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What You Need To Know About Generating Passive Income

A high level guide to what exactly passive income is and how to get started

The biggest myth to passive income is that you can just set up a business and watch the money roll in.? This couldn?t be further from the truth.? Setting up a passive income stream takes hard work and dedication.? If you want to earn dividends from companies you invest you need a large sum of money to invest in those companies.? If you want an income stream from a business you need to put the time and effort in up front to set up that business.

See what it takes to earn a passive income stream.

Passive income is when you make money but there is not a TON of work to do in the future?in order to continually?earn more?money. You, of course, need to do something in the beginning in order to set yourself up for the income, but after most of the leg work is done,?income continually comes in without much effort from you. There might be a little maintenance here and there after you set it up, but overall the passive income stream?should continue to operate on its own.

There are a couple of types of passive income.? You can create a content product and sell it though a website using Shopify.? ?You can invest in bonds and stocks that will pay you coupon and dividends.? You can buy a rental real estate property to rent to tenants or rent out using AirBNB.? If you are writer you can get royalties from selling an ebook on Amazon.? There are a ton of ways to set up a passive income stream but you are going to have to do the work.

Learn about the different types of passive income.

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About Shaun Archer Tatum Shaun works in corporate finance in New York City. He has done financial consulting for several start-ups and has worked at several Fortune 500 companies. He has contributed several finance/investing articles on Seeking Alpha which have been published on Yahoo! Finance.

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