Passive Income – there’s nothing better than getting paid to do nothing.
[2:51] Stock and long term appreciation
You could earn 0.2% interest a year by leaving you money in a bank account.
Or, you could be making 5-10% in normal types of investments.
If you leave money in a bank account, you’re literally losing money because inflation is 1-2%
As an example, you can buy stock in Apple.
[4:33] The benefit of investing in dividend paying stocks
A dividend is something a company will pay to shareholders, as they earn profits they return
Dividends are taxed more favorably than normal gains
Index funds pay dividends very often
[6:28] Real Estate and Rental properties
This is Katie’s favorite, she rented out a room and made easy money that helped her pay her mortgage
There’s ways to do this without buying the house, invest in a REIT!
[8:53] Capital Gains- what are they and why they are great
Capital gains are gains made from holding capital assets for a longer period of time.
You only get taxed when you sell the asset, it’s not a direct income
[10:46] Loyalties and affiliations
This can be from owning a blog and referring someone, this is obviously not limited to blogs
You can earn money from formulations or if you produce something from intellectual property