[] can be a great way to help you generate extra cash flow, whether you’re running a side hustle or just trying to get a little extra dough each month. Passive income can help you earn more during the good times and tide you over if you suddenly become unemployed or even if you voluntarily take time away from work. is highly sought after and often misunderstood. Passive income streams require an upfront investment and a lot of nurturing in the beginning. After some time and hard work, these income streams start to build and are able to maintain themselves, bringing you consistent revenue without much effort on your part. Speaking from personal experience, adding passive income streams to your portfolio can help you increase your earnings and accelerate your financial goals in tremendous ways. For example, getting started with real estate with Fundraise for just $500 can accelerate your income and your other goals. For example, you can use passive income streams to help you get out of debt or achieve financial independence sooner. With passive income, you can have money coming in even as you pursue your primary job, or if you’re able to build up a solid stream of passive income, you might want to kick back a little. Either way, a passive income gives you extra security. And if you’re worried about being able to save enough of your earnings to meet your retirement goals, building wealth through passive income is a strategy that might appeal to you, too. What is passive income? Passive income refers to active income that requires minimal work to earn and maintain. Passive income sources include investing in mutual funds, selling products online, teaching online courses on sites like Udemy, or other tactics where the earner doesn’t have to participate. Passive income includes regular earnings from a source other than an employer or contractor. The Internal Revenue Service (IRS) says passive income can come from two sources: rental property or a business in which one does not actively participate, such as being paid book royalties or stock dividends. “Many people think that passive income is about getting something for nothing,” says financial coach and retired hedge fund manager Todd Tresidder. “It has a ‘get-rich-quick’ appeal… but in the end, it still involves work. You just give the work upfront.” In practice, you may do some or all of the work upfront, but passive income often involves some additional labor along the way, too. You may have to keep your product updated or your rental property well-maintained, in order to keep the passive dollars flowing. But if you’re committed to the strategy, it can be a great way to generate income and you’ll create some extra financial security for yourself along the way. ©

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