Your main job is not a passive income stream.Ī side hustle – While a side hustle can potentially generate passive income, they’re more often an example of active income as they require your attention and effort to maintain. Your job – The idea of a passive income stream is to boost your regular earnings or allow you to retire early. While a side hustle or second job is a great way to boost your income streams, unless it’s operating in a way that allows you to step further and further back (while earning more and more cash), then it’s not truly passive.

What is not passive income?Īs we mentioned, passive income is often misunderstood and confused with side hustles. If you’re willing to commit your time, skills, and money towards your goal of generating passive income and potentially enjoying early retirement, then you could be making thousands in the long run. Sure, there might be the odd property inspections and tenant changes to deal with, but the majority of your time as a landlord will be enjoying the passive income earned through the rent.īasically, passive income is a long-term decision that involves short-term trade-offs. While there is some work and effort required to find the right property, deal with the legal side of things, and get it ready for tenants – plus financial investment in terms of the mortgage and deposit – once you get your tenants in, you can be earning money with minimal effort. One great example of a passive income stream is buying a property to rent it out. In other words, over time, effort goes down, and profits go up… Sounds great, right?! With these ingenious passive income ideas, you’ll be one step closer to living your dream life, with all the cash you need to fund it! What is “passive income”?īefore we get into the best passive income ideas to suit your lifestyle and talents, it’s worth taking a moment to establish what we actually mean by passive income, as this phrase is frequently misused or misunderstood.Īlthough passive income isn’t some magic money-making scheme that will get you rich with no work, it is a way of maximizing returns so that you can work decreasingly hard over time. But is it actually possible to get rich without lifting a finger? Earning money while you sleep or sip mimosas on the beach is a dream for so many of us (and even those who say it isn’t are probably lying!).

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