make passive income to retire early

How to Make Passive Income on the Internet and Retire Early

In the words of Warren Buffet, “If you don’t find a way to make money while you sleep, you will work until you die.” These words should forever dwell in your consciousness, and become a lamp to your feet that guides your path into creating passive sources of income.

In actuality, retiring early is a goal every worker should strive at obtaining because so much is missed out of life when you are stuck to a rigorous job routine. Working actively is best done in one’s youthful age, but as you slowly go under the weather and get frailer in health you should be able to confidently retire without fear of unfavorable financial repercussions.

Financial security begets early retirement, and financial security cannot be achieved without creating streams of passive income that rolls cash into your bank account even when you are asleep or spending time with family.

make passive income to retire early

Total reliance on your active job for the inflow of cash into your bank account is sentencing yourself into life with scarce hope of retiring early. Therefore, it is of utmost importance that you create over the years passive streams of income.

This digital age has presented enormous opportunities as regards earning via the Internet. This article will nurture you on how to make passive income on the internet by enlightening you on some of the best passive income ideas. 

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Best Passive Income Ideas on How to Make  Passive Income on the Internet.

1. Investing

Investing wisely is very resourceful, it is one of the best passive income ideas. Investing involves the placement of capital with the intention of yielding profit or income. This is a great way to boost your financial security to the level you will be comfortable enough to retire timely.

There are various ways to invest and make passive income. Some of such ways are;

  • Index funds
  • Peer-to-Peer Lending

Index funds

In Index funds, you invest in the stock market without having to actively shoulder responsibilities. 

In index funds, each fund is based on an index, and there are index funds for every market sector, such as oil, mining, and every other sector. As an investor, you simply opt for a fund that aligns with your most preferred index then invest your capital.

A notable aspect of Index funds is that when you invest in a particular Index fund, for instance, you invested in an Index fund based on banking you are automatically invested in the general market. This saves you the trouble of having to choose between investments and strategizing on when to buy or sell them.

Accordingly, after investing in an Index, you can go about your daily activities and still earn from your investment. This is an easy passive income idea, with which you can groom financial security and independence. 

Peer-to-Peer Lending

Though young compared to some other forms of investments Peer-to-Peer Lending has grown to be quite resourceful. It entails lending money to a startup business or individuals. This is one way to make passive income on the internet because both the lender and borrower are connected through an online platform, such as Lending Club, Upstart, etc.

In Peer-to-Peer Lending, when you invest as an investor you are entitled to some returns, without having to work. Requirements for participation for this investment is less compared to other forms of investments since both accredited and non-accredited investors can invest. It also does not require a bulky amount of money before you can become an investor, and the interest rate is sometimes more than 10%

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2. Write an E-book.

Writing an e-book is a good way to make passive income on the internet. Unlike investing passively, writing an e-book entails work and effort from your end, however, it is a passive income because even after the work is completed you will continue to generate income from your e-book.

At the initial stage, work is required to write the book as well as promote it. You can write an e-book on a topic of your choice but it is more appealing when the content of your e-book is aimed at solving a problem or impacting the lives of your readers.

You can self-publish and sell your e-book at sites such as Amazon. Though generating sales at the earliest stage without being popular can be tasking, nevertheless, with the right promotion through digital marketing and that of your hosting site, you can generate passive income for a long period of time through your e-book. 


This was just a short list of ways you can make passive income on the internet and retire early. As you may expect, there are many more opportunities available. 

Our Free Passive Income Guide is a great additional resource to explore next. We also have more articles on the subject here

Do you know any additional ideas for making Passive Income on the Internet or have additional questions? If so, share them below. We’d love to hear from you.

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