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At first you may only be making a tiny amount of money passively, and you might even want to re-invest that money so it compounds and grows quicker. However, with some time, its potential to create 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 that you earn without putting in much effort. The money will flow in without too much being required of you. In some scenarios it might be long-term recurring income, and in some other cases it could be short lived or inconsistent.

In some circumstances 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 discussion. Most lists that youll find online will include things like blogging, writing e-books, or creating your own course. Im not including those thoughts in this post because, in my own 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 classes will require on-going customer support, and youll need a consistent traffic source in order to continue to create sales. It is possible and there are people who've been able to get it done passively, but they compose a small percentage of people who actually set out to get it done.

Ive been blogging full-time for ten years and Ive sold ebooks and classes in the past. Theyre great ways to make money, I simply dont consider these to be more passive, in most cases. .

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Just about any business can be a source of passive income when youre paying other people to run the business. That is true with both online and traditional businesses. This opens up even more possibilities than what will visit this site right here be recorded here.

Now lets have a look at some of the best ways to produce passive income. A number of these are investments that will need some money to begin with. Other folks wont require any money to begin. In case you dont have the money to invest now, try starting with the approaches that dont require any money, and then use that money that you make to invest. .

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Your first financial priority must be to develop an emergency fund that can cover all your living expenses for a couple months. But dont put this money is a checking account or savings account at a local bank which pays you a horrible interest rate. You can open a high yield savings account or money market account with an online bank which will earn a much better 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 original site fast and simple, and can be done online. .

Some companies consistently pay dividends for their shareholders. As a shareholder, you can re-invest the dividends to buy more shares of the inventory, or take the dividends in money. Reinvesting will allow you to own more stocks, which leads 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 read what he said or not you want to reinvest all the dividends on hold on to the stock for quite a long time, or use the income generated through the dividends.

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

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Peer-to-peer lending (or P2P) has become extremely popular in recent years. Borrowers and lenders can be matched up through a website or marketplace. Instead of going to a bank, the borrower gets a loan by an investor.

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