Passive income refers to earnings derived from activities in which the individual is not actively involved. Here are some common ways to generate passive income:
- Investments:
- Dividends: Earnings from stocks that pay dividends.
- Bonds: Interest income from bonds.
- Real Estate: Rental income from properties.
- Peer-to-Peer Lending: Interest from loans made to individuals or small businesses.
- Online Ventures:
- Affiliate Marketing: Earning commissions by promoting products or services.
- Blogging/Vlogging: Ad revenue from a blog or YouTube channel.
- Digital Products: Selling e-books, online courses, or software.
- Dropshipping: Running an online store without managing inventory.
- Royalties:
- Books: Royalties from book sales.
- Music: Earnings from music streaming or licensing.
- Automated Businesses:
- Vending Machines: Revenue from vending machine sales.
- Laundromats: Income from self-service laundromats.
- Intellectual Property:
- Patents: Licensing fees from patented inventions.
- Trademarks: Income from brand licensing.
Each of these methods requires an initial investment of time, money, or both, but they can eventually provide a steady stream of income with minimal ongoing effort.