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At first you may only be making a small amount of money passively, and you might even want to re-invest that money so that it compounds and grows faster. However, with some time, its possible to create enough passive income you could quit your job or retire early.

Passive income can be a bit of a divisive topic. In general, passive income is any money that you earn without putting in much effort. The money will flow in without too much being demanded of you. In some cases it might be long-term recurring income, and in some other instances it might be short lived or inconsistent.

In some cases youll need to put in some effort up front, but then it wont need as much effort in the long run when youre making the money.

Exactly what qualifies as passive income is up for debate. Most lists that youll find online will include things like blogging, writing e-books, or creating your own course. Im not including those ideas in this informative article because, in my own opinion, they all require too much 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, plus youll need a consistent traffic supply in order to continue to create sales. It is possible and there are individuals who've been in a position to do it passively, but they make up a small percentage of individuals who really set out to get it done.

Ive been blogging full-time for ten decades and Ive sold ebooks and classes in the past. Theyre great ways to make money, I just dont consider them to be passive, in most cases. .

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Just about any business can be a source of passive income if youre paying other people to run the business. This is true with both online read here and traditional businesses. This opens up even more chances than what will be recorded here.

Now lets take a peek at some of the greatest ways to make passive income. Some of these are investments Bonuses which will need some money to begin with. Others wont require any money see to get started. If you dont have the money to invest now, consider starting with the approaches that dont need any money, and then utilize that money that you earn to invest. .

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Your very first financial priority should be to develop an emergency fund that will cover all your living expenses for a couple months. But dont put this money would be a checking or savings account at a local bank which pays you a terrible interest rate. You can open a high yield savings account or money market account with an online bank that will earn a much greater 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 quick and easy, and can be done online. .

Some companies consistently pay dividends for their shareholders. As a trader, you can re-invest the dividends to purchase more shares of this stock, or take the dividends in cash. Reinvesting will let you own more stocks, which leads to more dividends in the future (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 great investment whether or not you want to reinvest each the dividends on hold on to this stock for a long time, or make use of the income generated through the dividends.

For far more detail on the subject read Investing in Dividend Stocks in Investopedia. For a list of those stocks, visit this collection from 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. Borrowers and lenders can be matched up via a site or market. Instead of going to a bank, the borrower receives a loan by an investor.

In some cases the borrower may not have the ability to qualify for a loan via a traditional bank. And in many cases the debtor gets a better interest rate than they could get from a bank. As an investor, you can earn a great return too.