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Initially you may only be making a small amount of money passively, and you might even want to re-invest that money so it compounds and grows faster. But with a few time, its possible to make enough passive income that you could quit your job or retire early.

Passive income can be a small divisive topic. In general, passive income is any money you earn without putting in much effort. The money will flow in without too much being demanded of you. In some scenarios it might be long-term recurring income, and in some other cases it could be short lived or inconsistent.

In some circumstances youll need to put in some effort up front, but then it wont require just as much effort in the future when youre making the money.

What qualifies as passive income is up for debate. Most lists that youll find online will include things such as blogging, writing e-books, or creating your own course. Im not including those thoughts in this post because, in my own opinion, they all require an excessive amount of effort to be considered as passive.

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Blogging will constantly require on-going work, either by yourself or from others that youre paying.  Selling ebooks or classes will require on-going customer service, and youll need a consistent traffic supply in order to continue to make sales. It is possible and there are people who've been in a position to do it , but they make up a small percentage of people who really set out to get it done.

Ive been blogging full-time for 10 years and Ive sold ebooks and courses in the past. Theyre great ways to make money, I just dont consider these to be more passive, in the majority of cases. .

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Nearly any business can be a source of passive income if youre paying other people to run the business. This is true with both online and traditional businesses. This opens up even more possibilities than what will be listed here.

Now lets have a look at a few of the greatest ways to make passive income. Some of these are investments which will need some money to start with. Others wont require any money to get started. In case you dont have the money to invest now, consider starting with the methods that dont require any money, and then utilize that money you earn to invest. .

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Your very first financial priority must be to build up an emergency fund that can cover all of your living expenses for a few months. But dont put this money is a checking or savings account at a local bank which pays you a horrible interest rate. You can open a high yield savings account or money market account with an online bank that will earn a lot better return for you.

My wife and I keep our emergency fund in a money market account with CIT Bank. At the moment (October 2018) CIT money market accounts are earning 1.85% APY and CIT savings accounts are earning 1.55% APY. Thats 22x the national average! Opening an account with CIT is fast and simple, and can be done online. .

Some companies consistently pay dividends for their shareholders. As a shareholder, you can re-invest the dividends to buy more shares of the inventory, or take the dividends in cash. Reinvesting will allow you to own more shares, which leads to greater dividends in the future (ideally).

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The companies that consistently pay dividends tend to be large companies with a long history of success. Because of this, these investments tend to be considered less risky than the stock market in general.

Dividend stocks can be a terrific investment whether or not you want to reinvest each of the dividends on hold on to this stock for a long time, or use the income produced through the dividends.

For much more detail on the subject read Investing in Dividend Stocks in Investopedia. To get a list of those shares, visit this collection out of Dividend.com and this collection from DividendValueBuilder.com.

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Peer-to-peer lending (or P2P) has become extremely popular in recent decades. Borrowers and lenders can be matched up through a site or marketplace. Instead of going to a bank, the debtor gets a loan from an investor.

In some cases the borrower may not have the ability to qualify for a loan via a traditional bank. And in many cases the debtor gets a better interest rate than they could this article receive from a bank. As an investor, you can earn a great return too.