Generating passive income is a dream for many people out there who are looking to create flexibility outside of a 9-5 job or anyone who just wants extra income outside of their day job.
By increasing your active/semi-active income (e.g., side-hustles), you can invest more in purely passive income (e.g., dividend-paying stock and bond ETFs). Also, before retirement, those dividends can be reinvested to generate even more dividends. It’s a virtuous circle. Thank you for this awesome article, Daniel.
I had a little laugh when the first point was "Start a side hustle" a.k.a. "get a 2nd job". I realize that you were going from least passive to most passive, but I don't think #1-3 should make any kind of passive list (with the exception being investing in a REIT). They would all require quite a bit of work either up front (content creation), or on-going (finding sellable products, product creation, property maintenance, tenant turnover, etc.).
As you mention in #4, the only truly passive income is boring, set it and forget it, investing.
If someone wants to get a second job to bring in more income then more power to them! I think that can be a great idea. But let's not kid ourselves by calling it passive income.
Title is misleading...should be 3 ways to increase your active income and one way to increase your passive income.
By increasing your active/semi-active income (e.g., side-hustles), you can invest more in purely passive income (e.g., dividend-paying stock and bond ETFs). Also, before retirement, those dividends can be reinvested to generate even more dividends. It’s a virtuous circle. Thank you for this awesome article, Daniel.
I had a little laugh when the first point was "Start a side hustle" a.k.a. "get a 2nd job". I realize that you were going from least passive to most passive, but I don't think #1-3 should make any kind of passive list (with the exception being investing in a REIT). They would all require quite a bit of work either up front (content creation), or on-going (finding sellable products, product creation, property maintenance, tenant turnover, etc.).
As you mention in #4, the only truly passive income is boring, set it and forget it, investing.
If someone wants to get a second job to bring in more income then more power to them! I think that can be a great idea. But let's not kid ourselves by calling it passive income.
Love the data found in #2 - Create Content. Good work 👍🏼