Want to achieve financial freedom? Here are 15+ sources of passive income

One of my favorite financial mentors is Mr. T Harv Eker. He is the best-selling author of the Secrets of the Millionaire Mind

One of my favorite topics was when he discussed about winning the money game. 

To win the money game is to achieve Financial FreedomHe defined it as "living the lifestyle you desire without having to work or rely on somebody else for money."

In short, having enough passive income!
With enough passive income you can be financially free
With enough passive income you can be financially free
In my Cash Flow Upgrade ebook (click here to download for free), I mentioned that the ideal scenario is that our cash inflow should be greater than our cash outflow or in short:

Living below your means: Income > Expenses

However, if we want to be financially free, our passive income should be greater than our expenses, thus:

Financial freedom: Passive income > Expenses

The question now is, are we building a source of passive income?

To give us an idea, here are the two major the sources of passive income: 

1. Financial Instruments - money working for you.
2. Passive Business Income - passive business working for you.

Financial instruments are those that require only money as the investment (well, including financial education). 

These financial vehicles include but not limited to:
3. UITF's
4. Bonds
5. Time deposits 
6. Life insurance with cash value
7. Healthcare with cash value 

How can they become a source of passive income?

Example: Let's say we have a mutual fund (earning 10% average per year) with 1M in investment:
1,000,000 x 10% = 100,000 per year
100K / 12 months = ~8,000 per month passive income! 

Another example: Let's say we have a stock XYZ with 100,000 in shares and it give P0.2/share semi-annual in dividends, then: 
100,000 shares x 0.2 = 20,000
20,000 per semi-annual = 40,000 per year passive income! 

How about passive business income? 

Passive business income are businesses that can generate a steady cash flow that does not require or require minimal effort from your physical presence. They normally start as an active source of income but after some time, they can be converted into a source of passive income.  

Here are some examples:
8. Rental properties
9. Vending Machines
10. Royalty income from inventions, books, songs, etc.
11. Franchising (not being a franchisee but the franchisor) 
12. Residual income from network marketing or sales organization
14. Storage units
15. Parking lots
16. Systematizing any business
17. Membership or on-going subscription (club, gym, etc.)
18. and many many more...

Example: buying foreclosed properties, renovating them and offering it to people as a rental or rent-to-own property.

Another example: building a website where you can offer products and services online with automation. 

As you can see, most of these passive business sources start as an active income source. There is no total passive income, everything requires a lot of work. However, just make sure you can convert that into a passive source of income. 

When I heard all these, I can't believe that there are so many ways to earn passive income. 

Unfortunately, a lot of us are still stuck in the 8 to 5 pm JOB mentality. There's nothing wrong with that, but knowing all these potential sources, why not maximize our spare time and build a passive source of income on the side. 

At the end of the day, we remind ourselves that we work hard for our families. Why not build a source of passive income that sooner or later will give us financial and time freedom for our families. 


Did you love this article? Please comment below and share your biggest take-away. Do you also know other sources of passive income? 

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