8:16 AM
Frugal Mom
There are many ways of earning Passive Income. But first, what is Passive Income means. According to Wikepedia "Passive Income is an income received on a regular basis, with little effort required to maintain it." In simple terms, its an income you earn even if you are sleeping. Right now, I got one little investment that I earn passive income from. I lent money to someone and it earns _% every month and I like the way it works. Its just you need to follow up that person when its due and sleep days for the rest of the month. It worked for me, hope it will work for you too. I will give you some other examples i know that you can earn passive income while you sleep. The list is endless so here it goes.
1. Rent - Whether you own a building, room, or anything that can be used by somebody else, you can lease or rent it out to them. Its just a matter of trust you put into that person if it is a thing that is to be used. If its a property, it is much better to protect yourself by binding yourself with a contract.
2. Stocks and Bonds - Stocks are shares of company that is usually being traded in the stock market. Bonds are liabilities of a company to a person or entity. Stocks are considered to earn passive income if you will just let your money grow with it. I mean, you just invest to a certain X Company's stock and just let it appreciate through time. You derive passive income from the dividends that are declared by the company. Bonds earn its passive income through its interest being yield when the maturity date comes.
3. Network Marketing - When you become an affiliate or network marketer, your goal is not just to sell the products; you will also work to recruit other people to become an affiliate, as well. When they sell anything, you earn a percentage of the commission. With enough recruits in your downline, you could earn several thousand dollars a month in passive income. This is extremely rare, of course — and watch out for scams and hype.
4. Bank Accounts - If you like saving your money in banks, this is for you. The money earned from interest seem small but the longer you keep it the bank, the more money you will make. Try to look for high interest savings account in your local banks.
5. Writing a book - Earning from writing a book are called Royalties. Every time your book is being printed, a portion of that will go to you as royalties. Even you have wrote it many years ago, you will receive the same income for the royalty you have from that book.
6. Writing for Web - Another way to earn passive income from your writing is to join some of the online article sites. Many of them pay you for the views your articles get each month or when someone clicks on ad that has been placed on your article’s page. Many writers are earning as much as $300 or more each month in passive income from these sites. Hubpages.com, Squidoo.com, and eHow.com are just a few examples.
7. Building Websites - This is what I am currently learning. Having your own websites, making enough traffic and leasing out a space in your site will earn money for you. You will benefit for the advertisers and also for the traffic you will get from it. Try to study SEO (Search Engine Optimization) and you will be creating a money machine out of your sites.
8. Lending Clubs - Here in the Philippines, most of the people who are practicing this are mostly Indians. We call them "5-6". They earn a certain percentage from the money they lent to other people and mostly they collect everyday. You can do the same too, but be sure that the money you will lend to others will be paid back to you. Or you will just getting your headache if ever. I am currently doing this, and the income is surely great. But I dont do it my own, I have someone to collect for me and the interest I get from it are invested to some other passive income generating mediums. Isnt that great!
9. Selling Insurance - Whether it is life, non-life or anything that can be put to insurance, sell it. Everytime your client renews their insurance, you will earn another commission. Signing up several customers each week ensures your future income, as the majority of your customers will renew their policy each year.
The things I have mentioned are just a few of the sources of getting your passive income. If you are exercising one from the mentioned above, congratulations.You are on your way to be financially free. As most people already work forty to fifty hours each week, the last thing they want to do is put more time in to make more money. Instead, they could be earning passive income. By investing some time into learning the different methods of passive income generation. With passive income, you could stop working so many hours and still make more money than you were before. It is all a matter of understanding how wealth building works and how to make it work for you.
1. Rent - Whether you own a building, room, or anything that can be used by somebody else, you can lease or rent it out to them. Its just a matter of trust you put into that person if it is a thing that is to be used. If its a property, it is much better to protect yourself by binding yourself with a contract.
2. Stocks and Bonds - Stocks are shares of company that is usually being traded in the stock market. Bonds are liabilities of a company to a person or entity. Stocks are considered to earn passive income if you will just let your money grow with it. I mean, you just invest to a certain X Company's stock and just let it appreciate through time. You derive passive income from the dividends that are declared by the company. Bonds earn its passive income through its interest being yield when the maturity date comes.
3. Network Marketing - When you become an affiliate or network marketer, your goal is not just to sell the products; you will also work to recruit other people to become an affiliate, as well. When they sell anything, you earn a percentage of the commission. With enough recruits in your downline, you could earn several thousand dollars a month in passive income. This is extremely rare, of course — and watch out for scams and hype.
4. Bank Accounts - If you like saving your money in banks, this is for you. The money earned from interest seem small but the longer you keep it the bank, the more money you will make. Try to look for high interest savings account in your local banks.
5. Writing a book - Earning from writing a book are called Royalties. Every time your book is being printed, a portion of that will go to you as royalties. Even you have wrote it many years ago, you will receive the same income for the royalty you have from that book.
6. Writing for Web - Another way to earn passive income from your writing is to join some of the online article sites. Many of them pay you for the views your articles get each month or when someone clicks on ad that has been placed on your article’s page. Many writers are earning as much as $300 or more each month in passive income from these sites. Hubpages.com, Squidoo.com, and eHow.com are just a few examples.
7. Building Websites - This is what I am currently learning. Having your own websites, making enough traffic and leasing out a space in your site will earn money for you. You will benefit for the advertisers and also for the traffic you will get from it. Try to study SEO (Search Engine Optimization) and you will be creating a money machine out of your sites.
8. Lending Clubs - Here in the Philippines, most of the people who are practicing this are mostly Indians. We call them "5-6". They earn a certain percentage from the money they lent to other people and mostly they collect everyday. You can do the same too, but be sure that the money you will lend to others will be paid back to you. Or you will just getting your headache if ever. I am currently doing this, and the income is surely great. But I dont do it my own, I have someone to collect for me and the interest I get from it are invested to some other passive income generating mediums. Isnt that great!
9. Selling Insurance - Whether it is life, non-life or anything that can be put to insurance, sell it. Everytime your client renews their insurance, you will earn another commission. Signing up several customers each week ensures your future income, as the majority of your customers will renew their policy each year.
The things I have mentioned are just a few of the sources of getting your passive income. If you are exercising one from the mentioned above, congratulations.You are on your way to be financially free. As most people already work forty to fifty hours each week, the last thing they want to do is put more time in to make more money. Instead, they could be earning passive income. By investing some time into learning the different methods of passive income generation. With passive income, you could stop working so many hours and still make more money than you were before. It is all a matter of understanding how wealth building works and how to make it work for you.
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