Comments on: The 8 Levels Of Passive Income

By: Chris

Chris — Mon, 16 Mar 2009 21:04:40 +0000

Good info!

By: Anthony

Anthony — Mon, 17 Nov 2008 19:57:45 +0000

Well done. My only advice is that I would have separate Real Estate Income and Blogging income as they usually attract two very different types of individuals. It is easy to convince a professional (i.e. doctor or lawyer) of the merits of real estate investing, but you would be hard pressed to find one that would want to commit to what it takes to build a profitable blog.

By: investmentplayground.net

investmentplayground.net — Fri, 05 Sep 2008 05:12:08 +0000

Great post. If you want to get in the nitty gritty – there’s a ton more ways of passive income. I know a guy who works in finance by day and sells high quality scenic photos he took every now and then. He makes a few hundred dollars a month from this. Another way is by building websites that require less maintenance than blogging does but attracts plenty of advertising revenue. Keep digging!

By: Kyle

Kyle — Sun, 27 Jul 2008 02:03:50 +0000

Yes indeed that would increase the passive percentage, but if you do that you can’t claim a passive loss on your taxes, which most new real estate investors would probably be entitled to. I could be wrong: I’m no CPA.

By: Dividend Growth Investor

Dividend Growth Investor — Sat, 26 Jul 2008 22:15:05 +0000

I don’t know a lot about real estate investing, but if you buy a property and hire a property manager to deal with all the stuff related to the property, while you only collect the rent, does that increase the passive percentage?

By: Four Pillars

Four Pillars — Wed, 02 Jul 2008 01:18:04 +0000

Great post – I strongly disagree however with the passive percentage of the full time employment – as a full time employee my passive percentage is usually around 50%.

Mike

By: Pinyo

Pinyo — Wed, 25 Jun 2008 16:53:48 +0000

I may not agree with all the percentages, but I like how you break it down and think that you got it right for the most part. Good job!

Also, I would add company matching 401k contribution as a passive income component of your job.

By: passivefamilyincome

passivefamilyincome — Wed, 25 Jun 2008 16:33:19 +0000

I like your analysis a lot. Where did you come up with the percentages? What about CDs? What about tax liens? In my opinion a CD is the most passive form of income (at least for me) as you buy it once and wait. Not the best return but unlike a stock or mutual fund you don’t have to monitor it.

By: Kyle

Kyle — Tue, 10 Jun 2008 22:05:44 +0000

Hmm, I guess I would put P2P loans somewhere between 5 and 6. Probably closer to 5, actually. Money market funds would fit in at level 8. They have been known to break the buck occassionally, so I don’t think you could call it 100% passive.

By: Step3

Step3 — Tue, 10 Jun 2008 06:22:28 +0000

What about P2P loans? I think they would fall somewhere around level 6.