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At first 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. But with a few time, its possible to create enough passive income you could quit your job or retire early.

Passive income can be a small divisive topic. In general, passive income is any money you make without putting in much work. The money will flow in without too much being required of you. In some scenarios it might be long-term recurring income, and in some other instances it could be short lived or inconsistent.

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

Exactly what qualifies as passive income is up for debate. Most lists which youll find online will include things such as blogging, writing e-books, or creating your own course. Im not including those thoughts in this post because, in my own opinion, all of them require too much effort to be considered as passive.

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Blogging will constantly require on-going work, either by yourself or by others which youre paying.  Selling ebooks or classes will need on-going customer service, plus youll need a consistent traffic source in order to continue to make sales. It is possible and there are people who have been in a position to do it passively, but they compose a small percentage of people who really set out to do it.

Ive been blogging full-time for ten years and Ive sold ebooks and courses in the past. Theyre great ways to earn money, I just dont consider these to be passive, in the majority of cases. .

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Nearly any business can be a source of passive income when youre paying others to run the business. This is true with both online and traditional businesses. This opens up even more chances than what will be recorded here.

Now lets take a peek at a few of the greatest ways to make passive income. A number of these are investments which will need some money to begin with. Others wont moved here need any money to begin. In case you dont have the money to invest now, consider starting with the methods that dont require any money, and then utilize that money that you earn 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 couple months. But dont put this money is a checking account navigate to this site or savings account at a local bank which pays you a horrible interest rate. You can open a high yield savings account or money market check it out account with an online bank which will earn a lot greater return for you.

My wife and I maintain our emergency fund in a money market account with CIT Bank. At the moment (October 2018) CIT money market accounts are earning 1.85percent APY and CIT savings accounts are earning 1.55% APY. Thats 22x the national average! Opening an account with CIT is quick and simple, and can be done online. .

Some companies consistently pay dividends to their shareholders. As a trader, you can re-invest the dividends to buy more shares of the inventory, or take the dividends in cash. Reinvesting will allow you to own more stocks, which leads to greater 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 market in general.

Dividend stocks can be a terrific investment regardless of whether you want to reinvest all the dividends on hold on to the stock for a long time, or use the income generated throughout the dividends.

For far more detail on the subject read Investing in Dividend Stocks at Investopedia. For a list of these stocks, visit 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 years. Borrowers and lenders can be matched up through a site or marketplace. Instead of going to a bank, the borrower receives a loan from an investor.

In some situations the borrower might not be able to be eligible for a loan via a traditional bank. And in many cases the borrower gets a better interest rate than they could receive from a bank. As an investor, you can earn a great return too.