What is passive income?

Passive income refers to earnings generated with minimal effort or active involvement. It’s money earned with little to no effort on the part of the recipient. This can include various sources such as rental properties, money saving, investments, royalties from books or patents, and online businesses where you earn through affiliate marketing or advertising, among others. The key characteristic is that it continues to generate income with little ongoing effort from the recipient.

Certainly, here are 10 tips on how to generate passive income:

1. Open a Separate Savings Account: Consider opening a separate savings account specifically for your savings goals. This separation makes it easier to track your progress.

2. Create an Online Course or Write an E-Book: If you have expertise in a particular subject, create an online course or write an e-book that people can purchase.

3. Invest in Real Estate: Purchase rental properties that can provide a steady stream of rental income.

4. Start a Blog or YouTube Channel: Create valuable content through blogging or videos, and monetize your platform through ads, sponsored content, or affiliate marketing.

5. Create a Mobile App: Develop a useful mobile application and earn income through in-app purchases or ads.

6. Peer-to-Peer Lending: Lend money through peer-to-peer lending platforms and earn interest on the loans.

7. Automate an Online Business: Build an online business that can be automated, such as dropshipping or print-on-demand services.

8. License Your Photography or Artwork: If you are a photographer or artist, license your work to be used in advertisements, merchandise, or publications.

9. Create a Subscription Box Service: Curate and sell subscription boxes filled with niche products that people can subscribe to on a monthly basis.

10. Purchase Vending Machines or ATMs: Invest in vending machines or ATMs, which can generate income through sales or transaction fees.

Remember, each method requires careful consideration, research, and initial effort to set up. Passive income often involves an upfront investment of time, money, or both, before it starts generating income passively.