How great would it be to have a revenue stream (or three) that provides you with income without you really trying? That’s passive income.
There’s nothing wrong with having more money in your pocket, right? Of course not! Especially if that extra cash helps knock out your debt, pay your rent or mortgage, or fund your retirement.
Passive income can come from a number of sources:
1. Interest off savings you’ve socked away
2. Dividends from stocks you own
3. Advertising income from a web site
4. Book or music royalties
5. An invention you’ve patented
I know a few people who are looking to go this route. But it’s important to remember that you can’t truly COUNT on passive income. It’s nice to have, but you never know exactly how much it’s going to net you. Unless you have multiple revenue streams, you’ll still need a day job. For example, I get royalties payments for my book, “Images of America: Belleville,” twice a year. Each check could be $200, or it could be $50. While $100 or $400 a year is nice to have, it’s not going to pay the bills. But I can put that money toward credit card debt or savings — I usually choose the latter.
Initially, creating passive income requires SOME of your time — setting up a blog or a website, writing that book, making those investments. But once you have a (fairly) steady stream of income, it will be worth it.
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