Most people believe that money is created through active income. They rarely think about passive income or even residual income as a source to generate wealth or financial freedom.
When exploring the means of creating wealth without using active income, we come across two types. There is passive income, and there is residual income. They both act very similarly, but as we talk about finance, it is better to think of the residual income.
Residual income is an income that can be passive. The calculation determines how much profit or excess income is available after all expenses are paid off.
Airbnb has become huge over the last many years. If you have a free room in your house, you can rent that out. It is an excellent opportunity to make extra money without having much work to put in it.
Investing in the stock market is one of the simplest ways to create a passive income stream. Have you heard of index funds? They are one of the simplest ways to build wealth with your money in the stock market.
REITs are real estate investment trusts. These are companies that will buy up real estate and use your money to help them do it. You will get dividends from the residual income that the company makes off of its property.
Starting a blog can be challenging work that takes time and money to make things happen. If you want to capitalize on something with a high ROI, creating a blog can be a way you can do it.
If you enjoy talking with people or sharing ideas, you can start a podcast. Many podcasts pop up all over the place, but it is a newer field compared to the blogging world and offers many opportunities.