Thursday, August 14, 2008

What is Passive Income and How Do I Get Started?

This is a guest post from Scott at The Passive Dad. Scott runs a great personal finance blog focused on his success with Passive Income and filled with great advice on how you can follow in his footsteps. 

If you would like to submit a guest post to Distilled Rose, please feel free to contact me!

What is Passive Income and How Do I Get Started?

You might already own a passive form of income and not even know it. Actually, you don't own it, the bank does. Banks earn income from your mortgage payments in the form of interest. If you are a landlord, you also are earning passive income on your apartment or rental house. Basically, passive income is derived from investments that require little to no work. They can require a basic investment, but the maintenance and time requirement are very minimal.
Getting to the point where you have several thousand dollars to invest in real estate may be a huge step for you.

How do you start out earning passive income then? Well, it's actually easier than you think. Start with something you love and are passionate about. If you don't have a passion, think of something you would love to do if you won the lotto. Got it? Great, now write it down. Is this something you would like to research and maybe tell others about? This is how your passion can become passive income. You have so many tools available that if you are truly passionate, the passive income will follow. Let's say you are passionate about raising horses. If you won the lotto tomorrow, let's say you would want to move to Kentucky and buy a large horse ranch. You would still need to research real estate, horses, land, breeding, etc right? Now is the time to write about it and teach others about your passion.

Utilize any of the following to start turning your passion into a passive income stream:

-Create a blog for free on blogger, typepad, or wordpress
-Write an ebook
-Create a Squidoo page

Want a really easy way to start earning passive income quickly? This will help you understand how passive income works and the importance of network marketing your ideas and passions. You are already shopping online and in stores, so you might as well earn some money for your efforts right? Join BigCrumbs and start earning passive income today!

I hope you have a passion that gets you excited and fired up. If you don't, use that lotto example and think of what you would do with your winnings. Think about it and start writing your way to passive income today.

For more of Scott's articles, check out The Passive Dad.

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