You have no doubt heard the terms “passive income” and “residual income” quite a lot, but what is passive income about and how do you get to earn a passive income?
Passive Income VS Residual Income
Both passive and residual income are pretty similar. Passive tends to refer to any ongoing income stream where no work or effort is required to continually receive the income.
An example would be bank interest on a savings or investment account. Your capital is just sitting in the bank vault earning you money.
Residual income is also passive in a way, although ongoing work or maintenance may be required. Generally residual income means getting paid over and over again for doing the work once.
A great example of residual income is earning royalties on a book you wrote. You may have written the book two years ago, but are still receiving regular royalty payments for ongoing sales.
I make $1000s in passive income every single month with my online affiliate marketing business. It's pretty easy when you follow the Wealthy Affiliate training. It's FREE to get started, too, so nothing to lose by checking it out!
Advantages Of A Passive Income Stream
If you can set up a number of streams of residual and/or passive income, it is by far and away the best way to attain wealth (and keep it). Because there are only so many hours in a week, month or year, if you have to work for every dollar (as in, be paid by the hour) then there is a ceiling on your income potential. Even if you are earning big bucks per hour, there are still only so many hours you can work.
With residual and passive income streams in place, it means your time is essentially freed up to create either more income streams, or go out and enjoy life knowing that income is coming in even when you are at play.
The only true way to wealth and financial freedom is with passive income. The more streams of passive and residual income you can set up, the better. You never want to rely on just one. If something happens to one income stream, if you have others on the go, then you are still receiving income.
If you only have the one and it dries up, then you’re suddenly in financial trouble.
The only exception is if you have a regular job and a passive income stream on the side. At least you are still covered. Even though only one income may be passive in this instance, you still have two income streams, and that gives you protection.
Passive Income = True Freedom!
Many people have money but not time, while others have time on their hands but very little money. To experience true freedom in life you need to find a way to have both.
Imagine having plenty of regular money flowing in with little effort on your part and just being able to travel or get out and enjoy life without the stress of having to constantly find ways to make more money just to pay the bills.
Wouldn’t you love to live a stress free life like the one I just painted for you?
Well, the great news is: You can!
Anyone can! You just need to know how.
Some Ideas For Setting Up Residual And Passive Income Streams
I am just going to briefly list some examples of possible passive/residual income streams before telling you about an opportunity to set up income streams that can become quite passive in time.
- Bank interest
- Royalties (books, music, apps, software, T-shirts etc.)
- Real estate investing (rent or sell for a profit)
- Residual or trailing commissions on sales
- Selling a product
- Selling an online course
- Membership site
- Vending machines
- YouTube videos and receive advertising revenue
- Stock websites (photography, music, video footage)
- Lending money for interest
- Be a silent business partner
- Outsource your workload
There are a few ideas and possibilities to get you thinking. There really are just so many ways to create residual and ultimately passive income streams, and like I said earlier, the more the better for you.
Set Up Online Businesses
The cheapest online businesses to set up are ones that promote affiliate products. This just means promoting someone else’s products for a commission. You just need a website (or sites) and some active social media accounts.
The overheads and running costs of these types of businesses is very minimal. It’s really just your time, and once you have some popular and successful affiliate sites up and running in your chosen niches (areas of interest), the income can truly become residual and passive over time; which is the end goal here.
It’s best to seek out some training so you know how to set up an affiliate marketing business and website the right way from the word go. No point wasting time making mistakes when you can get it right, at the very start, with quality training and guidance.
I recommend learning the Wealthy Affiliate way. In fact, you can join for free and give their training and community platform a trial run for absolutely nothing. If you decide it’s for you, then you can upgrade your membership and finish all the great training there. If you take a look and decide it’s not for you, then you have lost absolutely nothing.
Set yourself up for a fantastic future of fun and time and money freedom. Check out Wealthy Affiliate today and get started.
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