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At first you may only be making a tiny amount of money passively, and you might even want to re-invest that money so it compounds and grows faster. However, with some time, its potential to create enough passive income you could quit your job or retire .

Passive income can be a bit of a divisive topic. In general, passive income is any money you earn without putting in much work. The money will flow in without too much being demanded of you. In some cases it could be long-term recurring income, and in other cases it could be short lived or inconsistent.

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

Exactly what qualifies as passive income is up for debate. Most lists that youll find online will include things like 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 always need on-going work, either by yourself or from other people which youre paying.  Selling ebooks or classes will require on-going customer support, and youll need a consistent traffic supply in order to continue to make sales. It's possible and there are people who have been in a position to do it , but they make up a small percentage of individuals who really set out to get it done.

Ive been blogging fulltime for 10 years and Ive sold ebooks and classes in the past. Theyre great ways to earn money, I simply dont consider them to be passive, in most cases. .

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Nearly any business can be a source of passive income when youre paying others to run the business. That is true with both online and traditional businesses. That opens up even more chances than what will be recorded here.

Now lets take a peek at some of the greatest ways to make passive income. Some of them are investments browse this site which will require some money to start with. Other folks wont need any money to get started. In case you dont have the money to invest now, try starting with the methods that dont need any money, and then use that money you make to invest. .

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Your very first financial priority must be to build up an emergency fund that will cover all of your living expenses for a few months. But dont put this money would be a checking or savings account at a local bank that pays you a horrible interest rate. You can that site open a high yield savings account or money market account with an online bank that will earn a much greater return for you.

My spouse and I maintain 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 quick and easy, and can be done online. .

Some companies consistently pay dividends for their shareholders. As a shareholder, you can re-invest the dividends to buy more shares of the stock, or take the dividends in cash. Reinvesting will allow you to own more stocks, which leads to greater 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 market in general.

Dividend stocks can be a terrific investment whether or not you want to reinvest all the dividends on hold on to this see this website stock for quite a long time, or use the income produced through the dividends.

For much more detail on the topic read Investing in Dividend Stocks in Investopedia. To get 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) is becoming extremely popular in recent years. Creditors and lenders can be matched up via a website or market. Instead of going to a bank, the borrower receives a loan by an investor.

In some situations the borrower might not have the ability to qualify for a loan through a traditional bank. And in many circumstances the borrower gets a much better interest rate than they could receive from a bank. As an investor, you can earn a great return as well.