When it comes to building wealth, generating income streams is very important. Most people only generate income through their salaries or business revenues. However, there’s an entire world of passive income generation ideas which can make you rich without requiring any effort. Sounds interesting? Well, it is, and this post is going to introduce some passive income ideas which you can use to build wealth over time.
How to Get Started
It is quite difficult to select just four or five passive income ideas to get you started since people’s choices, financial situations and goals may vary. However if you face some difficulty in choosing many options from the list provided in this post, just choose one option and give it a try. To actually grow a passive income stream, you will need time and patience. So get well versed with one option before moving on to another. Pick an idea, make an idea, and dedicate yourself towards making it work until that income stream comes to fruition. You can also take some advice from Wealthface’s financial advisors in this regard.
How do I generate passive income?
Passive income is the idea that you deploy time and/or money and receive income with no additional work. You have to try to do something to generate some passive income up front, and then use that to generate even more income over time.
What are some examples of passive income?
Investing is a great example of passive income. You invest money in a company stock, and you receive a dividend payment and appreciation on the investment. Another popular example is real estate. Whenever you buy some property or a piece of real estate, its rent serves as a source of passive income. Even a general appreciation in the property’s value serves as a kind of passive income.
Does passive income really work?
Yes. Passive income is how the richest among us still build their wealth. When you don’t have money, you can leverage your time and effort to create income streams that will grow into the future. As you accumulate money, you’ll deploy that cash (and even combine it with your time) to make more and more passive income.
Where can I invest to generate passive income?
If you want to invest to generate passive income, dividend stocks and mutual funds are great ways to do it. You can also invest in debt instruments, such as bonds.
If you want a safer approach, you can invest in a money market account or Cash Deposit to get risk-free return on your money.
What are the most popular passive income ideas?
There are a lot of popular passive income ideas (a lot of them fall in the alternative investment category). The most popular ones include investing in the stock market, owning real estate, investing in a business, and even simply keeping your money in a high-yield savings account. All of these approaches generate passive income, but they all require up front capital to be effective. What do you do if you want to generate passive income without really having much capital up front? Don’t worry, you can still generate passive income by investing your time.
Passive income ideas that require you to invest your time
These passive income options require you to invest your time. Almost all of those ideas require starting a private blog or website. But the good thing is that it’s incredibly cheap to do. You can use inexpensive services to start your own blog. You can get a free domain name and hosting starts at as little as $3 per month. You can definitely afford to spend that much to start building a passive income stream.
Sell an eBook
Self Publishing is mainstream today. When you purchase an eBook from Amazon, there’s a good chance you’re buying a self-published book. Self-publishing is also ridiculously easy. To self-publish a book, you need to write and edit it, generate a copy, then upload to a program like Amazon’s Kindle Direct Publishing. Don’t expect instant success though. You need to do a large amount of upfront marketing before you can turn this into a passive income stream.
Create a Course on Udemy
Udemy is a web platform that lets its user take video courses on a variety of subjects. Instead of being a consumer on Udemy you’ll instead be a producer. Create your own video course, and permit users to get it. This is an incredible option if you possess a great amount of knowledge on a specific material.
Selling Stock Photos
If you have ever looked at the photos on your favourite magazines and websites and wondered where they come from, the answer is stock photo websites. If you enjoy photography, you can submit your photos to stock photo sites and receive a commission every time someone purchases them. You can upload your photos on stock photo marketplaces such as Shutterstock and DepositPhotos.
Just like stock photos, you’ll license and earn a royalty from your music when someone chooses to use it. Music is usually licensed for YouTube Videos, commercials, and more. A lot of famous musicians have become very rich out of royalties from just a single hit of theirs.
Create an App
If you own a smartphone or tablet then it’s safe to assume you have several apps downloaded. But have you ever had an amazing idea for an app? If so, you should consider hiring a programmer and app designer to make your app for you. List your app on the Google Play and Apple App stores and generate residual income.
Affiliate marketing is the practice of partnering with a corporation (becoming their affiliate) to receive a commission on a product. This method of generating income works the best for those who run blogs and websites. Even then, it takes an extended amount of time to create before it becomes a viable passive income source.
Certain websites allow users to custom design items like T-shirts. If your design becomes popular and people start buying it, you’ll be ready to earn royalties.
Even Amazon has ventured into this business. Amazon has a new service called Amazon Merch, where you simply upload your designs and Amazon takes care of the rest (making it, packing it, and shipping it).
Sell Digital Files on Etsy
If you’re into graphic designing, this might be a tremendous passive income idea for you. It’s time to put your artistic skills to good use. Make a great design, and keep earning passive income through it.
List Your Place on AirBnB
If you have a house, apartment, spare room, or even a backyard, consider listing your property on AirBnB and start earning money when you get your place booked. Signing up on AirBnB is very easy. AirBnB is great because you’ll earn money on an area you already own. It does require a little work up front to prepare your place, list it, and clean up after guests, but it’s pretty passive otherwise. And unless you get idiotic guests who destroy everything they touch, the upkeep of the place isn’t really very high.
Rent Out Your Car
Similar to listing your place for rent, you can also list your car for rent. This can be truly passive because once you list your car, it can earn you income when you’re not using it.
Drive your car as an Uber/Lyft
If you have a car, a driver, some spare time during the week, have a good sense of direction and don’t mind driving around town, run your car as an Uber/Lyft taxi and make your driver drive it. It’s a good way to earn some passive income. Lots of people run multiple cars as Uber/Lyft.
Cashback Rewards Cards
If you pay your bills with a credit card make sure it offers cash back rewards. You can let your rewards accrue for a while and possibly put the easy money you earned towards another passive income venture. (Be sure that the card you select doesn’t have an annual fee or you might be cancelling out your rewards).
Just like cashback rewards cards, you should opt to use a cashback site when shopping online. If you don’t you’re giving up free money that requires little to no work. Always look out for discount coupon codes online as well. Remember, every dollar saved is a dollar earned.
Get Paid To Have An App On Your Phone
What if you could install an app on your phone, and get paid for it? Yes, such apps track what you’re doing and sell your data. If you are comfortable with that, it’s a great source of passive income. You just download such apps and do what you normally do. The app runs in the background and automatically enters you in contests to win rewards. A simple and easy way to get money for nothing (as long as you don’t mind sharing your data).