What is passive income?

Photo by Sharon McCutcheon on Unsplash

Who doesn’t want to become rich sleeping? With a passive income this is possible! By investing or by delving into a particular form of passive income, you ensure that you build up a permanent income. How you do that can be found here!

What is passive income?

A passive income is an income for which you only have to do something or work a few times, in order to keep a permanent income afterwards. Years after you have made this effort, you continue to benefit from the investment you have made. You could even think of it as getting rich while sleeping.

Generating passive income

There are many ways to generate passive income. In fact, the possibilities are endless! Still, some forms are more passive than others, but it is important that if you want to generate a passive income you do choose something that suits you. Below are 6 well-known forms to generate a passive income.

Invest in real estate

Investing in real estate is something that will really make you sleepy rich. By buying a piece of land or a house somewhere in the south of Spain you can make a lot of money. Your income will consist of renting out your vacation home, for example.

Write a book

If you write a book, you will continue to receive royalties as long as the book is sold. Keep in mind that writing a book is a big job and a lot of money goes into marketing, but the royalties really keep coming in for years.

Use affiliate marketing on your website

Do you already have a website? Then there’s really nothing simpler than affiliate marketing. With different programs you can become partners with brands and through paid links you send the visitors to your website in exchange for a small commission.

Start dropshipping

To start dropshipping you need a website and a manufacturer with products. If you sell these products on your website, they will be shipped directly from the factory to the customer, so you don’t have to look after them any further.

Create an online course

Do you have a particular talent? Then create a course! Creating it may be a big job, but once it is done you will have a nice monthly income. As long as the course is online, people will buy it.

Sell photos

This is basically the same idea as the book and the course. You take photos once, you put them on a website with stock photos and as long as they are there people keep downloading them and you will receive a certain amount each month.

Photo by Tezos on Unsplash

Passive income crypto

One of the most well-known forms of passive income in 2022 is crypto. Crypto is a form of investing and that is a passive way to generate an income. This is because you are not constantly buying and selling coins; you make an investment and then you wait. You can always choose to buy more or sell coins, but this is not something you are doing day and night. With a little luck, the value of a coin keeps going up until you become a millionaire.

A passive income is of course very nice to have, but it does take some time and/or money before you can really call it a monthly income. There are of course many more possibilities when it comes to making passive money.

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