If you are looking for extra money but are already stressed for time, you may be looking to generate passive income. Generating passive income allows provides you the benefit of bringing in money without forcing you to work extra. Passive income essentially means that you bring in the bucks while you sleep. It can can be quite appealing, but it's not always easy to generate income that doesn't require work. So how does one generate passive income?
Ways to Generate Passive Income
There are two general ways to create a passive income. The first, and perhaps most popular way to generate a passive income is to invest money in index funds or ETF's. The only problem with this means of generating passive income is that it takes money to earn money. If you want a large income that doesn't require work, you have to have money to invest in the first place. Granted, most people will invest over many years. They may contribute to traditional retirement funds, but will direct any extra investments towards these funds that will generate passive income from the return.
The other way that I see to generate passive income is to create a business and earn a large enough profit that you can hire out the services and still keep a profit for yourself. You can spend your time creating more businesses that will earn a profit while your business is kept running. This not only benefits you, but provides jobs for those that you hire.
How I am Generating Passive Income
If you have been following this blog for any length of time, you know that I am following the second plan. The primary reason is that I don't have the money laying around. So, what else should I do? If I were to try to save up the money to have an income that replaces my day job, it would take me ages. Thus, instead I am creating blogs in order to create enough money to quit my day job. I have had success with it so far and think that within the next few years, I should be able to sustain this income by only working three days a week (or less).
If you want to create a passive income and don't have the cash, I think that you can do it too. Subscribe to my RSS feed to receive updates when I publish new material. I share how I am working to generate a passive income in order to help you do the same. It's not easy, but with enough determination and effort, it is possible.
Shawn Manaher is a former financial advisor, has founded 5 online businesses, and is a coach, speaker, podcast host, and author. He's been featured on Forbes, The Consults Corner on TAE Radio, The Writing Biz, What's Your Story, and more.