Passive income is the revenue generated by an individual without being involved in any active job. It is a way of building one’s wealth for the future. With the current Covid-19 pandemic and a demand to stay at home, people get plagued with thoughts of how to make passive money. Here are some tips to make passive income;
Ways to Make Passive Incomes
- Becoming an investor
Laying out capital for enterprises and businesses is one way to make money without lifting a finger. Once an investment is made, income becomes generated by receiving a percentage of the revenue made.
- Investing in Real Estate
Real estate is all about making profits from housing properties and landed properties. It generates high income, but it also requires huge capital investments. This is true especially for investors new to the game. Revenue can be generated from real estate by leasing out properties to tenants or buying properties at a cheaper rate and reselling it at a higher rate. It can also be by flipping when rundown properties are acquired, refurbished, and put up for sale or lease.
- Renting Out
Properties, secondary vehicles, spaces, and high-value household items can be put out on rent for a short period. On occasions where homeowners will be out of town for a while, summer houses and cabins can be rented out. Cars can also be listed on car rental sites to generate passive income. Unused spaces such as large storage rooms, warehouses, and garages can also be rented out.
- Through YouTube Channels
Utilizing your flair for a particular subject can also earn you money through YouTube. Create a YouTube channel, draw in your audience, create contents consistent with your niche and get them to subscribe to your channel. Once your channel is well known, passive income can be generated by running ads and sponsors in it.
- Monetizing your Blog
These days, passive income streams in through blogs. Creating blog content on a particular subject, preferably, a popular one is an ideal way to fetch money, especially with high SEO. The more the clicks on a website, the more the traffic to the website. Companies and brands reach out to popular bloggers to run ads on their websites, and in turn, money is made.
- Become a Social Media Influencer
Your love for social media, especially integral, can stream in passive income for you. Consistency is key. Create a fan page on a particularly interesting and popular subject. Get other users to follow you and grow your account. Once you have enough followers and popularity, you can make money by advertising products, brands, and services.
- Write an E-Book
Writing a book can be something to pass time with and also generate money from. Make money with your writing by getting customers to pay before getting access to your book. There are so many publishing sites where e-books can be monetized such as amazon, Goodreads, and more. All you have to do is promote your book.
- Online Course
Selling courses online can be a very lucrative business. Tutors get to share their knowledge through the course they launch. They also involve in one-on-one lectures and make money at the same time. Many platforms are hosting such services online.
- Interest-Based Money Lending
Loaning out money is also a sure-fire way to make passive money. There are intermediate parties that facilitate this money lending service. These intermediaries bring the borrower in contact with the lender. The lender in turn makes money through the interest paid on the original loan amount.
- Engaging In Drop Shipping
Like running an online store, drop shipping all about retailing goods not kept in stock. It is a very profitable passive income venture. Drop shippers contact stores with trending products, then sell these products to their online customers. With drop shipping, one can even start up their own business.
- Through Bank Deposits
Bank deposit is another way of making income without having to work, as far as you and your bank are within your limits. This option is more favorable with online banks. With term investment, money is been deposited into an account for a time range, usually short-term. Within this time, interest is been generated. The investor is free to withdraw his money at the end of the term.
- Buying Bonds
Bonds are debts owed by a company and issued as assets to investors. It is a kind of loan given out by an investor. These investors hold on to the bonds until the due date and collect their capital gain. Another way to make income through bonds is to sell them out at a price higher than the cost price. With bond, unlike stocks, there are reduced risks and higher interests.
- Stock Dividend
Payment made to shareholders is a way of making passive income. Payment is made per the amount of stock a shareholder has. The investor may also choose to reinvest his dividend and make more money.
- From Referral Programs
Refer a friend, build your referral network, earn points and get a commission when they buy the product or order their services. A referral program is a way to make money without doing any serious work.
- Build an App
Creativity can be channeled into making passive income. Invest your time, creativity, and brains into developing an App and harvest your benefit. Once the App goes public, it gets downloaded by users and the developer gets paid overtime.
In Summary
Passive income is as important as an active income. It is one of the ways of having financial security and freedom. With passive income, existing income can be supplemented. In other words, one can say passive income is saving for a rainy day. In cases where individuals cannot for whatever reasons make active income, they can always rely on their passive income to keep afloat. It is a long-term source of income. With passive income, there is no limit to the possibilities of making money, especially, in multiple streams.
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