Reinvest your passive income. Once you've started earning a good amount of passive income, you can reinvest that income to earn ever more. This income will then produce further income that you can also reinvest. This cycle produces ever-increasing income streams without any direct cost to you. For example, you could reinvest revenue from website advertising into more advertising that brings readers to your site. This increase in traffic would then further increase your ad revenue.[12]
P2P lending started in San Francisco with Lending Club in mid-2000. The idea of peer-to-peer lending is to disintermediate banks and help denied borrowers get loans at potentially lower rates compared to the rates of larger financial institutions. What was once a very nascent industry has now grown into a multi-billion dollar business with full regulation.
P2P lending is the practice of loaning money to borrowers who typically don’t qualify for traditional loans. As the lender you have the ability to choose the borrowers and are able to spread your investment amount out to mitigate your risk. The most popular peer to peer lending platform is Lending Club. You can read our full lending club review here: Lending Club Review.
Book sales ($36,000 a year): Sales of How to Engineer Your Layoff" continue to be steady. I expect book sales to rise once the economy starts to soften and people get more nervous about their jobs. It's always best to be ahead of the curve when it comes to a layoff by negotiating first. Further, if you are planning to quit your job, then there is no downside in trying to engineer your layoff so you can get WARN Act pay for several months, a severance check, deferred compensation, and healthcare.

Good ranking FS, I’d have to agree with the rankings. And it looks like your portfolio covers five of the six! Some people consider real estate passive will others classify it as active. But every scenario is different, whether you are doing all the maintenance and managing yourself, or you are contracting out a lot of the work. Obviously it takes a lot more time and effort than purchasing a 36 month CD and “setting it and forgetting it.”
Passive income is a great tool for building retirement income faster, paying off debts, and, ultimately, retiring early and comfortably. If you have passive income during your retirement years, you potentially could live as well as you did during your peak earning years. Passive income is money you earn without doing actual labor. Often times, it comes from investments, such as in rental properties, stocks, bonds, annuities, and other investments.
Seeing the residential real estate boom coming, I started buying single-family rentals in 2002. I learned a lot about real estate investing and passive income properties over the next five years. As someone that has flipped houses as well as managed a group of rental properties, the best advice I can offer is to know yourself and how much time you are willing to spend on the business.

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/ 😉


I also have my issues like everyone else does. For one, no one could ever accuse me or my wife of being frugal. However, when we do spend, we’ve become better at spending with intention, making sure it adds value to our lives in meaningful ways. This is why we’re happy to live where we live (in a high cost of living area), we like to take nice trips, and enjoy eating good food. We definitely live more, but we also focus on giving much more than we used to. All of this has been made possible by our multiple streams of income.
Leverage: With the stock market, you invest your retirement savings or cash on hand. The same is true for private lending. You can leverage rental properties four-to-one, sometimes five-to-one, meaning your $50,000 investment can buy you $200,000-250,000 in real estate. In a rising market, this is a good thing and will maximize your cash on cash return.
I watched an episode of Shark Tank once where I was introduced to Major Robert Dyer. Major Dyer was pitching a new energy drink called The Ruck Pack Energy Drink. It’s not like the world needs another energy drink, but he was able to convince both Kevin O’Leary and Robert Herjevic, two of the investors on the show, to give him $150k in exchange for 20 percent of the company.
Who doesn’t like some down and dirty affiliate fees?!  Especially if you realize it can be even easier to make money this way than with an ebook.  After all, you simply need to concentrate on pumping out some content for your own site and getting the traffic in, often via Google or social media.  Unsurprisingly, most people can enjoy their first affiliate sale within 30 days of starting a blog.  Continue reading >
Most people who set up passive income don’t do it so they can lay on a beach all day, or even so they can spend their time learning a third or fourth language (ok, maybe I’m doing that), or living on private islands. No, the point of passive income is to liberate your time for more fruitful endeavors — whatever those may be. If you have the ambition and gall to get out of the “9 to 5 game” and set up passive income, chances are you won’t be happy with sitting on your butt or traveling year round. You’ll want to do something with meaning and purpose.

Starting a blog is one of the most popular side hustles to earn online income. This is because whether you have 10 people or 10 million reading your content, the amount of your effort to write an article is the same. Websites have low start-up costs and you can literally buy your domain, launch your site and have a few pages created in less than an hour. You won’t start making money right away, but you will be building towards that first $1 of income.
I’m looking at accepting a professor job. It’ll be more than a 50% pay cut. But I’ll have the same life you describe – endless summers and an entire month every winter to ski. I’m thinking in the end, eventually, I might even end up wealthier in more ways than one. Happy people tend to be the most successful. I have no desire to diversify. Dividend stocks allude me. CDs seem like a good choice for older people, but I have time on my hands and real estate knowledge, so I’m sticking with what I know, despite the fact that most people will tell me it is foolish and I should diversify.

Teachable and Udemy are two of many, but these are the most prevalent, and they’re both intuitive and user-friendly. With Teachable, you have more control over your pricing and the look and feel of your course, but you don’t get a built-in audience. Instead you have to do all the marketing yourself. Udemy has a built-in base of students, but you don’t have as much control and they take more of your revenue.
Question: You mention receiving $200k of passive income a year, but your chart shows half of that coming from real estate holdings, and reading between the lines it appears that you hold mortgages against those holdings. Then you conclude that $200k/yr of passive income should be enough to live comfortably anywhere in the world. So are you subtracting your real estate expenses (taxes, insurance, mortgage payments, maintenance, remote property management company fees, etc.) when you report your passive income from those properties? Really I think it’s the net (after taxes and everything) that tells us what is left over to “spend” on living, right? When I set up my spreadsheet to retire early at age 47, I calculated the after-tax income I would need to live. Then I compared that to my income streams (estimating tax on the taxable income streams) to measure the surplus/shortfall. Also some good advice from GoCurryCracker: If you can minimize your taxes so you’re in the 15% tax bracket, you can possibly receive tax-free long term capital gains. I agree with your philosophy that time is more important than money as we age. I am not sure I agree with a philosophy that is fixated on needing such a large income, and would rather minimize taxes if it’s all the same on the happiness meter. Furthermore, having 20 plus income sources in the name of diversification adds stress and requires more management (TIME!). I think this is fine for those of us while young, as we have the energy to work hard. But as time becomes more important, the extra headache of managing, planning, and buying/selling our assets becomes a resented hindrance on par with the resentment we felt when working for an employer and fighting traffic each day to go to a job we hated. Every thing we own in actuality owns us, by virtue of its demands on our time and affections, and that includes investments. It also includes our home, and is a good reason for downsizing. As long as we have food on our table, a roof over our heads, and clothes on our bodies, what more do we need? I think we need to consider freeing ourselves from the weight of the chains of managing too many ventures. Personally, I plan on investing in no more than 5 simultaneous ventures ever, with the exception of some IRAs that I just plan to let sit for the next 20 years (and therefore no thought or anxiety required).
As an struggling young Engineer (back in the Carter era) I bought anything I could renovate then rent to justify paying the 18% interest. I never took vacations but worked on my properties all in the pursuit of passive income. I drove junk for many years & many months I just got by on credit cards. My friends & colleagues were amused by my ‘stupidity’ but most are still working to make enough for retirement.
This is the best post I’ve seen on passive income streams. I’m similar to you in that I worked in IBanking for a few years but wanted out. My approach is a little different, instead of starting with the CD’s, I’m trying to build up my net worth with riskier asset classes such as stocks and real estate to get the benefit of compounding. Then, as I approach my retirement year goal, I’ll start moving them into CD and bond ladders. In theory at least, it’s best to have the highest net worth just before retirement, then convert them to risk free passive income. You’re method is more patient and probably more practical than mine. I guess I’m willing to take more risks.
Passive income is defined as income-generating activity that is independent or loosely dependent on time commitment. Just so we’re on the same page, here, there’s no such thing as making money without creating value (I wish), and creating value takes time and effort. So, you are technically transacting time for money, in a way. But passive income is where we separate or at least alienate the proportional relationship between time spent and money made. It’s where there is no longer a fixed ratio, and if there is, it’s not a 1:1 ratio, but more like a 10 or 20:1 ratio of man-hours-worth-of-time to actual time. As another side note, knowing how much your time is worth both to you and on the open market is a valuable piece of information for guaging how effective your passive income activities need to be.
I live in NYC where I never thought buying rental property would be possible, but am looking into buying rental property in the Midwest where it cash flows and have someone manage it for me (turnkey real estate investing I guess some would call it). I agree with what Mike said about leverage and tax advantages, but I’m still a newbie to real estate investing so I can’t so how it will go. I have a very small amount in P2P…I’m at around 6.3% It’s okay but I don’t know how liquid it is and it still is relatively new…I’d prefer investing in the stock market.
Whether you choose to invest in just one of these modern REITs or both, keep in mind that since they’re private funds and not stocks, you won’t be able to easily liquidate your investment and access your cash right away. Depending on your investment, plan to see your money tied up for anywhere from six months to five years. However, you’ll most likely still receive monthly or quarterly payments, depending on which investment opportunity you select.
Focus on your primary passive income stream first. It's difficult to grow your passive income into multiple streams if you don't already have one, solid stream. Focus all of your efforts on that one project first and help it grow as productive as possible. Then, you can take the money you've made and lessons you've learned from this passive income stream and put them into others.
If your research really does determine that there is some amazing market niche that until now has miraculously gone unnoticed and unserved---dog owners who wish to help their dogs lose weight naturally, for example---sooner or later, word is going to get out that there's money to be made there, and someone is going to create a better ebook or info course or product that serves that market's needs better than yours does, and who markets it better to them than you do. You can't manage this competition while sipping margaritas all day from your paradise restaurant on Fiji. You'll soon see your market share go down the drain---just like all those Açai cleanses. . .
Your best deals, but the most work, will come from properties not formerly listed as for sale. Contacting the owners of abandoned or run-down properties might uncover a deal without the hassle of competition from other investors. Once you have the address of a property, find your county assessor’s page on the internet for ownership information. The assessor’s page will have other useful information like previous sales and house characteristics.
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 >
I decided to develop some passive income streams late in 2009 and started with writing an ebook… It took me 10 days to setup, writing the book, creating the pdf, wrote the sales page, created the website, registration on Clickbank, etc. It sold so well, on complete autopilot, that I used the ebook content to create a membership site and over 1,100 people have been through the membership site.
4. Calculate how much passive income you need. It's important to have a passive-income goal — otherwise, it's very easy to lose motivation. A good goal is to try to generate enough passive income to cover basic living expenses such as food, shelter, transportation, and clothing. If your annual expense number is $30,000, divide that figure by your expected rate of return to see how much capital you need to save. Unfortunately, you've got to then multiply the capital amount by 1.25 to 1.5 to account for taxes.
What if there was a way for you to effectively make money while you sleep? Sounds like a dream come true, right? Even for the biggest workaholics, there are only so many hours in a day. If only you could get paid multiple times for something you did once—that’s exactly how passive income works! Thanks to technology, the potential to create multiple income streams is even easier than ever before. We’re no longer held back by the limitations of a traditional 9-to-5 job, and financial freedom is at our fingertips. Even if you already work a full-time job you can still improve your financial health with passive income.
Real Estate: I currently own one rental property in San Francisco which I bought in 2003 (2/2 condo), one vacation rental in Squaw Valley, Lake Tahoe (2/2 condo), and my primary residence. Real estate is my favorite asset class to build wealth because it is easy to understand, tangible, provides utility, and rides the way of inflation. I recommend individuals try and get neutral inflation by buying their primary residence as young as possible. The power of inflation is just too hard to counteract.

Do you know of a successful business that needs capital for expansion? If so, you can become something of a small-time angel investor and provide that needed capital. But rather than offering a loan to a business owner, you instead take an equity position in the business. In this way, the business owner will handle the day-to-day operations, while you will act as a silent partner who also participates in the profits of the business.


Focus on your primary passive income stream first. It's difficult to grow your passive income into multiple streams if you don't already have one, solid stream. Focus all of your efforts on that one project first and help it grow as productive as possible. Then, you can take the money you've made and lessons you've learned from this passive income stream and put them into others.
A Risk Score of 10 means no risk. A Return Score of 1 means the returns are horrible compared to the risk-free rate. A Feasibility score of 10 means everybody can do it. A Liquidity Score of 1 means it’s very difficult to withdraw your money without a massive penalty. An Activity Score of 10 means you can kick back and do nothing to earn income. To make the ranking as realistic as possible, every score is relative to each other. Furthermore, the return criteria is based off trying to generate $10,000 a year in passive income.
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.
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