Passive income is money you earn when you are not working. You can earn passive income while you sleep. Your day job does not provide passive income because you have to show up at work and trade your hours for money. Passive income doesn't require you to trade in your hours.
Where to find passive income?
I believe the best and easiest source of passive income comes from earning dividends. A dividend is the money you get for owning shares in companies. For example if you own 1000 shares in a company that is paying out an annual dividend of $1 per share, you will receive $1000 each year for as long as you own those shares and as long as the company continues to pay the dividend. The dividend money is yours to keep, you can spend it if you wish or re-invest it into shares of other companies.
How much can you earn?
How much you can earn in dividends depends on two things:
Having both time and money to invest will increase the amount of dividends you will receive. I have some students now earning $15,000 to $35,000 in dividends each year.
Here are three examples:
Combined the 3 companies listed above have already generated $15,230 dividends. This year you would earn an additional $1599 in dividends, and given their history of increasing dividends, you can expect to earn more than $1599 next year.
The truth is, had you re-invested the $15,230 in dividends over the years, your actual annual amount of dividends this year would already be over $1599.
These dividends truly are passive income, once you've purchased the shares there is no additional work you need to do. As long you you continue to own these shares, the dividends will arrive like clockwork even when you are sleeping.
Create your own stream of GROWING passive income
Focus on buying quality dividend paying stocks when they are priced low (undervalued). Your passive income will grow when you re-invest your dividends, and you invest in companies that have a history of increasing their dividends.
Here's a list of a few companies, and their consecutive years of dividend increases:
Start today to build your own stream of growing passive income, and I can show you how.
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