Should You be Making Passive Income?

Warren Buffett was onto something when he once said  “If you don’t find a way to make money while you sleep, you will work until you die.” Today, over half of self-made millionaires have at least three streams of passive income. Why? Because having even just one source of passive income maximizes your revenue without directly increasing your workload.

Since the money you make isn’t directly tied to the hours you work, passive income streams allow you to hold a regular full-time job or free up your time for other things, while still enjoying income. Generally, the work is front loaded and the money comes steadily after.

So how do you set up a passive income stream that’s right for you? There are three types: business, which includes self-employed ventures and silent partnerships, real estate, which includes rental properties and notes, and equities, which includes dividend-paying stocks and mutual funds. Some streams require money to get started while others require time.

This infographic from Lexington Law will help you decide which passive income stream works for you, putting you on your way to financial independence.