I don't think that passive income through rental properties, ivestment incomes and original content are nearly impossible. Everything IS possible! That's the first thought that should be on everybody's mind. Of course, you have to do some initial work to set it up to work and generate passive income. If you do it smartly, you don't have to put anymore sweat into it and enjoy it.
Dividend Growth Investor
· 1 year ago
Nicely put Brip Blap! I agree with Bubelah that Rental properties could be a passive income if you buy a REIT or hire a property manager to do the work.
Richard
· 1 year ago
Kiyosaki changed the way I think too but this type of idea is often taken way too far by people who have no experience (or want to sell something to those who have no experience). He makes a lot of things sound easy - and they probably are if you have years of experience in that area. If not you'll have to make a lot of mistakes first but that's the only way to get experience. Even though you have to do a lot more work than advertised and take risks somewhere, most of the things he mentions aren't too bad if you're interested in them.
The only thing I consider real passive income is investing - not trading - in something entirely controlled by other people (stocks and bonds). But there's different degrees of "earning" money.
For example, after earning money the hard way for a couple of years (and missing out on about a 1-1.5 years of entry-level salary) I'm now starting to make profits. I still have to do ongoing work to get the profit, but I'm being paid for my time and someone else's time. I'm not flipping commercial properties and buying luxury cars for "business" purposes yet but I know this is a step closer. Now that I've started down this path I can gradually offload more work while increasing my earnings and only focus on the parts that really need my attention.
A lot of people think they're above any income that's tied to ongoing work but if your "hourly rate" is doubling or better every year you really can live with it. And you can invest the profits for real passive income. Kiyosaki definitely skips over the hard but essential parts where most people give up but if you start thinking this way and you really want a different type of income you can get there, step by step.
deepali
· 1 year ago
is it embarrassing to admit that i actually employ some of the strategies in the top 5? but in my defense, it's not really for income-making... :)
but you didn't include real estate...? there is work upfront, but over the long-term, it could potentially be passive-income-generating...
bubelah
· 1 year ago
Good for you. Please don't apologize. It's not embarassing at all.
FFB
· 1 year ago
Passive income still requires work. Usually a lot in the beginning or at least a good amount of money. I guess a lot of us want the passive part of it to mean little or no work.
I consider interest on my high yield savings to be passive.
Scott @ The Passive Dad
· 1 year ago
Passive income can take a small or large investment up front, but should require very little effort going forward. I also think reits or oil rich dividend paying stocks can be a wonderful source of passive income. Prosper can be a good start to passive income with a small investment. Also, Squidoo, and BigCrumbs are others that require nothing but a little marketing to friends and family and you're off to the races. So many ways to earn passive income, it's hard to sit still:)
Writers Coin
· 1 year ago
Passive income is checking my adsense account on Sunday night after not doing any blogging over the weekend and seeing that I made $1.04 on Saturday and Sunday.
It's pennies, but it's passive!
theCase
· 1 year ago
I disagree with the idea of a duplex NOT being passive income.
I bought one about 20 years ago, and yes, the first few years were tough, but I never did NOT make money on it.
Now it is paid off. I pay a management service 6% plus costs to handle the upkeep, receive rent, and screen tenants. My only interaction with it is to open an envelope containing a statement of activity and a check for about $1250 about once a month. This is about as passive as it gets.
Plamen
· 1 year ago
For me you have passive income when you are not paid by hour for the actual money coming in. It requires some work in the beginning (writing a book) and/or smart decision (buying the right stock or rental house). There are different levels of passive income of course from doing nothing (for getting your dividends) to spent few hours a month to upkeep your rental property ...
Lindsay
· 1 year ago
Rich Dad, Poor Dad is making its author a buttload of passive income. ;)
I make a living from my blogs and websites working about an hour a day. It's not entirely passive income (though I do have sites I haven't touched in a year or more and that still bring in money every month), but it's as close to my dream job as I've gotten.
That's what passive income is for most people. There are ways to build assets, whether through writing content (books, websites, etc.) or buying real estate, but it's hard for anything to be entirely hands off. And who would want it to be? Being retired would be boring in the extreme. ;)
shtinkykat
· 1 year ago
Saw your article in the Carnival. I've also created a link to this article on my post. :-D
Funny about Money
· 1 year ago
LOL! I was afraid of this. These are all too much work for me! :-D
Andy
· 1 year ago
Passive income is my key to financial freedom and I think it can be achieved. This year for example my goal is $300 p/month. Well on the way to achieving that. Blog income is part of that, but it takes active work to generate that stream of passive income.
tulalue
· 1 year ago
I have been a landlord for 26 years and rental types of investments always require work. However, with mortgages paid off, rewards are now being paid. It takes time, patience and hard work, nothing in life comes easy!
Nathalie Lussier
· 1 year ago
Very cute list. I believe passive income is possible, but sometimes you need to think outside the box. The truth behind passive income is that you need to put in some upfront work to actually get it going. Think of creating a product and selling it: you need to create the product, then create a system to sell it. After that, money should continue to flow in "passively".
deb livingston
· 1 year ago
This is great information. One site I've found to generate income online is at http://www.flixya.com. It's a great site for sharing videos, photos and blogs and making friends! Check it out? :P
All Comments
I agree with Bubelah that Rental properties could be a passive income if you buy a REIT or hire a property manager to do the work.
The only thing I consider real passive income is investing - not trading - in something entirely controlled by other people (stocks and bonds). But there's different degrees of "earning" money.
For example, after earning money the hard way for a couple of years (and missing out on about a 1-1.5 years of entry-level salary) I'm now starting to make profits. I still have to do ongoing work to get the profit, but I'm being paid for my time and someone else's time. I'm not flipping commercial properties and buying luxury cars for "business" purposes yet but I know this is a step closer. Now that I've started down this path I can gradually offload more work while increasing my earnings and only focus on the parts that really need my attention.
A lot of people think they're above any income that's tied to ongoing work but if your "hourly rate" is doubling or better every year you really can live with it. And you can invest the profits for real passive income. Kiyosaki definitely skips over the hard but essential parts where most people give up but if you start thinking this way and you really want a different type of income you can get there, step by step.
but you didn't include real estate...? there is work upfront, but over the long-term, it could potentially be passive-income-generating...
I consider interest on my high yield savings to be passive.
It's pennies, but it's passive!
I bought one about 20 years ago, and yes, the first few years were tough, but I never did NOT make money on it.
Now it is paid off. I pay a management service 6% plus costs to handle the upkeep, receive rent, and screen tenants. My only interaction with it is to open an envelope containing a statement of activity and a check for about $1250 about once a month. This is about as passive as it gets.
There are different levels of passive income of course from doing nothing (for getting your dividends) to spent few hours a month to upkeep your rental property ...
I make a living from my blogs and websites working about an hour a day. It's not entirely passive income (though I do have sites I haven't touched in a year or more and that still bring in money every month), but it's as close to my dream job as I've gotten.
That's what passive income is for most people. There are ways to build assets, whether through writing content (books, websites, etc.) or buying real estate, but it's hard for anything to be entirely hands off. And who would want it to be? Being retired would be boring in the extreme. ;)