How To Make Decent Passive Income: Rentals, Royalties, Investments And Real Estate

There is a way to make money without working at a job. The method is called having a passive income. Instead of going through the ordeal of setting up and launching an internet business, regular people can make money through real estate, investments, invention patents, sales commissions and publishing royalties.

For example, an insurance salesperson will receive an annual commission when their clients renew their insurance policy. Royalties can be earned by writers and other creative minds when their work
becomes popular. Popular authors such as Robert Ludlum receive royalty checks from the sales of his novels. Ludlum also receives a percentage of the box office earnings of motion pictures based on his
novels. The same can be said for other best selling authors such as Anne Rice and Stephen King who have had their books made into movies as well.

Along with book royalties, songwriters can earn residual income as well. For example, songwriters receive a share of the profits from album sales, plus they receive compensation from other artists who
record cover versions of the original songs.

Passive income can come from rental activities as well. Selling property, providing property in exchange for rent, or providing rental vehicles such as cars, trailers, and recreational vehicles like quad bikes is another method of earning passive income.

Money from investments is another method of receiving passive income. Aside from earning money in real estate transactions, money can be made in interests, dividends, or annuities from investments. This is called Portfolio Income. Examples include stocks, bonds, mutual funds, and certificates of deposit (CDs) bought from banks. Interest can also be made from a person's employment benefits such as company shares of stock.

The most basic example of residual income is child support payment. A divorced mother can receive a monthly child support or alimony payment from their former spouse to help raise her children until they reach adulthood.

If none of these ideas are beneficial means of making a passive income, Philip Humbert suggests making changes to improve your finances. Living off of a budget, quitting addictions such as substance abuse and shopping are key methods to decrease spending. Humbert also suggests saving between 5% and 20% of your income or cutting spending by 25%. Plus investments in stocks, real estate, or
other investments may be a smart method of earning a passive income.







Allen, Scott. "How to Earn More and Work Less." About Business and Finance. Copyright 2006. About, Inc. The New York Times Company. October 17, 2006.
http://entrepreneurs.about.com/od/gettingstarted /a/passiveincome.htm


"Passive Income, Portfolio Income." Yahoo! Finance. Copyright 2006. Yahoo! Inc. October 17, 2006. http://taxes.yahoo.com/glossary/p.html


"Passive Activity--Types of Income". users.ipfw.edu. October 17, 2006.
http://users.ipfw.edu/vetterw/passive-income-typ e.htm


"Is residual income (also known as passive income) a reality or myth?" Residual Income Opportunities. Copyright 2005. October 17, 2006. http://www.residualincomemanual.com/


Parton, David. "The Quest for Passive Income." WeirdBids.com. 2005. October 17, 2006.
http://www.weirdbids.com/knowledgebase/marketing _articles/The_Quest_for_Passiv.html


Kokin, Alex. "Who Can Earn Residual Income?" The Residual Income Group. Copyright 1999. Goodmove.com. October 17, 2006. http://www.goodmove.com/rig/who_can_earn_residual_ income.htm


Humbert, Philip. "Top 10 Steps to Extraordinary Personal Wealth." Copyright 2004. Philip E. Humbert Group, Inc. October 18, 2006. http://www.philiphumbert.com/Articles/10PersonalWe alth.html