Welcome to To Your Journey To Earning Passive Income Online
In this full guide on earning passive income online, we will first delve into the definition of passive income, all that it encompasses, and how we can make passive income online. The aim is to educate and empower you with the basic knowledge of passive income and then equip you with the best tips, tricks and techniques that we have tested to earn passive income online.
The world of passive income can be a fun and exhilarating one especially when you have the skills to protect yourself from dire mistakes. Simply knowing the right ways to earn passive income can help you quit that job you hate, gain multiple streams of income online, pay off debt and help you achieve your financial goals.
We hope you gain much insight from this guide and that at the end of this long yet fruitful journey you will no longer worry about money and live the life that you dream.
Let’s work at it together!
What Is Passive Income?
According to Investopedia, passive income is earnings derived from a rental property, limited partnership, or other enterprises in which a person is not actively involved. This is the term used by financial institutions such as your national tax department.
But this term has a layman meaning as well. It is the money earned routinely with little to no hassle on your part. And this can range from businesses and stocks to cryptocurrency, affiliate marketing and blogging. The definition of passive income has evolved with the global market. Simply put, the goal of earning passive income is to make money while you sleep.
But many new and aspiring earners come with the misconceived idea that you don’t have to put in work to earn passive income. And that is a complete lie. Yeah, there may be some passive income methods that don’t require much time being invested. But almost all passive income ideas require resources, whether that be your time or money.
This is not a get-rich-quick scheme.
But hopefully with these passive income ideas, after investing the time and the money, we can just kick back and let them run by themselves (with routine maintenance now and again).
Passive Income vs. Active Income -What’s The Difference?
Now that we have looked at what does passive income means, it’s now time to look at its counterpart, active income. Obviously, by its name, it is the complete opposite of passive income which means you will have to devote time and the effort to earn an income.
But to achieve financial freedom, passive income has always reigned supreme. To reap the benefits of active income, you have to keep spending time and effort on your job. Here, time equals money. On the other hand, for passive income, you don’t have to continue to investing your time to gain earnings.
Now the question is which is the better option for you? Passive income vs earned income?
Well, the answer is simple. It depends on your situation.
At times, active income can be:
easier to get,
“more secure”, or
just a part of your goals like becoming a doctor.
While passive income:
can be more difficult to start and earn a reliable income
the potential earnings are much higher
the goal of financial freedom is more attainable
Your path is simply up to you.
Passive Income Vs. Portfolio Income
Portfolio income is defined as the income we earn from dividends, stocks and other forms of investments. According to Investopedia, you have earned income, passive income and portfolio income. However, we laymen consider portfolio income as a part of passive income since it also requires little to no effort to gain.
Now that we have outlined what is passive income, and how it may be better than earned income when it comes to financial freedom. It is time for us to understand the benefits of earning a passive income and why it’s so important.
Here is the short answer:
More Living Paycheck to Paycheck
More Money To Reach Your Goals
More Freedom and Financial Independence
Free To Travel
Just More Fun & Invigorating
But we urge you to read the full article to learn more.
Passive income means earning an income without much effort. And if you can earn $150 each day from your passive income streams, that’s $4500USD a month, in your pockets. Now, if you have three additional income streams that also generate $4500 a month, that’s $13500 a month in total. The great thing about passive income is that it can increase exponentially if you increase the number of income streams or the returns on each investment.
After which, to ensure that you are generating wealth with passive income, you will have to reinvest your earnings to increase your returns for the next period. That means not falling into the trap of spending your earnings but rather using it to generate more income, hence making you rich.
Another trap that you should also watch out for is retiring too early. Now, I know that I am a strong advocate of retiring at an early age. But, I never advise retiring too early. This is shown when you retire after the passive income you have generated is only enough to cover your expenses. We recommend that before retiring your income streams should be enough to cover four things:
Your daily expenses
Your savings or emergency funds
Your future investments for generating more wealth
If that is covered, then you should be able to retire without having any worries while creating additional wealth.
Online Passive Income Ideas
There are many online passive income ideas and opportunities that anyone can take advantage of. All you have to do is find the best passive income idea that fits your interests, goals and situation. So to make things much easier for you, I have compiled a list of the best ways to make passive income online.
With these ideas, you will know what is the perfect idea for you to make your own online income stream. So my aim is that the following methods are tested and tried, and provided with accurate and honest figures and reviews.
Now, without further ado, let’s dive into this list.
Now you may be hearing this term everywhere, especially when it comes to generating passive income online. And there must be a huge reason why. Affiliate marketing takes into account being the link between the audience that you have built and the products and services that they need. The plus side is that as an affiliate marketer, you can earn a small commission.
Let’s look at the entire picture by clicking the link to learn more.
Blogging is the act of writing a blog post. Blogs are usually written by one or more people, but can also be created for academic purposes. A person who writes blogs is called a blogger. The term “blogging” has been in use since 2003 and was generally used to describe what we now know as social media platforms such as Facebook and Twitter. Nowadays, blogging refers to any type of website that contains personal thoughts and opinions about topics ranging from fashion to politics to cooking,
The great thing about blogging is you can earn money passively. Click the link below to dive into the world of blogging.