Passive Income Streams a.k.a. Making money while you sleep

Passive income is income that requires little to no effort to earn and maintain. It is called progressive passive income when the earner expends little effort to grow the income.

If you want passive income for life, you have to get to the point where your assets are earning for you (even while you’re sleeping). But first, you’ll have to put in one of three things: time, money, work, or all three.

What is Passive Income?

Passive income is money earned with minimal activity through a variety of ventures which require little daily effort or upkeep on the individual’s part.
The initial downtime you put into passive income can be as involved as starting a blog or as simple as investing $100 in a one of a trusted online stock trade platforms. You can earn passive income whether you’re an entrepreneur with a brilliant business plan, a talented artist, or just happen to have extra cash to invest.

There’s no magic trick that turns your time directly into money. Instead, you plant seeds so your money will grow, even when you’re sleeping or at the park walking your dog.

Examples of passive income include rental income and any business activities in which the earner does not materially participate. Some jurisdictions' taxing authorities, such as the Internal Revenue Service in the United States of America, distinguish passive income from other forms of income, such as earnings from regular or contractual employment, and may tax it differently. There are three main categories of income: active income, passive income and portfolio income.

Passive Activities

There are three kinds of passive activities:
  • Cash flows from property income, including profits from ownership of capital, rent from ownership of resources such as rental income, cash flows from property or any piece of real estate, and interest from owning financial assets.
  • Trade or business activities in which one does not materially participate during the year.
  • Royalties, which are payments made by one company (the licensee) to another company or person (the licensor) for the right to use the latter's intellectual property (book, music, video). However, the Internal Revenue Service only considers royalties passive income when they are "not derived in the ordinary course of a trade or business."

Passive (or side) Income Streams

  1. Robo-Investing
  2. Passive Real Estate
  3. High Dividend Stocks
  4. High-Yield Savings Account
  5. Rent Your Flat or Car
  6. Invest in a Business
  7. Pay Down Debt
  8. Invest in Index Funds
  9. Alternative Investments
  10. Ride share Driving
  11. Peer to Peer Lending
  12. Shop, Search & Play Online
  13. Online Course or Guide
  14. Outsource Your Business
  15. Cashback Credit Cards
  16. Advertise with Your Car
  17. Online Rebates
  18. Start a Blog
  19. Buy a Blog
  20. Affiliate a Blog

Passive income includes regular earnings from a source other than an employer or contractor. 

Passive income can come from two sources: rental property or a business in which one does not actively participate, such as being paid book royalties or stock dividends.