Creating passive income is all about careful strategizing and making the most of your time and money. Whether you're looking for additional security during retirement or plan to retire early, developing multiple passive income streams can supplement or replace your existing sources of income and transform the way you spend your time.

Straightforward Options

Chances are, you're already familiar with several classic passive income techniques. One is building a diversified mix of funds with reinvested gains, and another is owning a portfolio of real estate properties for sale or rent. Since no passive income strategy is truly hands-off, make time to review your portfolios regularly to avoid risk drift and check on real estate to stay apprised of wear and tear.

Pursuing Your Passions

If you're brimming with knowledge and experience and enjoy writing, consider self-publishing as a way to set yourself up for continuous income. From affiliate marketing on a niche topic blog to royalties from a series of eBooks on Amazon, you'd be surprised at the moneymaking opportunities available for specialists willing to put in some initial effort.

If you have a passion for photography and years' worth of photos saved, you can also try listing your images for sale on one of the many photo sites that make it easy to share, categorize and receive payment for your work.

Tax Considerations

To calculate taxes and possible deductions, make sure you know what the IRS considers passive income. "Any rental activity OR any business in which the taxpayer does not materially participate" excludes portfolio or investment income as well as any business you're a part of on a regular, continuous and substantial basis. 

No matter what your current situation is, it's worth exploring a few ways to work smarter, not harder.