Traditionally, income is derived from work. Someone makes an hourly wage or yearly salary based on specific expectations of the work they will do. However, this is not the only or easiest way to make money.
The easiest way to make money is passive income. Passive income is defined as income “ that requires little to no daily effort to maintain.” This means that no matter what someone is doing, whether at work, at home, or even at their kid’s Little League game, they are making money.
The trouble with passive income is that while it seems easiest, it often takes a lot of work and other income to get to the stage where it can become a reality. This is because the most lucrative passive income opportunities, such as real estate, require a person to have a lot of money to get involved. On top of that, many people recommend having your own house paid off before even considering buying rental property.
However, this does not mean that passive income is only for the rich. There are many ways someone who is not ready to dive into real estate can start earning money as they sleep.
Dave Ramsey suggests renting out unused storage space, and there are multiple companies that allow someone to do this online, like neighbor.com.
Another piece of advice he gives is to rent out other items that someone already owns. The most popular example is Airbnb, which allows someone to rent out a room or floor of their home, but there are also plenty of other options, such as renting out a car or trampoline.
Another potential form of passive income would be starting a blog, a Youtube channel, or any other web page that could host advertising. If the creator can get it to a point where people will pay to advertise on their page, they will continue to make money as long people are viewing their content.
This applies to digital products too. Anything like an audiobook, e-book, or app will continue to bring in income after it has been created and marketed.
These are just a few of the many options available to help bring in passive income. Just remember, anything that brings in money without the person maintaining a “daily effort” counts. Everyone needs to find what works for them.