You’ve probably heard of ‘passive income’ a lot but do you understand what it really means?
Passive income is any money earned in a way that doesn’t require very much effort. That’s why we say you can earn ‘even when you’re asleep’. It’s money that just keeps coming in as opposed to exchanging your time for money – like in your job or business.
Ideas
There are lots of passive income generating ideas that require a lot of work to start with like developing a blog or a digital product. You may prefer something offline like buying a property to rent out. Once the work is done, they will hopefully earn you money although there are definitely no guarantees. I know from running a digital agency for 10 years just how many ideas cost a lot of money and still fail! One of them was my own app for the real estate industry!
Developing a way to generate passive income gives so many benefits. You can expand your wealth-building base for a range of reasons from security and peace of mind through to totally changing your lifestyle. You can buy a home or 2 or 3, travel the world, pay for education for your kids, ditch the 9 to 5, or whatever your heart desires.
What else can I do?
- Longevity – how long have they been in business. Generally the longer the better.
- Get some testimonials from others who have been with the business for a while and are generating good income and can withdraw at the very least their returns regularly.
