Jan 08 2009
Passive Streams of Income - Why Bother?
Time is the one thing I run out of everyday. No matter how much I want to get done, the clock will not slow down for me. Spending time with my family is a priority, but so is providing financial security for them.
There are only 24 hours in a day. Every person alive has the same amount of time available to use as they see fit. So what can you do now that will free up some time in the future? How can you create passive streams of income that will allow you to work less, make sufficient income ( I will leave that amount for you to decide) AND spend more time with your friends and family?
To begin with, let me define what I consider passive income. Passive income is income that is generated over time, with no additional input involved. Basically, you do the work up front and the work continues to work for you - month after month after month with NO additional work required from you. I like to call it nature’s perfect business.
There are many ways to create your own passive streams of income. These can include the following:
1. Dividends - Many of the America’s biggest companies give their shareholders a piece of the income earned from operations each quarter. Companies like Coca-Cola (KO) and Exxon Mobil (XOM) have continued to provide dividends even during the current Bear Market.
2. Rental Properties - Although rental real estate is out of fashion currently, there is some serious money to be made in the real estate market. When prices fall, as we have seen lately, the time to buy magically appears. Not too long ago, Donald Trump bought Trump Towers for a song and a dance simply because no one else was willing to risk such a purchase. Tread lightly when purchasing real estate for investment purposes. There are numerous tax laws that you must be aware of PRIOR to beginning your real estate empire.
3. Royalties and/or Commissions -Creators of artistic or literal works can earn large amounts of passive income from their body of work. Pat, over at Smart Passive Income, has literally created a gold mine with his InTheLeeds website and study guide. Not only does his site generate advertising revenue, he continually sells his book while he is sleeping. You do not, however, need to have your own product in order to generate passive income.
You can earn money writing articles for sites that will share the revenue earned by your creations with you. A few such sites include eHow, Bukisa, and Today. Maria, over at My Work at Home Blog, has had one of her articles earn over $1,000 by itself in the past year. Talk about your passive income. I would imagine she spent an hour creating that master piece. That is what I would consider a GREAT hourly rate.
For me, freeing up time is the name of the game. I continually work on my passive streams of income so that one day they can work for me!
What have you done today to create income for your future? Please consider SUBSCRIBING to my feed!
