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At first you may only be making a tiny amount of money passively, and you might even want to re-invest that money so it compounds and grows faster. But with a few time, its possible to create enough passive income that 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 effort. The money will flow in without too much being demanded of you. In some scenarios it might be long-term recurring income, and in other instances it might be short lived or inconsistent.

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

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 thoughts in this informative article because, in my opinion, they all require an excessive amount of effort to be considered as passive.

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Blogging will always need on-going work, either by yourself or by other people that youre paying.  Selling ebooks or courses will require on-going customer service, and youll need a consistent traffic supply in order to continue to make sales. It is possible and there are people who've been able to do it passively, but they make up a small percentage of people who really set out to get it done.

Ive been blogging fulltime for 10 decades and Ive sold ebooks and classes in the past. Theyre great ways to earn money, I just dont consider them to be passive, in the majority of cases. .

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

Now lets take a look at a few of the greatest ways to produce passive income. A number of these are investments that will need some site here money to begin with. Other folks wont require any money to begin. In case you dont have the money to invest now, consider starting with the methods that dont need any money, and then utilize that money you earn to invest. .

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Your first financial priority should be to build up an emergency fund that will cover all your living expenses for a few months. But dont put this money is a checking account or savings account at a local bank that pays you a horrible interest rate. You can open a high yield savings account or money market account with an online bank which will earn a much 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 fast 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 this stock, or take the dividends in cash. Reinvesting will let you own more stocks, which contributes 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 history of success. Because of this, these investments tend to be considered less risky than the stock market in general.

Dividend stocks can be a great investment whether or not you want to reinvest all the dividends on hold on to the stock for a long time, or make use of the income produced throughout the dividends.

For much more detail on the topic read Investing in Dividend Stocks in Investopedia. To get a list of those stocks, visit this collection from Dividend.com and this collection from more tips here DividendValueBuilder.com.

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Peer-to-peer lending (or P2P) has become extremely popular in recent decades. Borrowers and lenders can be matched up through a website or market. Instead of going to a bank, the debtor gets a loan by an investor.

In some situations the borrower might not have the ability to be eligible for a loan through a traditional bank. And in many cases the debtor gets a much better interest rate than they could get from a bank. As an investor, you can earn a great return as well.