There is a huge difference between passive and non-passive income. With non-passive income, the second you stop working, the money stops coming in. With passive, you can do whatever you want and the money keeps on coming.
Most people have the “job mentality.” In other words, they believe you always have to work to make money.
Nothing could be further from the truth. Money is only half the equation. The other half is time. Somebody who is makes one hundred dollars a year and works eighty hours a week is much less powerful than someone who makes the same amount but only works four hours a week. This is because the second person has far more time to focus on other things in life including fidning ways to spend their money.
Passive income is powerful and should be the goal. This will free up time your so you can spend it living your dreams, instead of doing mandatory income-producing work.
What are the best passive income strategies? There are a number that can work.
Here are three of our favorite:
#1) Stock investing
This is one of the most famous examples of passive income. Here you simply invest a certain amount of money in stocks. All the profit that comes from that is achieved entirely without effort.
However, not all stock investing is passive. For instance, day trading requires you to constantly be buying and selling to earn money.
Fundamental analysis does not. This is where you invest with the intention of holding that investment for a long time period. It requires much less effort, and is therefore more conducive to the passive income goal.
#2) Real estate investing
Some forms of real estate investing are better for passive income than others. Renting is the way to go if you want your money to work for you.
This is where you would buy some property with financing. As long as you can rent it out for more than you are paying per month, that’s a long-term passive income stream. Then you just keep finding more properties.
Flipping is similar to day trading. This is because the only way to keep earning is to continually find more houses to sell. That’s why renting is the best passive income strategy.
#3) Online marketing
The internet is hands down the best place to get passive income. Why? This is because there are so many different ways to achieve it.
Think about it: once you find a profitable steam of traffic, you just set it and forget it. That will continue making you money indefinitely.
What’s the best way to make money online?
It really doesn’t matter which strategy(ies) you use, because there are many ways to make passive income. This could be with Google AdSense, affiliate marketing, drop-shipping, selling information products, and so on.
Each of these methods will require some effort at first. If you are willing to put forth the initial work, you can benefit for years to come. It’s much smarter to spend your time now investing for the future than to look for the quick buck now, and have nothing down the road.