AbigailP That’s a really valid point, and I totally understand that piling more work on top of your day job isn’t for everyone. Before I started freelancing, I relied only on my day job because I was too drained to focus on other things by the time I got home. I think I’m used to it now, but it’s not easy, especially with chronic fatigue. Having a network to fall back on, or having a Plan B, is still very valuable.
For example, you might take photos and have them available for a fee at sites such as shutterstock.com or istockphoto.com. Similarly, you can create and upload designs at sites such as zazzle.com and cafepress.com, where people can buy them imprinted on shirts, mugs, and so on. Similarly, if you write an e-book (which can be as short as 6,000 or so words), you might find that people are interested in buying it, perhaps via Amazon.com's direct publishing service.
According to Uncle Sam, you need to be "materially involved" in an enterprise to earn active income. With passive income, it's just the opposite, as the IRS deems you to be earning passive income if you're not materially involved with a profit-making enterprise. By and large, expect income to be taxable if you are engaged in a passive income enterprise. You will need to report earnings to the IRS.
It is our duty now to begin to lay the plans and determine the strategy for the winning of a lasting peace and the establishment of an American standard of living higher than ever before known. We cannot be content, no matter how high that general standard of living may be, if some fraction of our people—whether it be one-third or one-fifth or one-tenth—is ill-fed, ill-clothed, ill-housed, and insecure.
I don’t really know much about those…I should take a look from a diversification standpoint. If you don’t mind me asking, what do you target for your net effective tax rate on your passive income? Also, I’m sure you’ve probably covered this somewhere, but how do you deal with healthcare? One more dumb question…have you found that you spend more or less money than you anticipated once you retired?
Don't mistake passive income with zero work. It's still work, it's just that your income is not directly tied to the hours worked. Anyone who owns rental properties knows that it's considered passive income but there is quite a bit of work involved. The work is front heavy but if you are lucky, you can collect rental checks without incident for many months before having to do work.
* Freelance writing: Quality freelance writing takes tremendous effort. Ironically, the better the quality of your writing, the more you don’t want to freelance and just keep the articles for your own site. Freelancing is a great way to earn side income, however, it’s not really for me. I’ll probably take on one or two freelance jobs maximum per year and write no more than four articles a month elsewhere.
Add Leverage (Mortgage) and you greatly increase the ROI especially from the perspective of using Rents (other peoples money) to pay down the mortgage and increase your equity in the property over time. At this point then yes price appreciation is secondary bonus and we have an arguement of how and why Real Estate can be better than Growth Stocks in some scenarios and for some investors.
P2P lending is the practice of loaning money to borrowers who typically don’t qualify for traditional loans. As the lender you have the ability to choose the borrowers and are able to spread your investment amount out to mitigate your risk. The most popular peer to peer lending platform is Lending Club. You can read our full lending club review here: Lending Club Review.
A perfect example of the Active Problem Solving + Automation concept is in my online courses I’ve created over the years, or my free webinars I’ve created more recently Each of my online courses and webinars are targeted to help people with specific problems, whether that’s in the area of affiliate marketing, podcasting, building a brand, and so forth. I am always improving upon the courses, but they are also evergreen for my audience.
Part of providing value is building trust. Don’t link to things that aren’t of good quality or people won’t trust your recommendations. The other part of making an audience is consistency. It matters less how often you post than how consistently. If you only have time to do one post a month, that post should come out on the same date and time each month.

I do remember you mentioning that & how it was your ticket to exit softly and give you time to build the passive income side. Most likely when I do exit it will either be through a sale of the business which would come along with a employment contract or if a worthy successor(s) can take it over, then the business is just another annuity throwing off income. Anyway, I’d enjoy writing a guest article after I survive the next few weeks of work and weddings.

Lending Club (U.S. Residents Only) – I talk about Lending Club in every one of my income reports, because I still believe it’s the best source of passive income, even though it’s not my largest source.  You can get started for as little as $25, and over the past 2+ years, my interest rate has been 7% or higher, which I think is very good given the relatively low risk involved.  This is even more true given the recent market downturn. You can read about how I select my investments here.
Refinancing your mortgage is a passive income generator? Yup, it sure can be. If you're making monthly mortgage payments of $1,600 now, and you can reduce that to $1,300 per month by refinancing your home loan at a lower interest rate, you'll keep $300 in your pocket each month. Of course, refinancing isn't free -- there are closing costs. Still, if you plan to stay in your home long enough to more than break even, refinancing is well worth it. As an example, if your closing costs are $6,000 and you're saving $300 per month, you'll break even in 20 months -- less than two years!
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And, let’s face it; not everyone wants to sling body wraps or nutrition shakes to their family and friends. That’s why offering a service is often one of the best, and least uncomfortable, ways to earn side income doing something you love. Maybe you want to clean houses or rake leaves or help people file their taxes. It’s totally up to you, and that’s the beauty of this option.
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