When it comes to earning money, there are many options that exist outside the typical 9-to-5 office job. The most popular method of generating revenue in this way is called passive income.
What Is Passive Income?
Passive income is any income earned without active involvement. In other words, you’re still involved, but not in the day-to-day or on-the-ground sense. This is money that usually supplements one’s primary job. But less work is not the same as no work. Here are three interesting ways to earn passive income.
Rental income is one of the most common sources of passive income. For those thinking of trying their hand at it, first consider the building’s location. Next, get to know your prospective tenants. Be sure to budget for taxes and other standard expenses. Learn what you need to charge in rent to turn a profit and how the neighborhood can affect property values.
It’s important to thoroughly research a company you’re considering investing in. Making strong investments in stable companies can produce regular earnings. But because of stock market fluctuations, this form of passive income, while relatively straightforward, is not without risk.
If the uncertainty of Wall Street scares you, perhaps making long-term and generally safer investments in bonds is the wiser choice. Treasury bonds are one example of a strong investment for the risk averse.
Have you thought of trying to earn passive income? Share your stories in comments.