Sources of Passive Income

bbb low-cost housing, tegnestuen vandkunstenThe other day, I discussed passive income and what it is. Today’s post will be all about different sources of passive income.

I would love for you all to comment below and tell me what you do for passive income, or what you would like to do. I’m sure everyone is interested, and I definitely am!

Rental Income

Many people get into the rental market as a form of passive income. Depending on how you want to define passive income, rental income may or may not be included as a passive choice. However, for the sake of this post, we will say that rental income is passive.

Right now, we rent a room to my sister. It is definitely a form of passive income for us, as she has not been a bother at all. The money she pays us ($325 per month) has been easy so far.

We are still unsure if we will rent out our current home or sell it when we buy our next house. We are kind of leaning towards selling it. Someone brought up a good point in my post on MSOC in that if we were looking to buy a rental home, we probably wouldn’t buy this one since we could probably make more money from a renting out a cheaper house.


If you’ve invented or created something in the past, you might be able to collect royalties from it. Maybe you invented something that everyone has to use, and you then collect royalties from it. Also, maybe you created an awesome song or took great pictures, and others wants to use them also.


Writing a book can be time-consuming in the beginning, but once you are done, the money could be considered passive income.

You could sell your books through online stores or have others sign up to be your affiliate and they can sell your books for you. I have been thinking about writing an ebook, but right now I am just too busy!


Making money by investing in dividend paying stocks is a source of passive income. You can generate income whenever a company pays dividends. This does not only have to be from publicly-traded stocks. You can also invest in closely-held entities which distribute cash. This might be a family company that you don’t work in, or maybe a good investment that you just happened to come across.

In the field that I work in, many, many of my clients make millions a year (each) from closely-held entities that they are just partners in (in which they do absolutely nothing).

What do you do for passive income? Any plans for it in the future?


Sources of Passive Income — 19 Comments

  1. All good resources. I would say that with investing, it’s important to look at any money you make, not just dividends. Dividends are very popular right now, but they are not the only source of investment income and they are not inherently better than any other source. Personally, I like a more balanced approach to investing than focusing exclusively on dividends.

  2. We currently have rental properties and I would say the more you get, the less passive it becomes. It’s nice when there are no maintenance or tenant issues and the money just rolls in each month. That is often not the case though.

  3. We are currently working on building a business that will provide more passive income in the future. Right now it’s a lot of work, but after things get rolling it should continue to provide income with minimal maintenance. I’d also like to invest in rental properties in the future as well, but I’m still in learning mode with this.

  4. These are great options. Personally, I wouldn’t consider a rental property as being passive, but I understand that it can be at times. My wife wrote a book and is trying to get it published currently, so hopefully we’ll get some of the passive income in the future.

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  6. These are excellent sources of passive income. Although royalties or books is a far-fetched idea right now, I’m just going to stick with dividends and investments. Nick’s iPhone app is a good idea too.

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  10. Thank you for the great post on passive income tips! I’ve been stabbing in the dark and now I feel like I have three things that I can change TODAY. This post moved me forward as a internet marketer who looking for way on how to earn online and I appreciate that.

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