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Income on the backburner -

Passive income can be earnings from rental property or any other business where the person earns without being involved.

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It's useful as a booster to your regular income -

It’s commonly used as a booster to the income of a “be your own boss” type of person.

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The IRS definition -

The IRS defines passive income as either “net rental income” or “income from a business in which the taxpayer does not materially participate."

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The internet has facilitated everyone to earn passively -

With the booming of technology and online shopping, the definition has become looser. Nowadays passive income means any regular income that requires little or no effort.

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Traditionally, it was just silent investors -

Silent investors would traditionally be earners of passive income. They invest money in a business, do no work in the business, and are then paid back over time.

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You don't need to be wealthy to earn a passive income -

Luckily, in today’s economy, we don’t have to have half a million dollars to invest in a restaurant or own multiple properties to start earning passive income.

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Dropshipping -

Here's an example. Dropshipping is when you set up an online store that sells something to a customer that you don’t yet own or possess. The wholesaler delivers it directly to your customer.

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Dropshipping and ethics -

It’s very important to consider ethics while doing this. You might want to ask yourself whether you’re comfortable with taking advantage of child labor, for example.

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Monetize what you already have -

Here's some helpful advice:i f you are already running a blog or website, it can earn money through affiliate links, courses, sponsored posts, products, book deals, and more.

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Sell your skills and knowledge -

People can earn a lot of money by sharing their skills and knowledge through course providers such as Coursera. Once you have put together the information, there is no more labor required.

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Property -

Rental properties are probably the most well-known tried and true way of earning a passive income. However, it’s tricky. You could make a bad investment and lose more money than what you earn.

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Buy and sell online -

You can take advantage of websites like eBay if you can work out how to buy something cheaper than what the average person buys it for.

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P2P lending -

You could consider person-to-person lending through a third-party intermediary such as Prosper or LendingClub. You earn interest on the money you loan.

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Lending is risky -

However, it takes a while to master this business, so in a way it might not be considered fully passive. It’s also not entirely secure...

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Stocks -

Investing in the dividend-yielding stocks of a company means that you will be paid at regular intervals from said company.

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A volatile market -

Again, this market is volatile. You really need to be comfortable with a company's ability to pay out.

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Owning an app -

There’s a reason that this market is flooded. Once the app is created, it takes little effort to maintain and you can generate an income through advertising.

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Does this app actually add value to someone's life? -

The true challenge here is trying to come up with an app that actually has value for people. Apps’ popularity is short-lived, and you need to know about global privacy law.

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Rent your space -

One simple way to get more money flowing in is to rent a spare room in your house on Airbnb or even in the longer term.

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Use your car to advertise -

Some specialized advertising agencies will help you to advertise on your car so you are being paid while you drive around.

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How it works -

Usually, the agency will find the appropriate client to “wrap” the car with based on your mileage and where you regularly drive.

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Rent your stuff -

Another way to earn passive income is starting to rent out household items. You can scale up if a particular area begins to serve well.

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Rent your car out -

If you have a car that you don't care that much about, then renting it out could be a good option. There are plenty of websites that allow you to do this.

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Try to monetize your photos or music -

If you are a casual or semi-professional photographer or musician, a great way to earn some extra bucks without doing any work is simply licensing the music and photos you already have so people can pay to use them.

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Get into the fashion industry -

If you’re a designer or visual artist of some kind, it may be a good idea to design a t-shirt with one of your pieces on a website like CafePress. If people like the design and buy it, you'll earn money.

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Vending machines are consistent earners -

Vending machines are by nature a typical source of passive income. You simply stock them and they do the rest. If you can come to own some vending machines, they will earn you plenty of cash. 

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Sell your data -

Some companies will pay you for your data. You can install an app on your phone that runs in the background and you earn rewards while it does. The question is: do you really want to sell your data?

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It may not be as easy as it sounds -

Keep in mind, establishing an income through many of these avenues comes with a risk, and it’s not necessarily easy. These are simply some ideas to inspire the journey. Consider what you have that could be valuable to other people that doesn’t require your time or effort. That is the key.

Sources: (The College Investor) (Indeed) (Bankrate)

See also: Investment tips everyone should know

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