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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 make 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 effort. The money will flow in without too much being demanded of you. In some cases 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 require as much effort in the future when youre making the money.

Exactly what qualifies as passive income is up for discussion. 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 informative article because, in my opinion, all of them require too much effort to be considered as passive.

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Blogging will always require on-going work, either by yourself or by other people which youre paying.  Selling ebooks or classes will need on-going customer support, and youll need a consistent traffic source in order to continue to create sales. It's possible and there are individuals who've been in a position to get it done passively, but they compose a small percentage of individuals who actually set out to get it done.

Ive been blogging full-time 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 more 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 recorded here.

Now lets have a look at some of the best ways to make passive income. A number of these are investments that will need some money to start with. Others wont need any money to get started. In a knockout post case you dont have the money to invest now, consider starting with the methods that dont need any money, and then use that money you make to invest. .

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Your very first financial priority must be to build up an emergency fund that can cover all your living expenses for a couple months. But dont put this money is a checking 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 account with an online bank which will earn a lot greater return for you.

My spouse and I keep 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 easy, 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 check stocks, which contributes to greater dividends in the future (ideally).

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The companies that consistently pay dividends tend to be content large companies with a long track record of success. Because 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 this stock for a long time, or use the income produced through the dividends.

For far more detail on the topic read Investing in Dividend Stocks at Investopedia. To get a list of those shares, visit this collection from Dividend.com and this collection from DividendValueBuilder.com.

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Peer-to-peer lending (or P2P) has become extremely popular in recent decades. Borrowers and lenders can be paired up via a site or marketplace. Instead of going to a bank, the debtor receives a loan by an investor.

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