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What Is Passive Income?
First off, let’s bust a common myth about passive income. Passive income is not an easy way to earn a lot of money quickly while you sit on your butt. You’ll need to put in the work—at least at first.
So, what is passive income? It’s a way to earn steady money with little to no daily effort. But the keyword there is daily. Some passive income ideas—like building a blog or an app—take work (and sometimes money) to get up and running. But they could (eventually) earn you money while you sleep.
Why Build Passive Income?
Your income is your greatest wealth-building tool—a tool that typically requires you to clock in five days a week. Even if you love your job, we’re willing to bet you wouldn’t mind earning some extra income without the blood, sweat, tears and time commitment of another job. Here’s what building a passive income can do for you:
Increase your wealth
Allow you to retire early
Protect you from a complete loss of income if you lose your job
Provide an additional source of income if you outlive your retirement fund
How Much Money Can I Make?
Passive income generally won’t make you wealthy overnight, so forget about any get-rich-quick schemes you’ve heard of. But steady and profitable passive income options can build some serious money over the long haul. We’re talking anywhere from a few thousand dollars to hundreds of thousands of dollars—depending on which option you go with
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