Passive income refers to income that takes very little effort to maintain. There are many different examples of passive income; so one or more types should appeal to just about everyone. Rent from land or a dwelling is a passive type of income, as are royalties from books. Royalties from the sale of gas, oil, or mineral rights are another type of passive income. If you own part of a business, but do not participate in running the business, your portion of the income is passive.
Other types of passive income include the sale of photos or ebooks on the internet, affiliate programs, and internet advertising are other forms of passive income. The opportunities for passive income are endless and limited by only your imagination. The internet age has made it even easier to enjoy passive income; however, it has also opened the door to a new age of fraudulent scams.
Investing in stock, bonds, and securities is also another type of passive income as are retirement plans and pensions. Most advocates of passive income recommend that you experiment with several types of passive income. Just as the savvy investor does not limit himself to one single stock or security, don’t limit yourself to one type of passive income. In fact, most of the advocates recommend several different streams of passive income. This is insurance against one type of income failing and no other passive resources existing.
Another good point to make note of: research carefully into any form of passive income that requires you to part with money. There are plenty of schemes out there and if it sounds too good, it probably is. And don’t forget, your passive income is that, income, and the IRS considers passive income a taxable enterprise.
One interesting avenue of making smart money is auto pilot investing. The concept of autopilot investing works something like this: a given amount of money is invested and a profit goal is defined. Then investments, stocks, bonds, securities, cash are traded automatically until the investment goal is reached. The decision on what to buy or sell and when, is removed from you, all you have to do with autopilot investing is sit back and enjoy money that works for you.
Passive Income is money that you do not have to work for, and as such, can lead you down the road to greater financial freedom. When you have multiple streams of income, you are making smart money, money that works for you. Building multiple streams of income will not happen overnight, you will have to put forth some investment in time to find the strategies that will lead you to your personal road of financial freedom.
With smart money strategies using multiple streams of passive income you can enjoy money that you don’t have to work for, money works for you. Passive income can put you on your own personal road to financial freedom and independence. It’s not magic, it is smart money!