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Step 1: Understand the Types of Passive Income

There are two broad categories of passive income:

1. Capital-Based Passive Income

This requires money upfront.
Examples:

• Stocks & dividends
• Real estate
• Bonds
• REITs

If you don’t have money yet, ignore this for now.

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2. Skill & Effort-Based Passive Income (Best for Beginners)

This requires time, learning, and consistency, not money.

Examples:

• Blogging
• YouTube
• Affiliate marketing
• Digital products
• Online courses
• Print-on-demand
• Automation-based freelancing

This post focuses on this second category.

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