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Passive Income: 10 Ways to Make Money While You Sleep

Passive Income: 10 Ways to Make Money While You Sleep

Passive income is money generated from investments, properties or side hustles. The goal is to achieve a steady flow of cash without the daily commitment of a full-time job.

Passive income is a cash stream that requires little or no daily effort to maintain, unlike active income, such as cash earned from working at a job or as a contractor.

You can create passive income through investing in certain financial products or by starting businesses that, after an initial investment, start to generate income without regular work. The taxes you’ll pay on passive income may vary depending on the source of the money, so make sure you keep careful records of your earnings.

Here are some of the most common ways that investors can earn passive income.

1. Dividend stocks 

One way to build an income stream is to invest in dividend stocks, which distribute part of the company’s earnings to investors on a regular basis, such as quarterly. The best ones increase their payout over time, helping grow future income.

Dividend stocks typically are less volatile than growth stocks and help diversify your portfolio. Investors can also choose to reinvest dividends.

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