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At first 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. But with a few time, its possible to make enough passive income you could quit your job or retire early.

Passive income can be a bit of a divisive topic. In general, passive income is any money that you earn without putting in much work. The money will flow in without too much being demanded 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 cases youll need to put in some effort up front, but then it wont need just as much effort in the long run when youre making the money.

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

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Blogging will always require on-going work, either by yourself or from others that youre paying.  Selling ebooks or courses will need on-going customer service, plus youll need a consistent traffic source in order to continue to create sales. It is possible and there are people who have been able to do it , but they make up a small percentage of people 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 these 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. This is true with both online and traditional businesses. This opens up even more chances than what will be listed here.

Now lets take a look at some of the greatest ways to make passive income. A number of them are investments which will need some money to begin with. Other folks wont need any money to begin. In case you dont have the money to invest now, consider starting with the methods that dont require any money, and then utilize that money that you make to invest. .

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Your very first financial priority should be to develop an emergency fund that can cover all your living expenses for a few months. But dont put this money would be a checking or 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 which will earn a lot greater return for you.

My spouse and I keep our emergency fund in a money market account with CIT Bank. At the moment (October 2018) CIT money market accounts are earning 1.85percent 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 to their shareholders. As a trader, you can re-invest the dividends to purchase more shares of this inventory, or take the dividends in money. Reinvesting will let you own more shares, which contributes 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 exchange in general.

Dividend stocks can be a terrific investment whether or not you want to reinvest each the dividends on hold on to this stock for quite a look at this website long time, or use the income produced throughout the dividends.

For much more detail on the subject read Investing in Dividend Stocks at Investopedia. For a list of those shares, visit this collection try this out out of Dividend.com and this collection from DividendValueBuilder.com.

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Peer-to-peer lending (or P2P) is becoming extremely popular in recent decades. Borrowers and lenders can be matched up via a website or marketplace. Instead of going to a bank, the borrower receives a loan by an investor.

In some situations the borrower might not have the ability to be eligible for a loan via a traditional bank. And in many circumstances the borrower gets a better interest rate than they might receive from a bank. As an investor, you can earn a great return too.