The buzzword these days is ‘passive income.’ Everyone that is on a quest to achieve financial freedom has a goal to create multiple streams of passive income that will finance their dream life. But what is passive income? It is an income stream from activities that you do not actively engage in, like earning rental income, stock dividends and more.
Passive income is important because it can supplement active income, be used to pay off debt, save for a rainy day or invest into higher return investment vehicles.
You can make passive income as you pursue your primary job, and for this reason, it acts as your financial security. Building wealth through passive income is an important strategy to learn. In this article, we will learn the 11 passive income ideas that anyone can start now for to make extra cash. Let’s dive in!
1. Investing in the Dividend Stocks
If you become a shareholder in a company with stocks that yield dividends, you will receive payments at regular intervals from the company. You will receive dividend profits from the company every quarter, and all you need is to own stock in the company. Dividend profits depend on the number of shares you have. The more shares you have, the higher the payout.
2. Investing in the Cryptocurrency Staking Program
Many Cryptocurrency wallets and brokerages allow you to stake your cryptocurrency coins or tokens. Staking it’s like buying dividend stock, but the dividend returns of cryptocurrency tend to be much higher than the dividend stocks. However, when you stake your bitcoin or other cryptocurrencies you receive a passive income for as long as your coins are staked.
3. Real Estate Investment Trust (RIET)
A RIET is a company with ownership and management rights of a real estate property. RIETS can be purchased in stock markets as you would stock of a company. Or you can purchase them as a dividend stock. You will get profit in the form of a dividend according to the rates of the RIET. Some of the best RIETS increase dividends on an annual basis, and you are sure of an increasing revenue stream as long as you have shares in that RIET.
4. Having Sponsored posts on social media
If you have strong social media presence on Instagram or TikTok, you can get consumer brands to pay you to advertise their products and services to your audience. All you need to do is keep uploading content that attracts the audience to your platform. With a massive following, you can easily monetize your content with sponsorships.
5. Investing in High yield Certificates of Deposits.
An investment in a high yield certificate of deposits at an online bank can earn you passive income with a high interest rate. All you need is to search the top certificate of deposits rate or the top savings account. You are guaranteed returns on the principal amount of the financial institution you are dealing with backed with the FDIC.
6. Rent Out That Extra Space in Your Home
Take advantage of that extra space you are not using and earn passive income of rent. If you are going out of town for some time or going away for a vacation you should consider renting that space for the period you are away. You can advertise the space on several websites like Airbnb, and you can set the rental terms for yourself.
7. Put Advertisement on Your Vehicle
A drive around town can earn you some passive income. All you need to do is contact an advertising agency that will evaluate your driving habits and the number of miles you drive per day. If you get an advertisement that matches your driving habits, your car will be ‘wrapped’ with advertisements, and you will be paid for the advert per mile that you drive.
8. Peer To Peer Lending
These are personal loans that you make with your borrower, and they are facilitated through a third-party intermediary, for example, a lending club. There are other players like the funding circle for large businesses with higher borrowing limits. These come with better payoffs and target better credit risks. You will earn profit in the form of interest paid on the sum of man that was lent out. All you need to do to cut on the risk by diversifying your portfolio through investing smaller amounts over multiple loans and analyzing the borrowing history of the people you intend to lend to.
9. Selling Photography Online
Your photography skills can be used to create images that you may sell again and again. There are platforms like Getty Images, Shutterstock, and Alamy which you can register and upload your images on. The platform will pay you every time your image is downloaded and used. Your photos should be appealing to the target audience or represent a scene of interest.
10. Do Affiliated Marketing
With this kind of marketing, you as a website owner, a blogger, or a social media influencer will promote a third party’s product for a commission when a sale is made. Using a unique affiliate link from stores like Amazon, eBay, Awin, or even ShareAsale, you need to actively promote it. Thereafter, the income becomes passive income especially from recurring products and services. You therefore earn a commission when visitors to your site click on the link and purchase from the affiliated third party.
11. Write an E-book
This is a good opportunity to take advantage of low publishing costs, as you leverage the worldwide distribution and millions of potential buyers on Amazon. Ebooks are short and pocket friendly to create because they rely on your expertise. You can use an online platform to design the book and even test the market with different titles and price points. You do not need to be an expert in a specific topic as you can outsource the writing to freelancers and then sell the book for profit.
Final Take Away
Several factors determine the best passive income source. These may include the amount of money you need to put in, your interest, and the amount of time you need to invest in getting this passive income. When these factors are well-considered, and you make your choice of the method to use, take action and start working on creating it. With some set-up effort, the passive income that you will get will be worth the effort made. Good luck!
Comments