Passive income remains one of the most interesting yet misunderstood topics these days. Whenever people hear the word passive income, they think of a life where they do not have to do anything but sit carefree all day while they continue to have a cash influx in their bank accounts.
While this idea certainly sounds appealing, you would have to work quite hard, in the beginning, to get it running. If you are also looking into solving the mystery that is passive income, you might want to continue reading.
Before we get into the ways of earning money without doing a lot of work, we have to tell you what makes this topic so interesting.
Following are some ideas for passive income. Hopefully, you might find a few of these ideas suitable for you:
1. Investing in high dividend stocks
The first and the simplest idea of generating passive income is investing in dividends. While investing in this idea might cost you a significant amount initially, but it is going to help you have a steady income after some time.
You would also have to spend some time researching about good stocks, but once you have done that and invested in dividend stocks, you will be able to enjoy a nice income with the passage of time. According to dividend.com, Warren Buffet – one of the richest men on earth- is also a fan of stocks that pay dividends.
2. Earning through making YouTube videos
With the way technology is progressing, this step of earning a passive income should not be surprising. In fact, according to Business Insider, this is a venture that is growing rapidly. The most interesting thing about investing in this venture is that you get to choose the field you are passionate about.
Be it music, tutorials, comedy, movie reviews, games- anything that you find exciting. All you have to do is make a video about it and put it on YouTube.
Furthermore, you can also earn with the help of Google AdSense. When you overlay your videos with Google AdSense, and someone clicks on that ad, you will earn money from it.
3. Affiliate Marketing
This idea of earning passive income is relatively newer. According to Forbes, in affiliate marketing, you own a website or a platform where you promote other companies. These companies are also known as affiliates. If someone visiting your website uses the affiliate link given by you to buy a product or sign up for a service, you get paid.
This technique is especially helpful for people who have blogs or active websites. Though you might think that this technique is hard, that is not true. There are so many companies in the world who want their products or services sold in as many places as possible.
4. Invest in purchasing a blog
Thousands of owners abandon their blogs every year. If you do your research properly and find blogs which have a significant amount of web traffic, and they were earning money for their previous owners, you can easily create a source of earning passive income.
Google AdSense once again plays a crucial part here. According to Good Financial Cents, Google AdSense provides monthly income to people who have placed Google ads on their blogs.
The earnings can be increased even higher with the help of affiliate marketing on these blogs, which you have already read about.
Some websites have evergreen content on them. This means that even though the blog has gone silent, it will continue to generate passive income. Thus, investing in a blog worth $5000 can bring you a lot of money per year.
5. Write and then publish an eBook
Writing and then getting your eBook published is another way of generating passive income. If you are passionate about writing non-fiction or stories, then you are going to love this idea even more. Non-fiction eBooks include writing books that educate your audience on different topics such as online marketing or other self-help areas.
According to Entrepreneur, writing on such topics sells better than writing fiction books. While fiction can also help you generate an income, the competition in that area is relatively high.
But if you do happen to write an interesting fiction that manages to gather readers’ attention, it could even get adapted for a movie or a TV show. This would also generate money for you.
6. Invest in a rental property
Since you would have to arrange cash for 20% down payment (general lender minimum), it might take you a while to try out this technique. But once you have arranged the money and invested in a rental property, it could lead to a pleasant turnaround.
If you want to calculate your cash flow, it is important that you keep tabs on your income and expenses. Unless you manage the property yourself, you would also have to pay the property manager, which would be included in your cost.
While this way of earning might not be completely passive, you can, however, use the cash flow to invest in your next down payment. In fact there are a lot of rental property investors that do this.
7. Use your vehicle for advertising
The last way on this list for creating passive income also happens to be very simple. You would simply have to drive your vehicle around town in this idea. First of all, you should contact a specialized advertising agency.
They would have to evaluate your driving performance along with the routes you drive on and the number of miles you travel. If they find you suitable for one of their advertisers, they will place their ads on your car.
Since you are offering your vehicle, you would not have to pay any cost for placing the ad. Such agencies are looking for a newer model of vehicles and drivers that have a clean driving record. So if you also want to try out this idea, then it is recommended that you take care of these two things.
Which Passive Income Idea Will You Try?
The idea of earning passive income might sound unachievable, but you would be surprised at the number of people who are actually earning it. With the right research and proper guidance, you can also become a part of it.
Speaking of proper guidance, this video explains well how you can start earning through passive income, especially if you are a beginner. Always remember that you don’t need to have multiple sources of earning passive income.
First, you need to focus on the ideas on this list that seem doable, and then slowly expand towards the other ideas. Keep in mind that the steps you take don’t need to be big; they just have to take you in the right direction.
