PASSIVE INCOME - WHAT IS IT AND WAYS TO ACHIEVE IT
- LifeJunky
- Jan 21, 2022
- 4 min read
Updated: Feb 9, 2022
What is Passive Income?
Doesn't it sound nice to be making money while putting in little work? This is the general concept of passive income. With that said, most revenue sources will require a lot of work on the front end. While there are plenty of ways to create passive income (we will go over some of the options below) focus on the ones that you feel would fit into your life. Warren Buffett said it best, "If you don't find a way to make money while you sleep, you will work until you die."
Best Ways to Create Passive Income
1. Affiliate Marketing
Affiliate marketing is a simple, beginner-friendly approach to begin earning money online.
You can make money as an affiliate when someone purchases products, etc. through a special affiliate link that you provide.
To begin with affiliate marketing, look for affiliate networks that sell products related to your expertise. There are plenty of platforms out there. Some of the most popular are Awin, ShareAsale, Amazon Affiliates, ClickBank and FlexOffers. Once you have the product you'd like to sell, it's time to market it. You can include these purchasing links on Pinterest Blogs, Youtube posts, Twitter, etc. As people purchase your product off of your links, you will start to see the dollars roll in.
2. Invest in the Stock Market
The stock market can be a scary place for beginners. Make sure to put in the time to research stocks and how the market works. The benefit is you can now invest and watch your money grow just by downloading an app on your phone. Robinhood is one of the most popular apps for the younger generation who are looking to start their investing career. There are promotions with some apps that will allow you to make money by inviting your friends or simply signing up. I know that Robinhood will give you a small chunk of change to make your first investment.
3. Rent Your Property
As you may know, you can make money by becoming a landlord and renting out your property while having a different full-time residence. Another way is to utilize AirBnB or VRBO for specific weekends while you stay at a friends house. Both options have their positives and negatives. If you have a full-time renter, you can usually put them on 1 year leases and just maintain the property during the year. AirBnb requires more effort around organizing the renters more often and managing cleaning crews. If you want to be more hands off, there are options to hire property managers.
4. Run an Online Course
The design and sale of online courses is an amazing way to generate passive money. Depending on the course or courses you're looking to promote, you have the ability to easily make over 6 figures. Find a niche that interests you, and really dive into it. If you have passion around that topic, you will be able to run this course while making money. If you have a specific skill, know that people will want to learn your expertise.
5. Sell Photos
This will not be the most lucrative way to create passive income on this list, but it does not require much work. After you've put in the time to take images and list them on a stock photography site like Shutterstock, your photos can bring in some extra revenue for years to come. If you like taking pictures, you can let others use these photos while you make some extra cash.
6. Sell Custom Made Products
Thanks to print-on-demand services, you may open your own store without ever carrying inventory. Sites like Printify and Printful make it feasible to sell coffee mugs, sweatshirts, and stickers. With print on demand, how can you generate passive income?
Create a unique design, upload it to any product you want to sell in your online store, and watch the inquiries come in. There's easy sites that will assist you in selling these products. Etsy, Printify, and Shopify are some of the most popular. There's very high potential once you start selling your unique products!
7. Put Money into REITs (Real Estate Investment Trusts)
If you're not looking to throw a large amount into real estate, put some money into REITs. An REIT is a corporation that owns, operates, or finances real estate. The difference is, they will allow anyone to invest into portfolios. This operates just like the stock market. You can then profit from a portion of the revenue generated. The nice part about this, is you do not have to own, manage, rent, or finance a property. Like all investments, make sure to do your research on where you would like to invest. The more information you know, the better odds you have of getting a great return.
Not all investment methods will fit into your lifestyle. Make sure to put the work in to get to the point of having passive income. All of the get rich quick schemes will rarely work. Once you have the knowledge and put the effort in, you will start to see the returns flowing in!
*Disclosure: I only recommend products and ideas that I would use myself. All opinions expressed here are our own. This post may contain affiliate links that are no additional cost to you, I may earn a small commission.
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