Passive Investor Tips is a weekly series hosted by full-time passive investor and Best Ever Show host, Travis Watts. In each bite-sized episode, Travis breaks down passive investor topics, simplifying the philosophy and mindset while providing tactical, valuable information on how to be a passive investor.

In this episode, Travis explains how passive income is the key to accumulating wealth. He provides examples of different types of passive investments you can make, highlights the top three reasons why someone might consider passive income, and uses a scenario to demonstrate how generating passive income can be truly life-changing.

Types of Passive Investments

Passive investing doesn’t just apply to real estate. There are many different options for earning passive income:

Owning a business without actively working in that business.
Owning a rental property that is professionally managed by someone other than you.
Purchasing a dividend-paying stock where you make the investment once and just sit back and collect the dividends.
Investing in real estate as a limited partner.
Publishing a book from which you receive royalties for years to come.
Making an oil and gas investment and making profits off of oil production.
Lending money to someone and charging interest.
Having a whole life insurance policy that is paying an annual dividend to you.