Get Rich With Passive Income

Have you ever heard of passive income? What about residual income? Many people have heard of the term, but they don’t know exactly what it means, and they certainly don’t know how to start earning passive income. In reality, it’s very possible to get rich through passive income streams. 

Look at all of the people who make passive income while they are watching TV, or cooking dinner, through peer-to-peer lending. I make more than $900 per month through passive income, through traditional investments,  peer-to-peer lending through sites like Prosper , and rental income.

For most of us, we earn our income. We wake up and head to a job that pays us an hourly wage for being there. There’s absolutely nothing wrong with that, but if you want to earn true wealth, it is incredibly difficult to do on earned income alone. Passive income is the way to go.

passive income

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What is Passive Income?

Passive income is exactly as it sounds. It is income that comes in regardless of whether you lift a finger or not. It used to be that all you had to do was go to the mailbox to get your check, but today everything is just directly deposited into your account, so you literally don’t have to move a muscle! Hence the word “passive”.

Now, of course there must be some work involved in order to earn an income. But, the difference between passive income and earned income is that for passive income, you do the majority of the work upfront before there’s even a chance of getting that direct deposit. There’s a chance that your hard work will make you very wealthy in the future, or your tireless efforts might never produce a cent! This is the challenge of passive income. You really need to have a great vision for the future and trust that your efforts won’t be for nothing.

The classic example of passive income is from Bruno, the bucket carrier. Every day, Bruno would get paid to carry buckets of water from the stream to the village. The pay was good, but Bruno thought there must be a better way! After thinking for a few days, he figured that he could dig a trench from the stream to the village and water would flow freely. He took his idea to the governing counsel of the city. If his idea was a success, he wanted to be paid 1 cent for each cup of water that came in through his trench. The city leaders thought he was nuts, but they agreed.

Bruno worked early mornings and late nights, all with the hopes of making great wealth, but got paid absolutely nothing until his job was completed. Finally, the day came when he reached the village. Many people laughed at him when he was working for nothing, but now they realized his vision. He could simply sit in a chair and effortlessly collect his money while the village received their water. His money was now entirely passive.

Get Rich Through Passive Income

Passive income is starting to sound pretty good isn’t it? But how could someone earn passive income today? There are quite a few avenues actually. One of the most well-known is renting out real estate. It’s been around for a while, but this practice is still producing many millionaires each year. If you’re a talented writer, collecting royalties on your book qualifies as passive income. Music also counts as passive income since you’re collecting money each time someone purchases a song (with no continual effort on your part). If you can think of a way to work hard now, but collect money continually in the future, then you’re well on your way to developing a passive income. Do this again and again, and you will soon be a very wealthy individual.

Have you started earning passive or residual income? Are you looking to become wealthy through residual income?

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17 thoughts on “Get Rich With Passive Income

  1. A few months ago, I started dabbling in dividend growth investing as an avenue for generating passive income. I like it because if I take the tine to focus my investments on established, high quality companies, I can almost “set it and forget it” and allow the dividends to keep rolling in. Still learning, but my ultimate goal is to earn enough annually in dividends to completely support a modest lifestyle/retirement.

  2. Another definitive passive income is of course a pension but you have to wait for that! But if you turn it round, pension=passive income or passive income=pension then you will see that building a passive income is also building a pension. All you will want in your retirement is money. It doesn’t matter what you call it!

  3. Great example with that bucket/trench story! I think the key thing people need to understand about passive income is that it’s not 100% passive from beginning to end, much of the time. There might be work or effort required to be invested up front. From there, however, getting payments with little to no effort is the passive phase of it. Which sounds great!

  4. I think we all would really like to have some sort of passive income but not a lot of us are willing to put in the work or risk to make it happen. Real estate is a great choice for passive income but there are a lot of people that refuse to take the chance to get into real estate from fear. Not all passive incomes are equal. Some people think blogging is passive and in my opinion it requires a lot of work and hustling. I wonder how many things out there are truly passive in nature but still make money.

  5. I’m definitely wanting to work on passive income. The opportunities are there and I can’t wait until I have more time to devote towards it.

  6. Passive income should be a goal of everyone. I also like how the example of Bruno pointed out that he worked long hours with no guarantee of payoff. Passive income is nice but it only comes with hard work and smart planning.

  7. CF says:

    We are working on our passive income streams. Our main targets include our dividend portfolio and our rental income. We’re slowly increasing our earnings so hopefully one day… 🙂

  8. Thanks for your information. I am also searching for this kind of site like “residual income” and finally I got it with a great post. Building a online marketing business is easy if you know the right tools combined with the right vehicle. Lead generation by attraction marketing.

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