenty of sites which will pay you for sharing your artwork. Sites like Etsy, Zazzle, and The Souled Store allow people to add their designs to T-shirts, phone cases, mugs, posters, book covers, and more. If and when these products are bought, the sites then pay a commission to the contributing artist.


Rich people know the secret to wealth and peace of mind - and that is - having many cash-streams coming into their lives (and accounts!) instead of just one. One cash flow - say a salary or profit from a business - will not provide security in all times. On the other hand, multiple cash-flows provides stability and security. In case one cash-flow vanishes or reduces, the other one gives you comfort and sustenance.
If you’re considering real estate for your portfolio, let me give you some advice: Don’t jump in without a ton of research. It’s not as easy as they make it look on shows like Flip or Flop. There’s a lot that goes into becoming a successful landlord or flipping houses for a profit. Plus, a lot can go wrong and your mistakes can eat up your profits quickly.
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One great way to generate a passive income is through affiliate marketing. Now, this does depend on the size of your list. Yes, size matters when it comes to your list. Especially if you're looking to make some serious money and do it on autopilot. But, list-building takes time. It doesn't happen overnight. And you need to add value to your list or you become obsolete.
I read about early withdrawal penalties on IRAs/401Ks very often. Almost always with a statement of “locked up” or “can’t touch” until 59.5. I’m sure you and well informed readers as well know about SEPPs in regard to IRAs/401Ks. For those that don’t SEPPs aren’t perfect but they are a way to tap retirement funds penalty free and I will be using in the future as I have over half of my equity investments within retirement accounts. South of a mil, North of a half. Let me add that I think your blog is outstanding.
A business thrives or fails depending on its marketing and system for generating leads. You need leads to make sales. No audience or exposure means you won’t get fresh faces checking out what your business does. Too many entrepreneurs spend all their time on the “busy work” and not enough on audience building. There are some great ways to build an audience and generate new leads:

Whether you know how to flawlessly apply eye makeup or build a wooden shelving unit, you can create an online course or video for others to follow. Websites like Udemy and Teachable allow you to build a course, such as how to learn a new language or write a cover letter. Once you build your course and set the price, there’s little work to be done. You’ll receive residual income from each person who signs up to take your course.


Nice list. What keeps my family from getting more streams is the time it takes. I would actually be willing to work part time in medicine and make less money with a side-hustle just to keep things fresh and prevent burnout. That requires some degree of FI and some time to read about the new endeavor. Maybe when my kids are both in school, we we see. Until then, I’ll keep reading your posts for ideas.
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.

Let’s say you just decided to sign up for the Chase Sapphire Preferred® card. Once you had the card in hand, you could begin using it for purchases and earning cash back for every swipe. For every dollar you spend on regular purchases, you’ll get 1 percent back in the form of rewards. For dining and travel purchases, on the other hand, you’ll score a smooth 2 percent back.


While it sounds like an ideal income stream, there are more specific benefits of residual income. For instance, unlike a salary, someone does not need to remain tied to the same location in order to earn income. He can move halfway around the world and still make the same residual income as he would if he stayed in the same location as his business.

Now, how do you do it? Building a passive income will require some work up front, but choosing a method that plays to your strengths will yield the most success, and it can even become a fun hobby! Have an aptitude for photography? License your photos to stock photography websites. Or maybe you’ve always wanted to invest? Learn how with a robo-advisor. No matter what your strengths are, we’ve gathered 35 ideas for different ways you can generate passive income and build your wealth.
Cantillon develops a circular-flow model of the economy that shows the distribution of farm production between property owners, farmers, and workers. Farm production is exchanged for the goods and services produced in the cities by entrepreneurs and artisans. While the property owners are “independent,” the model demonstrates the mutual interdependence between all the classes of people that Adam Smith dubbed the “invisible hand” in The Theory of Moral Sentiments (1759).[7]
But nowadays, there is so much opportunity if you search for brand-suitable domains and also keyword-rich or otherwise popular names on the myriad of new domain name extensions like .io, .at etc.  And I should know, because I’ve paid several domain squatters a king’s ransom to purchase these sorts of domain names in the last few years!  Continue reading >
During the somewhat turbulent August of 2015, I valued the S&P 500 using the classic discounted cash flow model as described here. With the market reaching the 2100 level once again despite a very poor earnings prognosis and slowing GDP growth, it seemingly is a good time to re-evaluate. Rather than updating numbers from just eight months ago, an alternative method to valuing the S&P 500 is employed.
Managerial accountants define residual income as the amount of operating revenues left over from a department or investment center after the cost of capital used to generate the revenues have been paid. In other words, it’s the net operating income of a department or investment center. You can also think of it as the amount that a department’s profits exceed its minimum required return.

I’ve got a $185,000 CD generating 3% interest coming due. Although the return is low, it’s guaranteed. The CD gave me the confidence to investment more aggressively in risk over the years. My online interest income has come down since I aggressively deployed some capital at the beginning of the year and again during the February market correction. You’ll see these figures in my quarterly investment income update.
The other point is that it is pretty easy to get started.  You don’t need to be super rich, and you don’t need a lot of time to get started.  To say it requires no time would be a lie, but you don’t need to make anything listed above your life.  You can work at your job, invest your excess income, save to buy a rental property or rent out a room in your current house, and you start a side job online without breaking a sweat.
You have one of the best financial websites on the web. Loved this post. Love that you post all the streams of passive income you have. Most of my money is in in stocks and CDs which generate about 70- – 80 k a year in passive income. My biggest mistake was selling a duplex in San Jose, my only other rental property besides my primary residence. Looking into the crowdfunding real estate.

Recently, the residual income (RI) model has become very popular in valuation because it purports to measure "value added" by explicitly taking into account the cost for capital in the income statement. Some proponents of the residual income approach have even suggested that the RI model is superior to the discounted cash flow (DCF) method and consequently, the DCF model should be abandoned in favor of the RI model. The residual income model is seductive because it purports to provide assessments of performance at any given point in time. The claim that the RI model is superior to the DCF model in valuation is puzzling because the RI model is simply an interesting algebraic rearrangement of the DCF model. Since the same information is used in both models, it is not unexpected that both models should give the same valuation results.
With the way the economy is going Multiple streams of income is the way to go if you know what your doing. I luved your insight and your so right there are so many ways. The best way that i know of is to brand oneself cause people dont join business they join YOU. Like , trust is key ingredient along with building your list after all the money is in the list or should i say the people in the list. The best part with the system im presently using is i still get paid with affiliate even if they don’t join my primary biz…
There was a time when CDs would produce a respectable 4%+ yield. Nowadays, you’ll be lucky to find a 5-7 year CD that provides anything above 2.5% The great thing about CDs is that there are no income or net worth minimums to invest, unlike many alternative investments, which require investors to be accredited. Anybody can go to their local bank and open up a CD of their desired duration. Furthermore, a CD is FDIC insured for up to $250,000 per individual, and $500,000 per joint account.
Building a website still remains a viable way of earning passive income online despite it being such a competitive venture. Since the internet is saturated with blogs, an entertaining website featuring quizzes or games is a good alternate. Such websites are not too difficult to make and they are easy to promote on social media. They can attract visitors, who will spend a significant amount of time on the site, in droves. Once a site starts recording several thousand visits each day, use the Google AdSense system to start earning revenue through advertising while you relax.
After employment, I think that most individuals gain income diversification through investing.  It is important to look at why we invest: because at some point we plan on using this money for something.  For most, it is saving for retirement, and the investing is done through vehicles, such as a 401(k) or IRA.  But investing is not just about stashing money away for a rainy day – that is what an emergency fund is for.  Investing is about having enough capital to generate income.
I guess I just don’t understand why the specific importance of focusing on “dividends” instead of focusing on the total return of your investment, including stock appreciation. I don’t really care if a company decides to issue a dividend or not; presumably, if they don’t issue a dividend, then they’re doing other things to increase the value of the company, which will be reflected in the stock price of the company. As an investor, I can make money by selling a percentage of my holdings or collecting dividends, and I don’t really care how that’s divided up – it’s an artificial distinction.

In addition to opening a brokerage account, you can also invest in peer-to-peer lending firms like Lending Club. I’ve been using Lending Club for a few years, and my net annualized return was 6.02% percent last year. Picking the right investments is easy since the platform offers automatic investing, but you can also pick your own notes if you're brave and want to learn the best ways to leverage the Lending Club platform.
Well, the number seven may not be magical, but it does seem these concepts are two sides of the same coin. Yes, the streams may eventually make the millionaire, but it’s also true that the millionaire understands the importance of multiple income streams–without them, after all, he or she may never have broken the million dollar mark. So, he or she continues to increase their streams of income.
Passive income is defined by Wikipedia as “income resulting from cash flow received on a regular basis, requiring minimal to no effort by the recipient to maintain it”. And while the ‘no effort’ part of the definition is very enticing, the truth is that generating passive income requires a massive amount of effort. And this effort needs to be exerted up front and then sustained for months, and maybe even years, until your venture starts returning profits. And even then, you'll have to monitor your income streams to make sure it’s all going smoothly. It's certainly not an easy endeavour, no matter what most people may tell you, and it requires an investment of something far more valuable than money: time. But if you are up for it, then here are 14 ideas that you can use to start earning passive income.
I have had a LC account for almost 2 years. Invested 5k. A lot of very small loans. Unfortunately I had to invest though Folio FN. The fees reduce your return. Now, they are not even allowing that. My interest and return of principal are not being reinvested. I talked with LC and they are working on it for my state. Even if I can obtain access to the prime portfolio, I would only place 10 percent of my cash here and would reinvest for at least 3 years. I am still concerned about what would happen when a recession hits.

One great way to generate a passive income is through affiliate marketing. Now, this does depend on the size of your list. Yes, size matters when it comes to your list. Especially if you're looking to make some serious money and do it on autopilot. But, list-building takes time. It doesn't happen overnight. And you need to add value to your list or you become obsolete.


The book is not bad but it's not that great either. Think of it as an idea book in which you see him mention something and then research it futher. The rambling just becomes too much as you move along to the point where it becomes annoying to read. The tone the author uses is very nonchalant and he doesn't really explain anything. Ideas are just thrown out.
Start an affiliate marketing website: This passive income model works for individuals who already own a bog or website. Here, your business goal is to contact companies and offer to tout their products and services, usually for a fee or a commission, based on the number of page views you get. Studies show that more people spend time online and less watching TV or reading the newspaper. Take advantage of that leverage and earn income from the tens of thousands of companies who want to reach an audience - maybe your audience. Either reach out to companies directly or go through a site like ClickBank, which offers affiliate marketing opportunities.
The thing is, I’m not talking about buying brick-and-mortar buildings. I tried that many years ago with my father-in-law, and with devastating results. We tried to buy a duplex once, and the deal fell apart after we realized we weren’t really prepared for the purchase. I secretly wanted to become a landlord, but at the same time, I knew it wasn’t for me.
The key thing to note in those various streams is how few of them rely on my active participation on a daily basis and how they are fueled from savings. My active participation is in the blogs and $5 Meal Plan. Everything is passive, outside of routine maintenance like updating my net worth record, and none of them would be possible if I didn't have the savings to invest it.
I’m feeling inspired! I’ve been a PT for 19 years and I feel I have so much experience to offer but have been so intimated by starting a blog. I also subscribed to Michelle’s website but wasn’t sure it was for real. Is it for real? After reading this I feel like it’s time to take the plunge, I need to start a blog, I have so many ideas and even course ideas. I want to get away from the paperwork that plagues our healthcare system but not leave the field so the blog just might be the answer. I’ve been a landlord for 15 years now, great investment for sure, renters paid for the down payment of our house and should hopefully help pay for our kids college. I’d love to have one more! Thank you for the inspiration, wish me luck with my blogging!
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