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Initially you may only be making a small amount of money passively, and you may even want to re-invest that money so it compounds and grows faster. However, with a few time, its potential to make enough passive income you could quit your job or retire .

Passive income can be a small divisive topic. In general, passive income is any money that you make without putting in much work. The money will flow in without too much being required of you. In some cases it might be long-term recurring income, and in some other cases it could be short lived or inconsistent.

In some circumstances youll need to put in some effort up front, but then it wont require just as much effort in the long run when youre making the money.

What qualifies as passive income is up for discussion. Most lists which youll find online will include things such as blogging, writing e-books, or creating your own course. Im not including those ideas in this informative article because, in my own opinion, all of them require an excessive amount of effort to be considered as passive.

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Blogging will constantly require on-going work, either by yourself or by other people that youre paying.  Selling ebooks or courses will require on-going customer support, and youll need a consistent traffic supply in order to continue to create sales. It is possible and there are people who've been in a position to get it done , but they make up a small percentage of people who actually set out to do it.

Ive been blogging fulltime for 10 decades and Ive sold ebooks and courses in the past. Theyre great ways to make money, I simply dont consider these to be more passive, in the majority of cases. .

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Just about any business can be a source of passive income when youre paying other people to run the business. That is true with both online and traditional businesses. That opens up even more chances than that which will be listed here.

Now lets have a peek at a few of the best ways to make passive income. A number of these are investments that will require some money to begin with. Other folks wont require any money to get started. If you dont have the money to invest now, try starting with the approaches that dont need any money, and then utilize that money that you my explanation make to invest. .

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Your very first financial priority should be to develop an emergency fund that will cover all your living expenses for a couple months. But dont put this money is a checking account or savings account at a local bank that pays you a horrible interest rate. You can open a high yield savings account or money market account with an online bank that will earn a lot better return for you.

My wife and I maintain our emergency fund in a money market account with CIT Bank. At the moment (October 2018) CIT money market accounts are earning 1.85% APY and CIT savings accounts are earning 1.55% APY. Thats 22x the national average! Opening an account with CIT is fast and easy, and can be done online. .

Some companies consistently pay dividends for their shareholders. As a shareholder, you can re-invest the dividends to purchase more shares of the inventory, or take the dividends in cash. Reinvesting will allow you to own more shares, which leads to greater dividends in the future (ideally).

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The companies that consistently pay dividends tend to be large companies with a long history of success. As a result of this, these investments tend to be considered less risky than the stock market in general.

Dividend stocks can be a great investment whether or not you want to reinvest each the dividends on hold on to the stock for quite a long time, or use the income produced through the dividends.

For much more detail on the topic read Investing in Dividend Stocks in Investopedia. To get a list of those shares, see this collection from Dividend.com and this collection from DividendValueBuilder.com.

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Peer-to-peer lending (or P2P) has become extremely popular in recent years. Creditors and lenders can be matched up via a website or market. Instead of going to a bank, the borrower gets a loan from an investor.

In some situations the borrower might not have the ability to qualify for a loan via a traditional bank. And in many cases the debtor gets a much better interest rate than they go to my blog might get from a bank. As an investor, you can earn a good return too.