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Why Making Easy, Passive Income Is Possible With the Right Approach Name a billionaire. Most likely, he or she is earning income passively.

By Phil Town

entrepreneur daily

Opinions expressed by Entrepreneur contributors are their own.

If there is one way many peole have dreamed of making money, it is by making it passively.

The key to truly generating passive income is by putting it in one, lucrative place and watching it grow exponentially, says Entrepreneur Network partner Phil Town. To start growing income passively, you should look into investing.

Investing in businesses with a solid moat around them, or which have built a solid ecosystem around their products, can make money for its investors by paying back a rate of return of 20 percent, a real rate that Apple does, in fact, pay its investors. So, if you are investing in your money in a worthwhile business, then you can very well see your money grow, year after year, without much of your help.

Click the video to hear more tips.

Related: Why Investing in Big Tech Companies Shouldn't Be a Complete No-Brainer

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Phil Town is an Investment Advisor, Hedge Fund Manager, 2x New York Times Best-Selling Author of Rule #1 & Payback Time, and Ex-Grand Canyon River Rafting Guide. Rule #1 Investing is Warren Buffett style investing, teaching you how to buy businesses on sale, with little risk and 15 percent returns. In fact, Rule #1 investing is practically immune to the ups and downs of the stock market.

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