==== ====Earning Passive Income Is Fabulous ... if I can you can. VISIT THE WEBSITE FOR GREATMONEY MAKING IDEASwww.incomeunlimited.biz==== ====Many articles cover different ways of saving money as well as adopting a proper attitude towardssaving money and managing your personal finances, without really venturing into the realm ofearning money. Today I want to go over three different types of income (active, passive, and semi-passive), how they all work, and how you can utilize each type to continually increase your networth.What is Active IncomeActive income is the main source of income for the vast majority of people. It requires a directexchange of time for money. The more you work, the more money you will make.An example of active income would be the typical salaried worker. They work 40 hours a week inexchange for a given amount of money.Pros of Active IncomeYou know exactly what you will get in return for your timeThe time you spend working directly corresponds with how much you will makeYou see results immediatelyCons of Active IncomeYou have less free time for yourselfThe time you spend working directly corresponds to how much you will makeIn order to increase your active income you have to do one of two things.Work moreGet a promotion or a raiseFor the person whose goal is financial freedom, working more is not an appealing option, andmost professions are limited by the market when it comes to increases in salary. This makesactive income a great candidate for secure and consistent cash flow which can be supplementedwith other types of income.What is Passive Income
Many people see passive income as the Holy Grail to gaining wealth. It initially takes work to getstarted, but will continue making you money even when you arent working. This is what makes itso appealing.An example is selling stock photography or graphics online. Once you do the work to get the filesposted, you can continue earning money without doing a thing.One of the most common problems people have with this type of income is that they will only getto a certain point of earning a small amount of money, only to lose interest and pursue somethingelse. The trick to passive income is to try a few things out and see what works, then pour your timeinto a select group of ideas to build them up. Long term cultivation can yield a large amount ofessentially work-free money.Pros of Passive IncomeYou make money while you sleepIt frees up your time to pursue other money making venturesIt can provide a long lasting source of incomeCons of Passive IncomeYou usually dont make a lot of money all at onceIt can sometimes take a long term commitmentIt may eventually stop earning you moneyBy building up multiple income streams, you can focus your efforts on improving the ones thatwork best, while eliminating ones with a low return. As you continue to increase your passiveincome, you will eventually reach the point where you can pay for all of your expenses without theneed for another job. This is part of my main goal and can be attained more easily than you mightthink. Notice I said "attained more easily" and not just "easily attained". Passive income still takeshard work and dedication, but the long term results are superior to active income.What is Semi-Passive IncomeSemi-passive income is a combination of both active and passive income. Semi-passive incomewill continue to make money when you arent working, but it does require a certain degree ofmaintenance or management.Owning your own company is an example of semi-passive income. Your business will continue toearn money without your presence, but usually requires you to check in and make managementdecisions along the way. The more you put into it, the greater the potential for earning becomes.Another quick example of semi-passive income would be acting as a landlord. You make moneyevery month from the rent payments, but you still have to check in frequently to ensure everythingis as it should be, as well as taking care of any potential problems with the property or tenants. It ispartially a long term investment as well because you earn money monthly from it and expect it toappreciate in value over the years.
Pros of Semi-Passive IncomeIf you own a business, there is large potential for growth because your employees are activelygrowing your companyIt frees up time for other endeavorsYou can sell a company or house at any timeCons of Semi-Passive IncomeIt requires more responsibility than standard passive incomeThere is a certain degree of management and maintenance that is requiredSemi-passive income is so tantalizing because it can earn you money without work, but if youspend some extra time with it, you will begin to see greater returns.The Trick to Earning More MoneyFind ways to make money using all three types of income and then continually analyze yourprogress and focus only on the highest performers.Oftentimes, having an active income job and pursuing different passive income ideas is the bestway to go, and is what many people strive for. Multiple sources of income protect you from theunexpected and also hold the potential to maximizing your earning ability. Once you find a way toearn enough passive income, you will have the choice of working only when and if you want to.How To Start Earning Multiple Types Of IncomeMost people already have monthly expenses and work an 8-5 job, so they feel that the only wayout of that job is to get rid of everything they have. The truth is that while it is a good idea to startover from scratch if you have the means to, you dont have to eliminate your monthly expenses toget ahead.The old adage, "Slow and steady wins the race", portrays the attitude that is required when youbegin considering different income options. Find one idea and work with it. A lot of times, we thinkof one idea but dont see an immediate return so we move on to something else. This is the onedeadly sin of passive income. You have to practice patience before you will begin to see progress.http://www.TheBestMoneyBlog.comArticle Source:http://EzineArticles.com/?expert=Johan_Sams
==== ====Earning Passive Income Is Fabulous ... if I can you can. VISIT THE WEBSITE FOR GREATMONEY MAKING IDEASwww.incomeunlimited.biz==== ====