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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 that it compounds and grows quicker. But 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 you make without putting in much work. The money will flow in without too much being demanded of you. In some scenarios it might be long-term recurring income, and in other instances it might be short lived or inconsistent.

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

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

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

Ive been blogging full-time for 10 decades and Ive sold ebooks and courses in the past. Theyre great ways to earn money, I simply dont consider them to be passive, in the majority of cases. .

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

Now lets take a peek at a few of the greatest ways to produce passive income. A number of them are investments which will need some money to start with. Other folks wont require any money to get started. If you dont have the money to invest now, consider starting with the methods that dont need any money, and then utilize that money you make to invest. .

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Your first financial priority must 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 go to this web-site savings account at a local bank which pays you a terrible interest rate. You can open a high yield savings account or money market account with an online bank that will earn a lot greater 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 simple, and can be done online. .

Some companies consistently pay dividends to their shareholders. As a trader, you can re-invest the dividends to buy more shares of this stock, or take the dividends in money. Reinvesting will let you own more shares, which leads to more dividends in the future (ideally).

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The companies that consistently pay dividends tend to be large companies with a long track record of success. Because of this, these investments tend to be considered less risky than the stock exchange in general.

Dividend stocks can be a terrific investment whether or not you want to reinvest each of the dividends on hold on to the stock for a long time, or use the income generated throughout the dividends.

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

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Peer-to-peer lending (or P2P) is becoming 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 receives a loan by an investor.

In some cases the borrower may not be able to be eligible for a loan through a traditional bank. And in many circumstances the debtor gets a better interest rate than they could receive from a bank. As an investor, you can earn a good return as well.