Have you ever dreamed of quitting your full-time job and earning a substantial income? Have you ever thought of enjoying life in a relaxing way while you do not need to be worried about money anymore? This looks like a spam but for sure it is not as I am just one of those who is developing and exploring passive income streams. To achieve the state of financial freedom, passive income is the key that is good enough to eliminate your financial worries and enables you to enjoy life doing whatever you like. At that point, you will have the freedom to choose to work on what you like or even not to work anymore.
So what is passive income? According to Investopedia, passive income does not include earnings from wages or active business participation, nor does it include income from dividends, interest or capital gains. To enjoy such income, it takes time to build. There are numerous methods and you may get familiar with some of them already. Examples include rental income from property, royalties of publishing a book, advertising income from website, etc. Personally, for a business or an investment which does not involve using much own labor while it generates income and cash flow is a good way for me to earn passive income. Some of them take cost while all of them require knowledge and time. And it is not definitely the get-rich-quick trick and all of them cannot happen overnight. All you need to make that happen is hard work and perseverance.
Passive income which requires capital
For this category, you can enjoy the sweet success after bitter work. First of all, work hard to earn income for saving and accumulate the sum to be your first pot of gold. Make use of your financial knowledge to invest in stocks or bonds to generate substantial dividends and interest with power of compounding interest. For example, when you invest $10,000, given that there is 5% of interest income annually, there will be $265,000 in sum after 20 years. To be able to earn rental income, similarly, you need to save a sum to buy a property which may be a flat or a parking space beforehand.
Passive income which does not require much capital
There are many examples. To name a few, the ways to generate passive income include an automated online business, a profitable blog which can generate advertising income, writing a book and getting it published to earn royalties, and writing online articles to earn advertising income.
To make it a success, it requires the knowledge and effort to build. For instance, for a profitable blog, you need to put good content into the blog so that it can attract audience as well as advertising companies. For the online writing to earn residual income, there are many websites, to name a few, such as Triond, Squidoo, infobarrel, xomba at which you can write articles and your earning will depend on the advertising income the website receives.
For you to have a brief idea on how long we can generate passive income from online writing which earns residual income, let’s me give you an example with calculation. Basically, a good article can earn you US$1 per month per approximately 100 clicks, so you need to write 100 quality articles which enable you to earn US$100 per month. So when can you quit your full-time job? It all depends how much you need to spend monthly. For instance, if US$1000 is already a good residual income for you, then you need to write at least 1000 good articles. That may require around 18 months to do so if you can write around 2-3 articles per day. For me, I need to take around 1 hour or more to write a good article, depending on how much research work is required. You may write at a faster pace than me.
Seeking financial freedom is always my goal. Let’s work hard together and make it happen.
Some good articles for you to learn and enjoy: