What would you do with an extra $1,000 a month?
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For most of us, this could be a real game-changer. After all, with this influx of extra cash, you could pay off financial debt, purchase a life insurance policy, or invest in your retirement. What’s more, you could finally take that dream vacation, make home repairs, or take a class to further your career. And, considering that fewer than 4 in 10 Americans could pay for a $1,000 emergency expense, you could build a substantial emergency fund.
But, unless you receive an inheritance or win the lottery, this $1,000 per month isn’t just going to appear out of the blue. You’re going to have to earn it. And, your first thought might mean picking up a second job.
There’s nothing wrong with this approach — especially if you’re in a financial crisis or have a short-term financial goal. On the flip side, this can pull you away from your family, friends, or hobbies. Plus, it can be exhausting in addition to your full-time job. In turn, that could actually put your main source of income in jeopardy if your performance or productivity plummets.
So, where can you realistically earn an extra grand each month? Through a passive income.
What is a passive income?
A passive income is when you make money without exerting much effort. In fact, this requires so little effort that many people describe a passive income as earning money while sleeping. Obviously, that doesn’t always literally happen. But hopefully, you have at least a basic understanding of what a passive income is.
There is, however, a passive income myth that must be debunked. Many people assume that earning a passive income is so easy that you only need a weekend to start. And, after that, you can just sit back and wait for the money to roll into your bank account.
In reality, there’s a lot of work to be done upfront. Even after the initial legwork, you’ll still have to maintain and update your passive income sources. It’s like taking care of your home or vehicle. Without properly taking care of these assets, they will quickly deteriorate and lose value.
If you do put in a little elbow grease and stay committed, then yes, a passive income can create an additional income stream. Eventually, this can help you achieve financial freedom, stability, and security. As a result, this reduces stress and anxiety.
In short, earning a passive income can significantly improve your life. And, if that sounds appealing to you, here are 11 passive ideas that can bring in an …….