Passive income is earned in a way where little or no effort is required. Passive income could be made through a rental property, a limited partnership deal, royalties, or other business venture which requires little or no effort. The benefit of passive income streams is the hands-off approach. No active management is required so you get the time freedom to do as you please while earning income. Passive income produces “cash flow” or “mailbox money” as real estate investors like to call it.
Your W2 is your “earned income”. Your W2 is a great way to pay off debts or build a “bankroll” to start a side hustle or to save up to begin passive investing. Real estate is a common tax-advantaged investment that can be passive. You can watch an extensive webinar about passive income through real estate and the tax advantages here.
A few passive income streams I personally have are:
- Real Estate Investments through Limited Partnerships w/ organizations like https://thegrowthvue.com/
- Bitcoin yield earning tools earning 4-11% APY like: Blockfi, Celcius, or Ledn.io
- Dividend producing stocks that pay out quarterly or monthly.
At the moment these are the only passive income streams that I have. Long term I want to create a total of 7 differentiated passive income streams.
Other creative passive income streams are:
- youtube monitization
- affiliate marketing
- selling an ebook
- selling a digital product
- selling a video course
The digital education economy will be a 1billion dollar industry by 2025. If you have a niche you are passionate about, you should start educating people and bringing value to that community. Content creator is also one of the fastest-growing business types in the world right now. We will see more people take their lives into their own hands and create the freedom and outcomes they want with passive income, remote work, and an untethered lifestyle to any one brand or location.