What is passive income?
Passive income is income earned on a regular basis with little or no effort. there is many ways to earn passive income. Today we will be covering a multitude of ways a passive income can be achieved, even if we wanted to covering them all in this post it would over 100,000 words. So we will be covering most of the mainstream ways one can earn passive income, lets get started
Can you truly make money while doing nothing?
Yes, but it going to take some elbow grease to get it set up. None of these methods are free of a little labor unless you won the lottery or something, even though they take a little hard work to get running and maintain they are nothing compared to that of a real job
What are some ways to earn a passive income?
Affiliate marketing is where someone pays you in exchange to promote there product or site, ect. Simple right? well it sure sounds that way… but it couldn’t be farther from the truth. Targeting the right audience and hoping they view or buy the product your promoting can be frustrating when your getting close to 0 hits. We primarily recommend this to those who have a large social media following due to there access to a broad audience. There are many ways to go about this and one of those is finding sites that have referral programs like we have listed here. Affiliate marketing
Dividends are the distribution of reward from a portion of the company’s earnings and is paid to a class of its shareholders. Dividends are generally managed by the board of directors. Overall if you’re interested in passive income this should be one of your top picks, dividends are great for anyone interested in the stock market or passive income due to the fact that most dividend stocks are very very low risk. If you want the least risk go with mutual funds even though the rewards are low the risk is too.
Some dividend stocks we would recommend are
BAC. Bank of america
VOO. Vanguard SP 500 ETF
VEA. vanguard emerging markets ETF
Two of these are ETF’s but were still putting them on the list because of two factors. (1.) There low risk. (2.) They all pay great dividends. Compare these 3 stocks to the Franklin mutual funds, your rolling in the dough compared to that. Me personally i have a very diversified dividend portfolio. I currently reinvest all my dividends trying build up my monthly revenue from my portfolio, some people call this a DRIP(dividend reinvestment plan) and generally they are very successful in poor markets because they don’t rely on capital gains
Advertisement, is a great way to start earning passive income, especially if you already have a successful blog or YouTube channel. Google Adsense is great way to go about this, there easy to set up and have a great user interface for beginners. They don’t pay great per se but you could make a living with it if you brought in enough traffic to your site or channel. They pay for clicks and impressions primarily, your probably wondering what those 2 things are. Clicks are when someone engages with a ad on your site by clicking on it, a impression on the other hand is when a viewer has more then 50% of a ad visible on his screen for more then 1 second
Which option is right for me?
Well, we cant answer that for you. Try hand a t a little bit of everything and see what sticks, what ever you decide on make sure its something your passionate about and be sure to do research before diving in
I hope you enjoy this post and we look forward to seeing you again soon. Best regards, Charles
Do they carry any risk?
They all carry risk but the lower the risk generally the lower the reward. Mutual funds are probably the lowest risk investment out there, but the large sum of income that it would take to build a passive income you could live on would absurd
Do you have to pay taxes on passive income?
Yes, just like any income you have to pay taxes on it. For dividend stocks you have to file a 1099div for taxes, everything on this list you have to pay tax on. Only two things that are facts in life, death and taxes