I think it's much better to approach these business models as
active. So you can delete the word passive out of your vocabulary. The
simplest way if you want to do it, it's the most effective passive income stream ever
is dividends from index funds or stocks. You buy a piece of
real estate and rent comes into your bank account from the tenant. If you
get a property manager to look after it, it's fairly passive. Network marketing,
I've been able to build passive income out of this. It starts off as
active income, you actively have to build it, it's not that easy. Podcast, this
is also semi-passive because... I'm Lloyd James Ross, seven-figure
investor and entrepreneur, and I've helped thousands of business owners and
professionals turn financial stress into success. If
you're stuck in old money habits, overwhelmed by investing, or unsure where
to start, This is for you. I'll give you the mindset and
strategies to take control, grow your wealth and achieve financial
freedom. It's time to make your money work for you. But
this is 10 passive income streams starting from number one, the easiest,
the most effective passive income stream ever. is dividends from
index funds or stocks. This is absolutely passive. You can buy an
index fund and you can literally be paid consistently from
dividends from the fund without lifting a finger. It is the most passive
income you will ever get in your life. How do I know? Because I
have it and it takes the least amount of effort from me. It's the easiest to start
and the easiest to manage. So it gets double green light. That's the best. Second,
real estate. You buy a piece of real estate and rent comes into your bank account
from the tenant, and if you get a property manager to look after it, it's fairly passive.
But it doesn't mean you do nothing, because you still have to do some paperwork with
the property manager to actually manage that, get your tax savings, talk
to your accountants, there's stuff to do. It's not totally passive, but of course it's
hard to get into because real estate is expensive. So hard to start, Pretty
easy to manage. Number three, bonds. Up there with stocks is arguably
the greatest and simplest passive income available to you. This would also
include a term deposit, because it's kind of like a bond. Bonds are where you lend money,
and you get an interest rate back. So if you buy a 30-year bond, a
30-year coupon rate will come to you. Twice a year, you'll get paid passive income.
Problem with that is it's fully taxable, and you have to understand how to buy bonds. You
can easily buy bonds. Go to Google. Type in how to buy treasury bonds. You better go
to the treasury department and buy them directly. Pretty straightforward. Pretty easy. Easy
to start. Easy to manage. All right? It's up there with stocks. Next passive income
stream, a book. Book will give you passive income from royalties, particularly
if it's published. If it's self-published, you can get people buying it on
Amazon. It's actually, now with AI, quite easy to write a
book, and it's also quite easy to manage once you upload it to Kindle KDP Publishing.
So it's actually a really simple way to get passive income. The only problem with
it is, I don't know how much you'll make, because you have a lot of people buying books to
make it, so it's a lot harder in terms of how much money you can
make. But it depends on the quality of the book. Just quickly, if you're ready to take control of
your finances but feel stuck, on where to start, I have a
solution. My book, Money Buys Happiness simplifies investing
and wealth building with practical steps to help you achieve financial peace.
Get your copy via the link in the show notes and let's get your money working for
you. Now back to the episode. Next one, network marketing. I've
been able to build passive income out of this. It starts off as active
income. You actively have to build it. It's not that easy. Then you have to get
residual recurring income from it, and eventually you can get passive income.
If we didn't touch it now, we'd still get income coming to us, so it's very passive,
but it doesn't start out that way. Very easy to start, harder to
build to the point where you can actually take your foot off it. YouTube,
if this is not fully passive, this is semi-passive. How does it
become semi-passive? Because YouTube is dictated by content. You
have to actively do it. So like, actually doing stuff, building content. That's
not automatic, so it's not fully passive. You can use AI to do that,
but you still have to ideate the videos, do the AI, and upload it,
so it's actually not fully passive. Although, when you start getting paid from YouTube,
it's pretty good, but it will always be active from you. Number
seven, courses. People think they can just buy, build a course, Print
money on demand. No, it's not fully passive because you have
to send ad traffic to it. So you have to do content on social media or
somewhere else to find traffic to it, unless you can get
the traffic for free from somewhere like Google search. If you're in the highest ranks and
people are going there automatically, then the SEO is pretty passive,
which means you are developing passive income. But to get organic traffic at
that scale onto your course would take a monumental effort, but still possible.
Number eight, podcast. This is also semi-passive because
you have to always create content to actually put onto your podcast to
actually get the results from it. If you put your podcast onto some sort
of, I think Apple podcast has now like paid subscription
services, you can get paid for your episodes. But again, you have to ideate
and create the content that's so valuable that people continue to pay. even
when you don't work anymore. And I don't think that's possible, because they will be looking for the next thing. Otherwise,
I'll cancel the subscription. So that's semi. Number nine, laundromat. How
do I know this one? Because I own one. And with a laundromat, it's semi-passive.
Why? Because you need someone to clean it, you need someone to manage it. I'm gonna get a great business partnership
with that, and my business partner manages it, runs it, and we're, you know, and
so there's, it's not all passive. You have to look after it. It's an asset, okay?
And then of course, number 10, I've got a buddy of mine who does this. He's got about 20, 30, 40 vending
machines. It's not fully passive. It is
semi-passive, because once the vending machine is stocked and looked after, it
will produce income to you, but you have to buy it, look after it, maintain it,
and stock it, and that is not passive, unless you find a staff member to
do it for you. It takes a lot of the heat out of it, but again, you have to
manage the person to manage the thing. So the last half
of these are semi-passive, but the first few I mentioned can
be fully passive. I think it's much better to approach these
business models as active. So if you can delete the
word passive out of your vocabulary, the simplest way if you want to do it is to
buy an index fund, get dividend income. That's definitely passive and
it's the easiest and simplest. It's easy to start, easy to
manage. That is the absolute most purest form of passive income.
The rest of them, you'll do a lot better if you approach them with
an active mentality and an active effort. Okay,
so active effort at the start, passive later. Go and attack those.
There's the 10. I think we did under 10 minutes. Which one are you building
now? Which one are you most interested in? Leave it in the comments below so I can come and
have a chat with you about it. And of course, hit the subscribe button and
go and check out the next video. Thanks for listening to Money Grows
on Trees. If you enjoyed the episode, leave a five-star review on Apple
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YouTube so you never miss an episode. And if you're serious about building wealth,
make sure to check out the links in the show notes and follow me on all
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