Do you want to quit your 9 to 5 job and to do passive income and make money while you sleep. It’s not that easy but it’s a realty. It requires a lot of nurturing in the beginning. It is a hard work to build an audience, optimizing paid ads, delivering a superior product. But once you will be able to maintain themselves, it can bring you consistent revenue without much effort.
As an aspiring business owner you make not disagree in putting a little bit of effort in doing passive income. This can help you in increase your earning and accelerate your financial growth. Thus it gives you more flexibility and financial freedom.
So let’s discuss in detail what is passive income i.e what is the definition of passive income and how to turn it to a realty.
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What is Passive Income?
Passive income also known as residual income is the money which you earn without actively working for it everyday. So now the question arises what is actively earned money?
So active income is the money which you earn by going to work everyday. Its our 9 to 5 job. If we don’t work then we are not paid for that. But the case of passive income is totally different.
This income opportunity requires less work as compared to others. Yes it is bit hard in the beginning but it reaps the reward for years. It can give you freedom of time with increase in your personal finances. Passive income can make you financially independent and in turn reduces your stress and anxiety.
It is not required how many hours you work but you can earn through passive income with little hard work once your revenue stream is set up. And the most important thing is that you will do what you love to do with still earning money without any stress.
How to build a passive income
Any magic does not work to turn your time into money. It requires a proper way and planning so that you can grow your money even while sleeping or you are not doing any work.
These are some points you need to follow to grow your passive income.
Access your skills
You should first find out your skill which are good at? About which you are passionate?
You may be good at writing blogs, or a good stock trader or may be good at management. Then you can search the ways people have used those skills to build income stream.
Access your time, money and effort
Time is the most important and limited resource. To grow your passive income initially you have to spent a lot of time to learn new topics and skills. If you don’t have time to spend then you should hire someone and need to invest for doing the work for you.
Explore Ideas and choose how to begin
You should take a piece of paper and write down your ideas and how to begin them. So below mentioned there are a lot of ideas from which you can choose.
Passive Income Ideas or types of passive income
There are two approach to generate passive income.
By investing money :
If you have a bundle of cash , then you can directly invest it to generate passive income without any time and effort. Some of the ways are listed below.
Dividend Stocks
This is a tried way to get passive income. Shareholders in a company with dividend stock receives a regular payment from the company. All you need to do is to own the stock in the company.
You have to do plenty of research to find good stocks and invest amount of money. Companies pays the dividend on quarterly basis out of their profit. This is one of the best ways to generate passive income without much work.
Rental out your basement or garage
If you own a house renting out the extra space in your house like the basement or the garage can be one of the best way to earn money on a monthly basis.
High yielding savings account
The best place to put your money is in a high yielding saving account in a bank. As interest rates are rising, so you can get a passive income stream easily and without much effort.
Peer to peer lending
This is also known as P2P lending and is a way for people to lend and burrow money. The borrowers those who typically don’t qualify for traditional loans join a marketplace where you can lend them loan. In return you can get your interest out of it. Lender have the ability to choose your own borrowers.
The great part about this is that you simply lend your money and you get back the principal as well as your interest.
Earn cashback on every purchase
If you are doing shopping online then you can take advantage of cashback rewards.
Many credit cards offer a cashback on purchases you already made. Many cashback credit cards also offer sign-up bonuses. For these programs, you’ll usually need to spend a set amount within the first 60 to 90 days of opening your account in order to qualify for the bonus.
Buy an already profitable digital business
If you want to skip the start up phase of building a business then you can invest in buying a blog that is already built and earn revenue. Getting a blog going is a long process, and it’s not uncommon for people to give up before they’ve reached their full potential.
If you buy a blog then you should have some idea on running it.
Invest time and effort
If you don’t want investing for passive income then you can spend your time and effort to build your source of passive income. Here is a list of ideas which requires your time and effort to build.
Create an online course or guide
When you have knowledge about a certain topic, you can sell an online audio or video course in certain platforms like Udemy. Once you create this course, you will be paid for each students that enroll for it.
Udemy has a built in base of students but one drawback is that it takes away more of your revenue. You can create your course for free, upload your content and launch it and attract students to sell your online courses. Udemy is user friendly and is one of the best sources for your passive income.
Affiliate marketing
Affiliate marketing is the process of earning passive income by selling others product or services. You can earn a commission for each sale you generate.
If you are a social media influencer or a blogger, you can promote a product by giving the link in your site or social media account. You could also start growing an email list to draw attention to your blog.
When a visitor clicks on the affiliate link provided and make a purchase from the third-party affiliate, the site owner earns a commission.
Furthermore opening a blog can open you up to all sorts of other revenue streams. You can also make money by advertising too. As long as people are reading your content, there is opportunity for you to earn money.
Start a youtube channel
Starting a youtube channel is another way of making passive income. The income potential of a successful YouTube channel is high. Affiliate marketing, sponsorships, branded integrations, and ad income can all add up for your stream of passive income as you accumulate content, clicks, and views and grow your audience.
Sell an E-book
If you love writing content then it will be easier for you to write a
e-book of 100 pages and publish your e-book on your own. You can find a stream of passive income easily.
Make sure to choose a profitable topic and market it through bloggers and influencers. If you want to create some residual income then you should go for it. Using Amazon kindle is one of the best and easiest way to publish your e-book easily and get a passive income out of it.
Start your own online store
Starting an e-commerce store is a great idea to earn income online. By setting up your supply chain in a clever way, you could create a business that can make a stream of passive income with little effort to maintain it.
You can sell your product or others products. Check out Shopify as it is one of the best e-commerce platform out there. They have beautiful templates with the help of which you can design your site easily. They also have lots of tools and adds-on to help you process payments, handle deliveries and returns, set up promotions, and much more.
Sell stock photos
Do you enjoy snapping photos or are you a photographer. Then there is an option for you to sell your images as stock photos online.
Some websites pay you based on the number of downloads. Every time someone downloads one of your pictures, you will get paid a percentage for that download. So once the pictures are uploaded, you will be earning passive income. If you have the skills and resources to do so, you can create your own website and sell your stock images.
License your music
Are you passionate about composing music? If you like that then definitely this can be a great passive income source for you. You can earn from your music by licensing it in various platforms like youtube, computer games, movie trailers.
By creating stock music you can earn from it when someone download it.
Develop an APP
Hiring a person to create an app can cost a bit of money but if you are a developer then you can build an app and create a product or service to sell. Creating an app is a great source of passive income.
Are you willing to pick your favorite passive income idea?
Look at what you are working with: establish your financial goals and decide how much time, effort, and money you’re willing to put into your venture. Then decide which one you want to choose as per your skill.
So why to waste time, just go for it today. You can definitely find the right way to find a passive income stream.