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At first you may only be making a small amount of money passively, and you may even want to re-invest that money so it compounds and grows faster. But with some 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 that you make without putting in much effort. The money will flow in without too much being required of you. In some scenarios it might be long-term recurring income, and in some other instances it could be short lived or inconsistent.

In some cases youll need to put in some effort up front, but then it wont require as much effort in the long run when youre making the money.

What qualifies as passive income is up for discussion. Most lists that youll find online will include things such as blogging, writing e-books, or creating your own course. Im not including those ideas in this post because, in my own opinion, they all require too much effort to be considered as passive.

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Blogging will constantly need on-going work, either by yourself or by other people that youre paying.  Selling ebooks or classes will require on-going customer support, plus youll need a consistent traffic supply in order to continue to create sales. It is possible and there are people who have been able to get it done passively, but they compose a small percentage of people who actually set out to do it.

Ive been blogging fulltime for ten decades and Ive sold ebooks and classes in the past. Theyre great ways to make money, I simply dont consider these 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 other people to run the business. This is true with both online and traditional businesses. That opens up even more possibilities than what will be listed here.

Now lets have a peek at a few of the best ways to produce passive income. Some of these are investments that will require some money to start with. Other folks wont require any money to get started. If you dont have the money to invest now, consider starting with the methods that dont need any money, and then utilize that money you make to invest. .

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Your first financial Get More Info priority must he said be to build up an emergency fund that will cover all your living expenses for a few months. But dont put this money is a checking account 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 much better 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 1.85% APY and CIT savings accounts are earning 1.55% APY. Thats 22x the national average! Opening an account with CIT is fast and simple, and can be done online. .

Some companies consistently pay dividends to their shareholders. As a shareholder, you can re-invest the dividends to buy more shares of the inventory, or take the dividends in cash. Reinvesting will allow you to own more shares, which leads to more dividends in the future (ideally).

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The companies that consistently pay dividends tend to be large companies with a long history of success. Because of this, these investments tend to be considered less risky than the stock exchange 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 quite a long time, or make use of the income produced throughout the dividends.

For much more detail on the subject read Investing in Dividend Stocks at Investopedia. For a list of those stocks, visit this collection out of Dividend.com and this collection from DividendValueBuilder.com.

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Peer-to-peer lending (or P2P) has become extremely popular in recent years. Creditors and lenders can be matched up via a site or market. Instead of going to a bank, the debtor gets a loan by an investor.

In some situations the borrower might not have the ability to be eligible for a loan through a traditional bank. And in many cases the debtor gets a better interest rate than they could get from a bank. As an investor, you can earn a good return as well.