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Passive Income
What is passive income?
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[QUOTE="samina, post: 327383, member: 104764"] Passive income is money earned with little to no direct involvement or effort on the part of the recipient. It's income that is generated from investments, assets, or activities that require minimal ongoing work or maintenance after the initial setup. Passive income can come from various sources, including: Rental Properties: Income generated from owning and renting out real estate, such as residential or commercial properties. Dividend Stocks: Earnings from owning shares of dividend-paying stocks. Companies distribute a portion of their profits to shareholders in the form of dividends. Interest Income: Earnings from savings accounts, certificates of deposit (CDs), or bonds where you receive interest payments. Royalties: Money earned by authors, artists, or creators for the use of their intellectual property, like books, music, or patents. Business Ownership: Earnings from owning a business in which you are not actively involved in day-to-day operations. This might involve having a silent partnership or owning shares in a company. Peer-to-Peer Lending: Income generated from lending money to individuals or small businesses through online lending platforms. Affiliate Marketing: Earnings from promoting and selling products or services through affiliate programs, where you receive a commission for each sale or lead you generate. Blogging or Content Creation: Passive income can come from ad revenue, affiliate marketing, or selling digital products on a blog or YouTube channel if you have built a substantial audience. Automated Online Businesses: Some online businesses, such as dropshipping or print-on-demand stores, can be automated to a significant extent, allowing for passive income. Licensing or Franchising: Earnings from allowing others to use your brand, products, or services under a licensing or franchise agreement. Real Estate Investment Trusts (REITs): Investing in REITs allows you to earn income from real estate investments without directly owning or managing properties. Passive income can provide financial security and the potential for financial independence because it allows individuals to earn money even when they are not actively working. However, building and maintaining passive income streams often requires significant upfront effort, capital, or expertise. It's important to research and plan carefully to create and manage passive income sources effectively. [/QUOTE]
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