Ways To Have A Passive Income

Ways To Have A Passive Income

Passive Income

Passive income is not just a dream it can be reality if you put you put your heart, mind and soul into it. Let’s first take a look at what passive income is; Google calls passive income as income that is a result from cash flow received on a regular basis requiring minimal work or effort by the person receiving the income. Most of us want to break away from the corporate world and free up time to spend with family and friends but at the same time we want to be the bread winner for our family.   This is where passive income comes in. When an income stream takes little to no effort to maintain this is passive income. It is important to note that once you have your passive income coming in it does not mean that you will not have to maintain it and keep a close eye on it so the stream does not run dry.

First thing first, do you have the heart to make it happen?

Earning a passive income does not happen overnight, it takes time, hard work, discouragement, tears and long hours. One thing I have learnt over the years is – if it was easy everyone would be doing it. You just need to ask if yourself if you can handle the tough road ahead? Usually if the road is tough and difficult it greatly reduces the competition. For me, it is worth the time and effort!

What are some passive income streams?

Investing – Investing has been one of the leading ways for making passive income. The issue with investing is that you first have to have capital to invest. Investing can also be dangerous if you don’t know what you are doing. Dividend stock has been a popular investment tool for many people. They provide a recurring cash flow and when the dividend is reinvested it can compound to a healthy return over time.

Writing – writing articles and submitting them to places like HubPages, Squidoo, Quora, InfoBarrl and so on. There are several places to submit your articles and in due time they will reward you with some passive income. Again you will not get rich from these articles but they will help produce a few hundred dollars a month for a bunch of articles you have written and submitted.

Become a proofreader – Proofreading jobs are flexible and can supplement income. Proofreading can be fun and it does not have to be something that you do full time. There are all sorts of proofreading work out on the web, just take a little time and do some research and find a niche that you are comfortable working in.

Rental income – When we are talking about rental income this does not have to be purchasing property and being a landlord. Renting items that you such as a room in your home, at one time I rented my basement to a person that needed a place to live. He ended up paying us $300 a month to live in my basement for two years. Another time I had a three car garage and was only using two spaces so I rented the other space for $175 a month. That gave me another $2,100 a year income on a space that I did not need. If you can afford to have rental property this is a great source of passive income. My wife and I love having that extra source of income coming in every month, plus the great tax benefits from rental property are a nice perk.

Start a blog – One of the most aggressive and successful passive income generating tool is a blog. If you put in the time, do your research, and can write good articles that will get picked up by search engines you can generate a full time income that will carry on for years. Regardless of the niche you pick, if you have clear knowledge of SEO (search engine optimization), social medial marketing your blog could provide several streams of income.

Self-publish a book – This may not sound fun or interesting but in reality it can produce some nice passive income. Many people that are into blogging love the idea of selling ebooks online, through guest posting, and on their own blogs. The concept sounds hard but in reality it is fairly easy and can add an extra few hundred dollars a month to your revenue stream. Now we are not talking about writing a novel, we are talking about writing a 50 to 80 page ebook that can be sold on Amazon or iBooks.

Dropshipping business – This is a new concept for many people. Dropshipping is a business that you sell products from a supplier and have the item shipped to the customer without have to have any sort of inventory. This is a great passive income producer and believe it or not it has been in existence since 1999. Big name companies like Amazon and Sears use droppshipping and some estimates state that up to 33% of online sales through ecommerce use droppshipping.

Affiliate marketing – Last but not least is affiliate marketing for making a passive income. With affiliate marketing you earn commission for sales or leads that you have linked on your website or in your content of your blog. Another affiliate tool is display ads and banner ads that you receive a commission for every time someone clicks on the ad. This is a great way to produce incomes while you are on vacation or lying in bed sleeping.


These are just a few thoughts for passive income that you can put into action and start generating income for yourself. Like I mentioned in the beginning of this article, each of these idea’s take time and effort upfront in order to benefit from the rewards for a lifetime. The rewards will more than exceed the time and work that you put into any of these ideas.

Related Links:

Passive income streams

Want to be a millionaire

17 Passive income ideas


Posted by Tom in Business
Ideas To Help Pay Off Your Mortgage Early

Ideas To Help Pay Off Your Mortgage Early

Mortgage and automobile debt

For many people that are trying to homestead the one problem that many people have is debt. Two of the largest debt’s that families have hanging over their heads are mortgage debt and automobile financing. Today let’s take a look at ways to help pay off your mortgage and get this number one debt off your back. In future post we will talk about ways to pay off your auto loans and work on ways to be debt free.

Tip number one

Automate an extra payment to your principle along with your regular monthly mortgage payment. What I mean by this is when making your regular monthly mortgage payment add an extra $25 a month towards your mortgage principle. The reason I pick $25 a month is this is a nice low dollar amount that I am sure most people can find just by cutting back a few bad habits. If you set this up to automatically come out of your account and go straight to your principle you more than likely will not even notice the money being gone. After you are comfortable with $25 dollars a month then step out and increase it to $50 dollars a month. You will not believe how many years you will cut off your mortgage by paying the principle down monthly with just a few added dollars.

Tip number two

Many Americans are paid on a bi-weekly paycheck principle. If you were to set-up your mortgage payment to be paid bi-weekly instead of monthly. By paying half of your monthly mortgage payment ever two weeks you will shave off many years off the term of your mortgage. The reason for this is when you pay bi-weekly you will be making an additional monthly mortgage payment which will go directly towards your principle thus reducing the loan amount of the mortgage and saving you years of mortgage payments.

Tip number three

The whole idea of paying off your mortgage early is by cutting years off of the term of your loan and the easiest way to do this is reduce the principle. What my family and I have done is to deposit large chunks of money periodically towards the principle. Some ways that we have come up with these deposits is by thinking outside the box. A couple ways that we came up with the extra money to put towards the principle was to have a garage sale twice a year. Instead of taking the profits from the sale we took the money and put it towards the principle on the mortgage. Another suggestion that we did was to take our tax return and put this towards the principle. Whatever way you can find to take extra money and apply it towards the principle, do it! You will save thousands of dollars in interest by lowering the principle of your mortgage.

Tip number four

Most people have no clue about tip number four.  I love tip number four since we use credit cards that offers points for all our purchases. Disclaimer – we pay off the credit card at the end of the month so we do not add up debt.

Many people like us use our credit cards to pay for everything in order earn points for vacations or other frilly things. But there are some cards that you can have the points convert automatically to mortgage interest payments. So every time use this type of credit card you earn points which automatically get converted over to paying down your mortgage principle. This is a great tool that takes the guess work out of paying off your mortgage early.

Tip number five

Pretty much everybody can think of a way to adjust your lifestyle in order to save money to put towards your mortgage principle but tip number five is near and dear to my heart which is starting a side income. Making money on the side either by having a hobby or offering a service for people that you can do in your spare time is very rewarding and there is no limit how much money you can earn. There are many ways to earn extra income without taking on a second job that you may hate and regret. Just keep your eye on the goal and that is to pay off your mortgage and get out of debt in order to free up your income in order to be a happy homesteader.

Here are some resources for guidance on earning extra income


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Posted by Tom in Budgeting, Homestead