Maybe such a business is owning a McDonald’s franchise or something. If one has the capital (Feasibility Score 2), then the returns might be good (Return Score 6). But the Risk Score is probably under a 5, b/c how many times have we seen franchise chains come and go? Like, what happened to Quiznos and Jamba Juice? A McDonald’s franchise was $500,000… probably much more now?
Hi there. I am new here, I live in Norway, and I am working my way to FI. I am 43 years now and started way to late….. It just came to my mind for real 2,5years ago after having read Mr Moneymoustache`s blog. Fortunately I have been good with money before also so my starting point has been good. I was smart enough to buy a rental apartment 18years ago, with only 12000$ in my pocket to invest which was 1/10 of the price of the property. I actually just sold it as the ROI (I think its the right word for it) was coming down to nothing really. If I took the rent, subtracted the monthly costs and also subtracted what a loan would cost me, and after that subtracted tax the following numbers appeared: The sales value of the apartment after tax was around 300000$ and the sum I would have left every year on the rent was 3750$……..Ok it was payed down so the real numbers were higher, but that is incredibly low returns. It was located in Oslo the capital of Norway, so the price rise have been tremendous the late 18 years. I am all for stocks now. I know they also are priced high at the moment which my 53% return since December 2016 also shows……..The only reason this apartment was the right decision 18 years ago, was the big leverage and the tremendous price growth. It was right then, but it does not have to be right now to do the same. For the stocks I run a very easy in / out of the marked rule, which would give you better sleep, and also historically better rates of return, but more important lower volatility on you portfolio. Try out for yourself the following: Sell the S&P 500 when it is performing under its 365days average, and buy when it crosses over. I do not use the s&P 500 but the obx index in Norway. Even if you calculate in the cost of selling and buying including the spread of the product I am using the results are amazing. I have run through all the data thoroughly since 1983, and the result was that the index gave 44x the investment and the investment in the index gives 77x the investment in this timeframe. The most important findings though is what it means to you when you start withdrawing principal, as you will not experience all the big dips and therefore do not destroy your principal withdrawing through those dips. I hav all the graphs and statistics for it and it really works. The “drawbacks” is that during good times like from 2009 til today you will fall a little short of the index because of some “false” out indications, but who cares when your portfolio return in 2008 was 0% instead of -55%…….To give a little during good times costs so little in comparison to the return you get in the bad times. All is of course done from an account where you do not get taxed for selling and buying as long as you dont withdraw anything.
And real estate does more than just track inflation – it throws off income (which is important to some people and useful to most). And while your underlying asset is appreciating, the income also grows as rents increase over time. And if you make smart and well-timed purchases, both rents and asset values can increase at well above the rate of inflation.
I like the way you have listed the ways to earn extra income and was quite surprise that you did not make mention of network marketing, which is a way to make extra income without quitting your regular, though most people view mlm as a pyramid scheme but the real pyramid scheme is a regular 9 to 5, because you can only have one president of a company at any given time and network marketing business model to promote product that can be used is really cheap to join and can offer a substantial extra income or what do you think?
where “value” is defined as some benefit that people are willing to pay to receive. Seems really basic, right? But most people don’t seem to get this basic step. Any time anyone makes money in any way, value has been created and exchanged. In a way, we are all value-creating assets. It’s how we make money. Nothing wrong with that. The problem is how most of us create value.
While Im working on developing my husbands web presence: I cant seem to make a decision for my own business between becoming a social media consultant OR doing the niche website biz. Niche webstie biz is more appealing to me. It would be great if I could help to make that final decision. I love all the options you mentioned. All very good. Apps biz takes upfront cash flow for sure.
But then, I started receiving more and more opportunities to spread the word and my mission. I was invited to speak at several national medical conferences, but I turned them down to maintain my anonymity. I was invited to meet up with readers whenever I traveled to different towns, but I turned those down for the same reason. What’s flattered me the most is that I’ve even been asked to mentor some people, but again, I’ve declined to stay hidden.
5. Make sure you are properly diversified. Capital preservation is underrated. We saw a lost decade for tech stocks between 2000 and 2010 after the first dot-com bubble burst. It actually took 13 years for Nasdaq investors to get back to even. Investors in the Borsa Istanbul stock market index just gave up 10 years' worth of gains after they saw a plunge in their currency, partially due to increased tariffs by the US and a lack of confidence in the government. Your passive income needs to be properly diversified in order to take the hits.
Writing an e-book is very popular among bloggers, as many have noted that “it's just a bunch of blog posts put together!” You will not only have to make an investment of time and energy to create the e-book, but market it correctly. However, if marketed correctly (through blogging affiliates in your niche, for example), you could have residual sales that last a very long time.
The much loved model for bloggers and content creators everywhere and for a good reason…it’s pretty easy to write a 60-80 page ebook, not hard to sell say $500 worth a month through online networking, guest posting and your own SEO optimized blog, and well you get to keep a large whack of the pie after paying affiliates.  Hells yeah!  Continue reading >
That $200,000 a year might sound like a lot to you, but the median home price in San Francisco is roughly $1.6 million or almost eight times our annual passive income. For a family of three in 2018, the Department of Housing and Urban Development declared that income of $105,700 or below was "low income." Therefore, I consider us firmly in the middle class.
You would receive $9,500 and make 60 scheduled monthly payments of $204.64. Origination fees vary between 2.41%-5%. APRs through Prosper range from 6.95% (AA) to 35.99% (HR) for first-time borrowers, with the lowest rates for the most creditworthy borrowers. Eligibility for loans up to $40,000 depends on the information provided by the applicant in the application form.

1 Would you choose WordPress as an easy-start blogging/website content management system? The only thing I know about it is that it exists, I’ve been told by friends who have WP it’s easy to set-up and maintain and I’ve since read lots of info on the Net which reiterates this claim. I believe I read in a reply you wrote to another community member who commented on another post of yours you recommend WP. Is this correct, Chris? Or did I just make that up?


One of the most appealing options, particularly for millennials, would be #12 on your list (create a Blog/Youtube channel). The videos can be about anything that interests you, from your daily makeup routine (with affiliate links to the products you use), recipes (what you eat each day) or as you mention, instructional videos (again with affiliate links to the products you use). Once you gain a large following and viewership, you can earn via Adsense on YouTube.

Yes, good point about not blatantly copying other people’s hard work. I should have said in my original post that I would NEVER do that. I have eight years’ of University education behind me which resulted in three degrees, including a Masters. If I learned one thing at college, it is that plagiarism is, as you say, SO not cool. Not the done thing. I plan to give full attribution to the originating author and paste a link to their website on my website so my subscribers can follow up the data with the source if they choose to.
In Eric Reis’s The Lean Startup, a fantastic book about how today’s entrepreneurs and startup companies are approaching the way they create and innovate, Eric talks about how vital it is to use validated learning and scientific experimentation to be able to steer a company in the right direction. In other words, to use customer feedback and quantified data analysis (of real, non-vanity metrics) from a minimal viable product to make decisions and pivot a business one way or another. https://cdn5.vectorstock.com/i/1000x1000/46/29/passive-income-concept-cartoon-vector-6694629.jpg
There are three main categories of income: active income, passive income and portfolio income. Passive income has been a relatively loosely used term in recent years. Colloquially, it’s been used to define money being earned regularly with little or no effort on the part of the person receiving it. Popular types of passive income include real estate, peer-to-peer (P2P) lending and dividend stocks. Proponents of earning passive income tend to be boosters of a work-from-home and be-your-own-boss professional lifestyle. The type of earnings people usually associate with this are gains on stocks, interest, retirement pay, lottery winnings, online work and capital gains. 

Thank you for sharing your article! You did a great job saving and putting your money to work for you. Like you, I share the same financial dream of having 150-200k in passive income and traveling the world stress-free! :) Right now I’m saving about 80-90% of my active income and put it toward ETF funds and value growth stocks because I’m seeking capital appreciation. And I can tolerate a lot of risks because I’m still in my early 20’s. By the time I reach 30 something I’ll start looking into blue chips stocks that pay dividends and REIT. So I want to be where you are by that time lol. Anyways, that the plan and I’m sticking to it. Good luck on achieving your financial dream! https://thecollegeinvestor.com/wp-content/uploads/2018/08/TWFB_PASSIVE-1.jpg

But two months later, with the economy slowing down after the financial crisis, his firm began laying people off, and Flynn was informed that after his current projects were finished, he also would be out of a job. At the same time, he couldn’t help but notice that in the LEED exam forums he had frequented, people were referring to him as an expert and directing questions his way. He began to think he might capitalize on that.
became $1,000,000 during an 18 year period (about 3x better than Berkshire Hathaway). Five – ten shares, or more, invested in a ROTH Ira and held *consistently* come h..l or highwater, with dividends and splits reinvested, may provide you a very pleasant surprise in 20 years or so. Asset Managers often do better than the assets they manage. Eaton Vance (EV) and T. Rowe Price (TROW) also did exceedingly well over a 25 year period.
Even if each patron only contributes a very small amount each month, it can still be a huge source of income. Take a look at the Patreon page for Kinda Funny, an internet video company. They have over 6,209 patrons which means an average of just $3 a month would be a monthly income of almost $19,000 – plus they get cheerleaders that are always happy to spread the word on their brand.

I’ve been a lurker for these past few weeks and here comes an excellent post summarizing all the things I want to know about ways to generate passive income. I’ve had this idea in my mind (and somewhere in my notebooks) about a niche site but am torn between making it an excellent means of passive income and keeping it a professional space. Should I make two sites, one for the professional side and another for the passive income? I am also considering “personal branding” but I’m too young to be a consultant on the niche/subject matter (okay, it’s education).


I own several rental properties in the mid west and I live in CA. I have never even seen them in person. With good property management in place (not easy to find but possible) it is definitely possible to own cash flowing properties across the country. Not for everyone and not without it’s drawbacks, but it seems to be working for me so far. I’m happy to answer any questions about my experience with this type of investing.

It seems the idea of creating passive income streams online is in a boom, partly due to millennials who wish to retire at an earlier age than previous generations, says Jonha Richman, partner at JJ Richman, a global investment firm. The rise of online platforms like YouTube have made it easier than ever to try your hand at an online venture. Podcasts about passive income, such as "Smart Passive Income" or "The Side Hustle Show" have become immensely popular.


If an investor puts $500,000 into a candy store with the agreement that the owners would pay the investor a percentage of earnings, that would be considered passive income as long as the investor does not participate in the operation of the business in any meaningful way other than placing the investment. The IRS states, however, that if the investor did help manage the company with the owners, the investor's income could be seen as active since the investor provided "material participation." 
It is probably the biggest digital products marketplace online. Clickbank uses a very helpful measure called ‘gravity’ to represent how well a product sells, based on how many sales have been made and how recent these sales were. There’s one thing you want to be aware of though! ClickBank will withhold payment of any balance until an account shows a minimum of 5 sales using at least two types of payment methods. Not only that, if you made a sale but had no earnings for an extended period of time, your account will be subject to an ongoing penalty. This means that your affiliate earnings can potentially drop to zero. Nowadays, I rarely promote Clickbank products.

Secondly – and this is just quibbling – I’d change that risk score. The risk of private equity is incredibly high and should be considerably riskier than bonds! You are providing a typically very large amount of capital to one business that you agree to have no control over, and the success or failure of that business over a locked, predefined term determines your return. And in the few deals I’ve negotiated for clients, my experience has been that there are often management fees, performance fees, etc. that may cut into your potential gains, anyway. You’re putting a lot of eggs in one basket, and promising an omelet or two to the management no matter what. You really need to be confident that you found the next Uber before you take this giant risk!
Lending Club went public in 2014 and is now worth about $1.7B. They advertise P2P lending returns of over 7% for well-diversified portfolios of over 100 notes. I’ve personally been able to achieve a 7.4% annual return over the past two years in a completely passive way by investing in A and AA notes. Others have achieved a 10% annual return through relatively minimum effort.

Tenants usually move out before the court date but you may have to pay for a removal by the sheriff. All these fees and time delays add up and you can see why it is important to check tenant applicants in the first place. Having a formal eviction procedure will help avoid procrastinating the process and missing out on several months’ worth of rent trying to get tenants evicted.
That $200,000 a year might sound like a lot to you, but the median home price in San Francisco is roughly $1.6 million or almost eight times our annual passive income. For a family of three in 2018, the Department of Housing and Urban Development declared that income of $105,700 or below was "low income." Therefore, I consider us firmly in the middle class. http://wolfe-investments.com/wp-content/uploads/2017/10/Blog-Passive-Income-Through-Real-Estate-848x450.jpg
Everything passive first takes active energy. The time to put in the effort is when we are young and not ravaged by disease or burdened by family obligations. I remember being able to snowboard from 9am until 4pm every day for a year. Now, I’m lucky to last from 11am until 2pm without wanting to go to the hot tub and drink a bucket full of beer! If we can appreciate how lucky we are when we are young, we’ll be able to maximize our vitality and live financially freer when we are older.
Awesome article…if this does not give somebody a clear roadmap, they probably were never going to get there in the first place! I’m kind of like you trying to figure out where to place “new” money and maturing CD’s in this low interest environment. Rates have to go up eventually…I dream of the days again where you can build a laddered bond portfolio paying 8%. I plan for a 5.5% blended rate of return, with big downside protection.
So many readers have asked me “How do you invest your money?”.  And so I’ve shared my thoughts on building a smartly diversified portfolio for long term returns.  Of course, this is great when you have a large capital base and 30-40 year time horizon.  For example if you are compounding at just 5-10% but doing it over 40 years and from a large starting base, plus you are topping it up monthly with new funds, you can enjoy ridiculous returns.
Another benefit, which many online entrepreneurs do not even consider, is that you don’t need to create the whole product before launching it. You only need to create a small portion of your actual content, and complete it only after you get your first member during his membership - that means you get paid IN ADVANCE of actually creating your site content. It also means that you can modify your content based on LIVE feedback from paying customers. More importantly, this is a great way to VALIDATE your site and ensure you create a product based on what customers want, not just what you think they want.
I have two major dilemmas: (1) Should I wait to start investing (at least until the end of the year where I’ll hopefully have $5k+ in savings) in things like CDs? I ask because a little over $2k doesn’t seem significant enough yet to start putting my money to work (or maybe it is? that’s why I’m coming to you for your advice haha) and (2) I want to invest in things like P2P and stocks but I’m honestly a bit ignorant of how it trully works. I know the basics (high risk, returns can be volatile, returns are taxable). Do you have any advice on how I can best educate myself to start putting my savings to work?
I just wanted to say how nice it is to see such a positive exchange between strangers on the Internet. Seriously, not only was this article (list) motivating and well-drafted, the tiny little community of readers truly were a pleasant crescendo I found to be the cause of an inward smile. Thank you, everyone, and good luck to you all with your passive income efforts!! 🙂
I’m a disabled Veteran, although looking at me you couldn’t tell, who is a stay at home husband. I help other veterans with their applications for benefits to the VA when I can but some of these vets and myself struggle at times with maintaining steady employment. I would be especially grateful if I could trade emails to coresond with you in hopes to learn a bit more about passive income. I would like to utilize this for myself and be able to mentor other vets on this process. I do understand this is NOT a get rich quick thing, but a slow and steady build up. Thank you for your time.
I think also a very good way to earn a nice passive income is investing in Cryptocurrency, especially in Masternode Cryptocurrencies, which provide a passive income in coins, also those carefully picked coins grow in value, so it’s a double gain! And a great coin to invest in at the moment is GINCOIN, which is the fuel for a really succesful project. Find more at GINCOIN Website: https://gincoin.io/ 😉
Nearly every “9 to 5” worker (nothing against them) is a service worker. The definition of a service is a commodity where the value is created and consumed at the same time — think massages, for example. They create value — inputting purchase orders, serving customers, managing employees, etc — for a company or employer. The employer then consumes these services simultaneously.
Blogging is still going to take work starting out. That path to $5,000 a month didn’t happen overnight but just like real estate development, it build up an asset that now creates constant cash flow whether I work or not. I get over 30,000 visitors a month from Google search rankings, rankings that will continue to send traffic even if I take a little time off.

Investing is arguably the easiest way to make passive income.  The problem is most investments sound good in theory but don’t work out so well in practice.  And if you don’t have much experience or access to capital, let alone the time to work it all out, it can seem more or less impossible.  However, there is one smart way to invest that just might work.  Continue reading >

When I purchase an existing online business, I look for cash flow over the past year and where the money comes from. I want the sources to be more passive so that it does not take a lot of my time. Also, typically I will make an offer that is 18 – 24 months of profit so that I know that I will get my money back within the next two years. I hope that helps! https://dtqnv8in03d1n.cloudfront.net/wp-content/uploads/2017/03/understanding-what-passive-income-is.jpg
I’ve been a lurker for these past few weeks and here comes an excellent post summarizing all the things I want to know about ways to generate passive income. I’ve had this idea in my mind (and somewhere in my notebooks) about a niche site but am torn between making it an excellent means of passive income and keeping it a professional space. Should I make two sites, one for the professional side and another for the passive income? I am also considering “personal branding” but I’m too young to be a consultant on the niche/subject matter (okay, it’s education).

One of the most important assets you have is your credit score. By taking care of it and pursuing the steps to improve your credit score, a world of opportunity can open up for you. If you need a loan to buy that rental property or some quick funding through a business credit card, a good credit score will help you get approved so you can build passive income.
First: I understand why you would say that such investments are restricted to only accredited investors, because generally, that’s true. There are means, under federal securities regulations and Blue Sky laws in each state, to sell interests to non-accredited investors – but usually those means are so heavily regulated and involve disclosures so similar to cumbersome registration requirements that it is not worth it for the seller to offer to non-accredited investors.
​Network marketing, or multi-level marketing, seems to be on the rise. Companies such as Young Living Oils, Avon, Pampered Chef, and AdvoCare are all multi-level marketing companies. You can earn passive income through network marketing by building a team underneath you (often referred to as a down line.) Once you have a large team you can earn commissions off of their sales without having to do much.
A perfect example of the Active Problem Solving + Automation concept is in my online courses I’ve created over the years, or my free webinars I’ve created more recently Each of my online courses and webinars are targeted to help people with specific problems, whether that’s in the area of affiliate marketing, podcasting, building a brand, and so forth. I am always improving upon the courses, but they are also evergreen for my audience.
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