Let’s pretend you wanted to make some extra money. (It’s not too far of a stretch, is it?)

So you brainstorm a bit and decide to wash clothes for Extra Cash Each Month people.

You figure, since you have a washer and dryer, you could spend 2 or 3 hours after work, washing clothes for the neighbors. That would be an easy solution, right?

Well, in reality, you would soon find that it is just MORE hours in the day in exchange for some dollars. Basically it would be a part-time Earn Extra Cash Each Month job.

I am not going to tell you how to get a part time job in this article. You already know that is an option and probably would rather take another option if possible. By all means, you should NOT want to get an additional job.

The “wash clothes part-time” idea, could be replace with any other “side job”

They are all “active” income. You work, you get paid. If you do not put in the hours, well, then there is no pay. So how could you leverage that same idea and not be tied into exchanging your direct time for money.

You know what would be great? It would be great was if you instead set up a LAUNDROMAT. You know the building with all the coin operated laundry machines. This way while you were working your regular job and even while you were asleep at night, you would be MAKING MONEY.

How great is that?

You, of course, will still have to work. You’ll have to spend a few hours cleaning up the place, refilling soap machines and of course the horrible job of taking the MONEY OUT OF THE MACHINES! But the key is your “pay” is not directly related to or proportionate to your “hours” spent. This is “passive” income. Passive income is great. You don’t have to “do” something every time. You don’t even have to be present, thinking about it or even awake to earn income!

It’s like that with real estate also. If you can buy a property affordable enough, you can put a tenant in there and have them rent. Their rent pays the mortgage and some profit. This situation would bring in a constant cash flow to you.

Unlike the Laundromat, which depends on new customers to come in and create income, the income from a tenant comes automatically each month. This is not only “passive” income; it is also “passive residual” income. “Passive”, because you don’t actively work to get it, and “residual” because it comes in repeatedly, without your direct interaction.

You have seen and heard about this type of income all your life. You have probably contributed to it now and again if you ever used a telephone, vending machine, or have internet access. Think about it.