Everyone likes the concept of money rolling in when they are sleeping or relaxing on the beach.
That is why passive income appeals to so many people. You can read articles about a thousand and one ways of generating passive income.
The problem with most people is that they fail to realize passive income requires active effort.
If you do not put in the effort to produce passive income, there will be no passive income at all.
One of the best sources of passive income is the rental income from renting out apartments and houses.
What does active effort involve? For one thing, you need to buy the apartments and houses. If you refuse to go house hunting, and get the necessary paperwork done, you would have no house for producing rental income.
After you buy the house, you need to renovate the place. Even a simple renovation such as painting the walls requires effort. You need to do the painting or get a professional to do the job for you.
You have to source for tenants. You need to do the background check on the potential tenants.
It is after you have done all the work, then you can enjoy the passive income.
What about other passive income sources?
Making money online, especially from article writing, is another passive income source.
If you want to make money online, and earn from your articles, you must have a bulk of articles online.
You cannot expect 10 articles to produce much money. You do not even expect 1000 articles to produce enough passive income to pay for all your bills.
You need at least 3000 articles. Once you reach the goal of writing 3000 articles, you will find that is not enough too.
Some writers in Ezinearticles have more than 20000 articles. They are still writing articles.
Can you imagine the effort of writing 20000 articles for passive income? That is the active effort.
That is why passive income does not mean easy money. You should be deceived by the usage of the word "passive". You have to think of the amount of effort put into the work to produce a steady stream of passive income.
What are the common sources of passive income?
1. saving account
Do you think no effort is required to earn interest on your savings? You need to have enough money to save. That means you have to work for the money. That is the active effort required.
2. rental income
Blogging is hard work. You have to set up a blog, and continually get incoming links and fresh content for your blog.
It is better to write all the blog posts yourself. If you have a few blogs, you can hire ghostwriters to do the work for you.
4. affiliate marketing
Affiliate marketing can help you to get rich. Many super affiliate marketers put in 12 to 14 hours of work every day for the first year.
They need to source for customers from all available sources, including social networking websites, social bookmarking websites, forums, friends, relatives, readers from search engines, and discussion forums.
5. stock market investment
Stock market investment is a double edged sword. You can get rich through stock market investment. You can also get poor through stock market investment.
You need to acquire knowledge, especially the fundamental analysis and technical analysis of stock selection.
You need to monitor the performance of the stock market and the share price of the companies you want to buy.
Bond yields dividend and is a low risk investment. The difficulty is in saving enough money to buy enough bonds for passive income.
What are your sources of passive income? Are you willing to put in the active effort to build up a steady stream of passive income?
You can try article writing if you have no money to buy apartments, invest in bond and stock markets. You can also try affiliate marketing since that does not require upfront capital.
The only thing you need is your time, and determination to make money.