After reading “Rich Dad Poor Dad” by Robert Kiyosaki, I was excited and left with questions, like if passive income was real… Robert explains that his Rich Dad got rich from passive income, notably through real estate, but it’s not given to everyone to become a real estate tycoon.
Is passive income real? Passive income is real and can be produced through traditional means such as investments, stocks, bonds and real estate, or through modern means such as online endeavours (ex. peer-to-peer platforms and online businesses such as blogs).
This article has a look at some passive income questions beginners may have, like if passive income is a myth, how it can make you rich and easy passive income ideas for beginners.
Passive Income is Not a Myth
Many passive income books and YouTubers describe passive income in a way that makes it almost sound like a myth. They have a tendency to give you the impression you only have to work a couple of hours to produce millions of Dollars and get rich quick. That is far from the truth.
However, passive income exists and you can make it too. There is no need to be investment-savvy or a real estate tycoon. This article explores why passive income is real and how beginners can also make passive income. This article on our site gives examples of famous people making passive income.
Can Passive Income Make You Rich?
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Passive income can make you rich if you have multiple, scalable, sustainable, income streams that demande little to no time to maintain and provide enough ROI (Return on Investment) to exceed your expenses. The world’s wealthiest people have passive income sources.
This article on our blog covers the question of how passive income can make you rich in detail. To quickly summarize the article, in order to know how much passive income can make you rich, you need to know what your personal definition of “rich” is. There is an outline in the article that can help you calculate the costs of your wildest dreams depending on your current debt and expenses.
Once you know what “rich” means to you, you can start looking into building scalable, sustainable passive income streams. The passive income streams you bild should yield high ROI (Return on Investment) to cover and exceed your expenses so you can live your dreams. Beginners Passive Income is dedicated to passive income streams and always evaluates how passive, scalable and sustainable each income stream is. Keep reading for passive income ideas for beginners.
The Truth About Passive Income [Your Time]
As much as passive income actually does exist, it will take time, patience, motivation and perseverance to build a truly passive income source. This is something that is often overlooked by passive income gurus who tell you that you can get rich quick. It may take months or years to build a truly passive income source.
Project 24 by Income School is a blog run by Rick and Jim who teach how to build passive income blogs (about 24 months). I love their material because they are very upfront and honest about how long it takes to make a decent passive income from blogging. They also provide non-spammy ways to build very sustainable income sources from blogging. Learn more about their course here.
Passive Income Ideas for Beginners
You may still be wondering how to make passive income as a beginner. Beginners Passive Income covers hundreds of ways to make passive income with guides, tips and tricks for beginners. Feel free to read more here (opens in a new tab).
Like the title of this article states, it has never been easier to make passive income. Imagine yourself living back in 1580. If you were born into a peasant family, you probably would have remained a peasant your entire life. But today, you can be from anywhere in the world, and have any background. As long as you have an internet connexion you can start making passive income.
Passive income ideas include traditional means like financial investments, to online endeavours to businesses. The following sections provide different types of passive income and passive income ideas for beginners. Click on the link to view more information on our site.
Passive Financial Investments
The most common passive income stream people think about are more traditional financial investments (for example, stocks and bonds). Although hundreds of (well known, successful) people have become very wealthy this way, these passive income sources may not be beginner-friendly. So here are some easier passive financial investments for beginners:
- Cashback credit cards
- Savings accounts
- Getting out of debt
Passive Income Businesses
Some businesses can eventually be automated and outsourced for passive income. However, any business that you start for the purpose of passive income needs to be built to create just that, passive income. Otherwise your business will demand a lot of your time and be a very active endeavour.
For example, if you are planning on hiring a team of people, staying ahead of the competition through innovation, and having loyal customers that stand behind your brand, your business may not be passive. Some passive business ideas include:
- Storage space rentals
- Vending machines
- Game machines (Arcade Style)
- Self-Service Stores
- Self-Service Storage
- Self-Service car washes
- Food Trucks
One of the most amazing opportunities of our time is making passive income online. You can easily create a YouTube channel or a blog these days, and they can be excellent sources of eventually passive income. But you do need traffic to make money.
There are proven formulas for success when building blogs for example. Check out Project 24 by Income School for example. Ricky and Jim provide clean, clear ways to make a passive income generating blog. Here are some ideas of online sources of passive income:
- Monetized blogs
- Print on demand
- Domain Flipping
- Affiliate marketing
- Stock Photos & Videos
- YouTube channel
The peer-to-peer economy is an incredible opportunity for beginners wanting to quickly get started making passive income online. These platforms allow you to get in touch with people looking for what you have to offer. They are usually, but not limited to, rentals. Here are some examples, click on the links to learn more on our blog:
Side Hustles [Outsourced]
You may have talent you can cash in on. What do you excel in, at work, at school or in your free time? What are your favourite hobbies? If you have some sort of talent, there may be a way to monetize it through a side hustle that you eventually make passive by outsourcing. Here are some examples of side hustles for beginners:
- Recording audiobooks
- Product photography
- Implementing chatbots
- Influencer marketing
- Photoshop editing
- Data entry
- Creating jingles
- Logo design
Follow Your Passions No Matter What
No matter what type(s) of passive income sources you decide to build, you must do what you are passionate about. If not, you will lose motivation or do things for the wrong reasons (ex. just for the money).
For example, if you decide to build a blog following Income School’s tested formula, you should write about topics you are interested in. Otherwise the chances you actually put in the work that is required to build a profitable niche blog are very slim.
This blog covers hundreds of ways beginners can make passive income. Read our related articles to learn more about what passive income is and how you can make it.
Here are a couple other questions related to if passive income is real.
How to Earn Passive Income as a Student? Students can earn passive income through traditional sources such as investments, stocks, bonds and real estate, or through more modern means such as online endeavours (ex. online businesses such as blogs).
Passive Investment Ideas Passive Investment Ideas include financial investments (ex. savings accounts), passive businesses (ex. storage space rentals, ATMsm laundromats), online businesses (ex. monetized blogs, print on demand, affiliate marketing), peer-to-peer rentals or outsourced side hustles (ex. copywriting).