Passive income: 99+ proven ways to (not) make money without work

Passive income is money without work. To put it very simply, we are making money without spending money on that income. But is it real? The idyllic state when we lie on the beach with a cocktail in hand and the money goes to the account without having to go to work or do anything rather does not exist. Still, people are looking for quick tutorials on getting rich and creating money machines.

The concept of passive income is very distorted and there are many myths around the Internet. Most articles on the Internet will guide you to investment platforms and get passive investment income. The truth is that net passive income is very closely linked to investing.

Previously, passive income was understood as income from renting real estate and receiving dividends from shares. Today, however, there are many other ways to earn a passive income.

Some semi-passive income can be achieved in other ways, even without having to invest any money. However, such passive income does not come for free. It requires your work and patience in particular.

Passive income exists. But it is not money without work. Building a passive income requires your attention, money and time. The alternative is semi-passive income, which brings so-called smart money.

My way to passive income

Passive income was once a dream goal for me, to which I wanted to direct my business and activities on the Internet ( my whole story ). When I first heard about the possibility of running an e-shop, I wanted to start building an online store immediately, because I saw passive income in it. I knew I would have to work a lot in the beginning, but I believed that over time, everything would go automatically.

I couldn’t be further from the truth. With a deeper examination of online marketing and experimenting with online sales, I sobered up relatively quickly.

You can listen to a podcast where I share my 18 failed projects and what I have learned in the process .

I put aside my passive income for a while and set new business goals in my mind. Automate and set up processes to make everything work with my minimal effort and intervention. I started calling it semi-passive income. I write more about this in the next chapters, but I can tell you that it is still an active income.

Working for money is not the way to go

The money machine in online business rather does not exist, I realized. But I can’t end up working for money. Money has to work for me.

Work makes money, they told us. That’s true, but it’s not whole.

Money creates money. This is the second part of the truth, but no one tells us much.

I didn’t really realize it until I read the book Rich and Poor Dad by Robert Kiyosaki. Since then, I have been trying to be active not only in the entrepreneur quadrant, but also in the investor quadrant.

I realized that investors rather than entrepreneurs have a net passive income.

So I had to start investing . Stocks were my first choice and then the ball started to roll. Sometimes my activity worked, other times I made mistakes.

After 8 years of blogging, I decided to write an information article on passive income. I have tried to explain at a glance what passive income is, ways to earn or build such income, and at the same time I share ideas that relate to financial freedom and independence.

I am trying to follow a life direction that expresses very precisely the following quote:

We do not need to be rich, but we want to live a rich life.

After my own experience with online business and passive income generation, I also share views on how we can combine the work we love with creating semi-passive business income. Many also ask how to make the most money with a minimum of money, but I prefer to focus on how to make money smartly.

Pay attention to the guaranteed information that offers step-by-step instructions on how to earn a passive income from home. There is a lot of fraud and information in this area that is not true. They can deprive you not only of time but also of money. The headline of this article, 99+ Proven Ways to Make Money Without Work, has been a marketing attraction for you to get to this article 🙂

I would like to emphasize that there are no verified, guaranteed or guaranteed 100% advice, procedures or instructions. I can only offer a direction you can take. Choose the path that suits you best.

Guidance on how to earn or build a passive income cannot begin other than by defining a passive income and explaining what goal we want to go to.

What is passive income

Passive income is money that you earn without your additional work, effort, time, attention and physical presence.

1. Passive income puts money in your pocket.
2. Passive income does not require your time.
3. Passive income does not require your work.
4. Passive income does not require your attention.
5. Passive income makes money around the clock.

There is a constant debate about whether there is a real net passive income at all, when nothing needs to be done and money will come to us. Is there a perpetual mobile for money? 

The definition of passive income is not stable and there are a number of inconsistencies and ambiguities surrounding this concept. Basically, many sources agree that passive income refers to income that you earn without having to repeatedly make some extra effort or work.

• Passive income is money that we did not make directly and obtained de facto from some of our previous activities.
• Passive income is an income where we do not have to work and still make money.
• Passive money is what you get while you sleep.
• Money that earns itself is passive income.
• Passive income is often perceived as regular income, but it is not necessary. Passive income is often paid monthly, sometimes quarterly or even annually. The amount is usually not the same for each payout.

The most common ways of passive income are real estate rental income, dividend income from shares or interest on P2P loans.

Passive income is not e-shop sales, influencer marketing, yubing or blogging. Although the income may not seem to be directly dependent on the activity, there is a close link and I explain in more detail below.

You will always have to do “something” to get a passive income. Don’t think that you will make up passive income and start earning the next day.

Active reception

What is the difference between active income and passive income? Active income is one in which we earn money directly for hours worked or tasks worked. We are rewarded for our time and effort. Usually we have a set hourly rate, or a rate for the order.

All employees who work a certain number of hours have an active income and receive a salary accordingly (salary or wage).

Freelancers, ie freelance people who invoice clients, also have an active income. He agrees on either an hourly rate or a certain financial amount for the contract.

We can increase active income in two ways:

• We will increase the hourly rate
• We will increase the number of hours worked

Raising the hourly rate is a good way to grow financially in terms of income. The better we become, the better the experts, the more irreplaceable or the more we take responsibility, the higher our hourly rate increases. Another possibility of an increase in the hourly rate is to enter a foreign market, when we will start earning dollars or euros. However, the hourly rate cannot be increased indefinitely.

The number of hours worked can only be increased to certain levels.

Active income is therefore quite limited. In other words, the money we are able to earn through active income is limited. Above all, however, it is necessary to realize that increasing active income usually requires our longer or harder work.

Why look for a passive income

Warren Buffett says, “If you don’t find a way to make money while you sleep, you will work until your death.” (If you don’t find a way to make money while you sleep, you will work until you die.)

1) We do not work to death. That, to put it mildly, also means that we will not have to work until retirement. We should work smart, which means not exchanging time for money.

2) Increase in financial income. The day is only 24 hours long and we cannot increase our income just by working more and longer. We can become more experts or even work for foreign clients, but even that is limiting.

3) A job failure can happen to us suddenly, whether as part of a dismissal from the employer or our need to do something else.

4) An accident or illness will exclude us from active money making and we will only have to rely on how much we have saved. In the event of a long outage, there is a risk that we will exhaust all our savings. Even life insurance does not have to cover all cases.

5) Family and children  represent increased time and attention. It is better to be financially secure when we want to expand our family.

6) Old age and pension belong inseparably to the next stage, which is a little closer every day. Although the state offers an official pension benefit program, they are not very generous financially. To maintain the standard of living, it is advisable to have your own extra income.

Financial literacy

If we want to gain more freedom and enjoy life (not survive), then we must run away from active income and start building passive income. If your income depends only on pay from your employer or paid invoices from clients you work for, you are financially poor.

Financial literacy teaches us to think about money other than just go to work, make money, spend money and repeat the process.

Advantages of passive income

• You will gain financial income stability.
• Less stress.
• You will have an income even if you lose your job / jobs / clients.
• You don’t have to work until retirement age.
• Savings and extra income for old age and retirement.
• You determine your own rhythm of life.
• More holidays whenever you want, not just 4 weeks a year.
• More free time.

Disadvantages and risks

• It requires advanced financial literacy.
• You don’t learn in a week, it requires know-how in a certain area.
• It takes your time. The less money you invest, the more time you have to put in.
• The first attempt is usually not successful.
• Passive income grows slowly, requiring patience.
• Obstacles demotivate individuals who often give up (eg due to short-term higher active income).
• There are many scams on the internet about passive income or extra income.