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Passive Income: What is is, and how to create it

Generating passive income is one of the best ways to build wealth without eating up your time. 

This financial trend has helped many people increase their financial freedom, especially during the COVID-19 pandemic when we all have had more time at home to consider long-term goals. 

So, what is passive income and how could it impact your life? Here are some of the ins and outs of generating income in a hands-off fashion. 


Passive income is money earned through any venture that requires little daily effort or upkeep. Some people have likened it to earning money in your sleep. 

Good examples of passive income include having rental property, managing a blog, teaching online courses, writing books and launching programs. 


Passive income is not related to your job, investing, or any side hustles you may have. The whole point of passive income is to supplement those cashflow sources. Any activity that requires you to put in daily work or maintenance, such as a nine-to-five job, counts as active income. 


If you think you can put in the work, and you can use the supplemental income, then you should consider starting your passive income stream. However, remember that this venture will take time to yield results. It’s not an overnight, get-rich-quick scheme. This is a way to build wealth sustainably. 

First, consider your skills, talents and passions, and ask yourself the following questions: 

  • Is there a market for this? If so, what is my target audience? 
  • What can I offer people? 
  • What problem am I solving? 
  • Have other people done this before? If so, research their work and modify your idea to make it your own. 
  • How will I sell this? 

Next, monitor your stream of income by setting realistic goals and analyzing where you could improve your product to see a greater return. Every month, sit down and evaluate what you spent against what you made. A successful passive income venture will look different to everyone, so it’s important to define what success will look like for you. There is no universal average for how much passive income you can make because everyone’s product will perform differently. What matters is that it feels worth it to you and that you see satisfying numbers. 

However, you can always strive to make more by continuing your education so you can improve what you’re selling. Plenty of available resources online and elsewhere make it easy to learn more about marketing a product and your subject of interest so you can be as successful as possible in your venture. 

Passive income requires work initially, but if you stick with it, you can set yourself up for a successful supplemental income stream that can turn into dream vacations, home upgrades and much more. 

Janera Harvey is a money coach, certified credit counselor and owner of The Credit Journey LLC. Reach her at 

Written by Janera Harvey

Janera Harvey is a money coach, certified credit counselor and owner of The Credit Journey LLC. Reach her at

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