Today, woman are not confined to earning income from one job. And that’s good news, as the more income you earn, the more you can save. There are many ways one can earn passive income, that keeps on growing, even when you’re not physically working in one spot.
Passive income is income that you earn on a regular basis, but not have made any effort to maintain it. It may also be called unearned income. This is still income that’s taxable, but may be treated differently by the IRS.
It contrasts with earned income, that is income that you get while working for someone who pays your wages, or income earned when you run your own business. This is income that may be from a salary, tips, and union or disability benefits.
Here are the top 7 ways to earn passive income.
1. Rental income. Even if you don’t have a separate house or condo to rent out, you may wish to explore the possibilities of renting out your basement, or a bedroom in your home, to generate extra income. Many people even rent out a room in their home as an office for a professional, who may need to be closer to town, but who doesn’t want to go to the major expense of renting an actual office space. There are even websites where you can list your spare bedroom as a bed and breakfast rental.
2. Bank account interest. The more investments you have, the more interest you’ll be earning. Sign up for compounding interest accounts, where the interest is immediately added to the principal deposit, and so the interest earns its own interest, going forward.
3. Book royalties. This may be from a book that you’ve sent in to a publisher, or it may even involve a book that you’ve self-published. The book may be offered for sale on Amazon, Kindle, Smashwords, Kobo, etc. If you have any sort of business expertise, consider writing it up, and putting it all together into a book that you can sell.
4. Pension plans. You’ll spend your working years contributing to a pension plan, where your money will grow. Interest will accumulate and you won’t have done anything but contributed regularly from every one of your paychecks. Once you’re retired, you’ll be able to regularly withdraw from your pension account. This will give you extra income beyond the money you get from government Old Age Security plans.
5. Portfolio income. If you hold any types of securities, such as stocks and bonds, they will could earn you passive income from dividends and bonuses.
6. Internet advertisements. There are two main ways to earn income if you own a website or blog. You can install Google Adwords, and earn money on visitor ad clicks, or you can place ads from businesses for a fee. These involve no investment from you, except for the time to insert the coding on your website.
7. Government issued savings bonds. These types of bonds are low risk, but will earn you accumulated interest on their maturity date.
|Elisabeth Donati is the owner of Creative Wealth Intl., LLL, creator of Camp Millionaire, Moving Out! for Teens, The Money Game, Celebrating Women and Wealth and several other financial education programs, products and services. She was the recipient of the 2010 Financial Educator of the Year Award from the National Financial Educators Council. She is known as The Financial Literacy Lady.She is author of The Money Jars: Your Magical Money Management System, The Ultimate Allowance, and co-author of Rocks to Riches for kids. Her blog, Financial Wisdom with a TWI$T, is a great place to start learning to think differently about money and investing.
Elisabeth is an expert in teaching the basic financial principles people need in a way that is engaging, empowering and fun. For information, visit www.CreativeWealthIntl.org or www.ElisabethDonati.com or call 805-957-1024.