Sources of Passive Income

Nowadays, many people are already looking for ways to earn extra money. Aside from their active income they are also thinking of having a passive income. A passive income is a type of income earned from investment. While active income is earned from the result of our labour. It’s source are salaries, commissions, and service fees.

Now what are the sources for passive income? Some popular sources are: dividends, interest earned, rent, sales, land, equipment, and money itself.

Dividend

Dividend is earned from the net profit of a company. It is more common in stock market. Dividend can be cash or stock. It is a cash dividend when the profit is distributed in cash through bank checks. And it is a stock dividend when it is distributed in the form of shares or stock. But not all companies give consistent dividends. It is important to remember that stock selection determines your future income.

Interest earned

Interest earned from money deposited in a bank. We can consider our savings to be one a source of passive income. This happens only when the interest rate is high and our deposit is in significant amount. Time deposit or bank bonds are examples of passive incomes. To get an attractive income through the banks, we must choose the right bank and deposit at the right time when the interest rate is high.

Rent and Lease

If you have an extra house and lot or a unit of apartment, you can have it rented or leased. It is proven to give reliable source of income.

Sales

Buy-and-sell business can be some sources of income depending on the items or goods you trade. Buy and sell of cars, house and lots, stocks, and bonds are definitely great sources of passive income.

Land

Land is a great investment and the best source of passive income.

Equipment

Heavy equipment used in construction can be rented out to contractors and developers. Another popular equipment for rent nowadays is the printing press. It can be a business and at the same time an investment.

There are really many sources of income, just be sure to make wise decisions.