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Initially you may only be making a tiny amount of money passively, and you may even want to re-invest that money so it compounds and grows quicker. However, with a few time, its potential to make enough passive income that you could quit your job or retire .

Passive income can be a bit of a divisive topic. In general, passive income is any money that you make without putting in much work. The money will flow in without too much being demanded of you. In some scenarios it might be long-term recurring income, and in 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 as much effort in the future when youre making the money.

What qualifies as passive income is up for discussion. Most lists that youll find online will include things such as blogging, writing e-books, or creating your own course. Im not including those thoughts in this informative article because, in my 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 others which youre paying.  Selling ebooks or courses will need on-going customer support, and youll need a consistent traffic supply in order to continue to create sales. It is possible and there are individuals who've been able to do it , but they compose a small percentage of people who really set out to do it.

Ive been blogging full-time for 10 years and Ive sold ebooks and courses in the past. Theyre great ways to make money, I simply dont consider these to be 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. That opens up even more chances than that which will be listed here.

Now lets take a peek at some of the greatest ways to make passive income. A number of these are investments which 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, consider starting with the approaches that dont need any money, and then use that money you make to invest. .

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Your first financial priority should be to develop an emergency fund that will cover all of your living expenses for a few months. But dont put this money is you could try these out a checking account or savings account at a local bank that pays you a horrible interest rate. You can open a high yield savings account or money market account with an online bank that 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 1.85% APY and CIT savings accounts are earning 1.55% APY. Thats 22x the national average! Opening an account with CIT is fast and simple, and can be done online. .

Some companies consistently pay dividends to their shareholders. As a shareholder, you can re-invest the dividends to purchase more shares of this stock, or take the dividends in cash. Reinvesting will allow you to own more stocks, which contributes to greater dividends in the future look here (ideally).

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The companies that consistently pay dividends tend to be large companies with a long track record 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 or not you want to reinvest each the dividends on hold on to this stock for quite a long time, or make use of the income generated throughout the dividends.

For far more detail on the topic read Investing in Dividend Stocks in Investopedia. To get a list of these shares, see this collection out of Dividend.com and this collection from DividendValueBuilder.com.

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Peer-to-peer lending (or P2P) is becoming extremely popular in recent decades. Creditors and lenders can be matched up through a site or market. Instead of going to a bank, the debtor gets a loan from an investor.

In some situations the borrower may not be able to qualify for a loan via a traditional bank. And in many circumstances the borrower gets a better interest rate continue reading this than they might get from a bank. As an investor, you can earn a good return too.