One of the ways that you can earn passive income is through dividend investing. Companies that pay dividends actually pay out a portion of their profits to shareholders. If you invest in a company that pays dividends, you receive a dividend monthly, quarterly, semi-annually or yearly (depending on how the company does things). These dividends are paid out to shareholders, and are different from earnings from selling or trading stock in the company.
Dividends can be incorporated into a long-term plan for yielding wealth, as well as provide regular income. Indeed, there are some investors that invest solely in dividend paying …read more

The Carnival of Personal Finance is up.

This is a guest post from Scott at Passive Dad.
Finding the perfect job that pays well can be difficult for recent college graduates and even seasoned veterans with 30 years of experience. If you are a writer, you might have a dream of one day writing a New York Times best selling novel. A new lawyer may have a dream of working for a prestigious law firm and one day become a partner. What if you are somewhere in the middle and want to spend more time with your family, while building passive income. Passive income, …read more

One of the things that many wealth building “coaches” tell you to do is to set up streams of “passive” income. But is there really such a thing? Over at Consumerism Commentary, Flexo points this out about passive income:
Simply: If you want to earn income, you have to work for it; that is, income is active. The IRS may call certain things “passive income,” but the term itself is a lie.
And really, I tend to agree. No matter what you do to set up your revenue stream, you still have to do work. Whether it’s a retirement account, rental …read more