GOBankingRates works with many financial advertisers to showcase their products and services to our audiences.
These brands compensate us to advertise their products in ads across our site.
This compensation may impact how and where products appear on this site.
Commitment to Our Readers
GOBankingRates' editorial team is committed to bringing you unbiased reviews and information.
you might read more about oureditorial guidelinesand our products and servicesreview methodology.
What Is Passive Income?
Passive income is often described as any venture or business that makes you money while you sleep.
Then you could move on to another job or project.
For example, you put money into an index fund regularly and then keep it there until you retire.
It makes me laugh.
That [stuff] isnt passive.
Its a TON of hard work up front, and someday hopefully it becomes passive.
The most truly passive income you might make?
Its investing inthe stock market.
If you want to follow her example, its clear that its not one or the other.
You dont have to have a great job to invest for retirement, though.
If you start early enough, even $100 per month can add up.
Thats thanks to the power of time and compound interest.
However, the more you invest in the stock market, the more youre likely to get back.
Its possible to invest a lot of money into something that goes nowhere.
Investing in individual stocks can be quite risky, but putting money into adiversified index fundis much less so.
An index such as the S&P 500 has historically gone up over the long term.
As long as you are investing for the long term, an index fund is generally low risk.
More From GOBankingRates
Share This Article:
