Wouldn’t it be great to make money while you were on holiday, hanging out with friends or even while you were sleeping? It might sound like a dream and too good to be true, but it is actually possible and has a name – passive income.
Earning money via a passive income means that your earnings aren’t directly related to the number of minutes and hours that you put into work, like the jobs that we are more used to. Traditionally we get paid for the number of hours that we work per day, month or year be that in a shop, a corporate office or freelancing.
While earning a passive income, you still have to put the work in to reap the rewards, especially at the beginning, but after a certain amount of time, you will start to see financial rewards and payment for minimal effort.
It’s often said that the wealthy have multiple streams of income and that to emulate the kind of wealth and success you dream of, you need at least several types of income streams. That may sound like a lot (and a lot of work to go with it) but if you start now and put the work in, you could be that person that’s sitting on the beach in Bali, cocktail in hand, watching your bank account continue to grow.
And it doesn’t have to be your main focus or job either -having a passive income is a great way to supplement your primary source of income, giving you the financial freedom and breathing room to do all those things that you’ve always wanted. And there’s absolutely no reason why you can’t do it too.
What exactly is a passive income?
Passive income is one of the three types of income that exist and is money that you earn from assets that you have either created or purchased.
As it doesn’t solely rely on you actively having to work all the time, it’s the best income option available to ensure that you have an on-going income and financial security, especially during times of economic and financial instability.
To put it simply, you will keep earning money from your passive income sources, once you have already put in all of the initial hard work, allowing you quite literally to make money while you sleep.
Itching to set up a passive income for yourself but don’t quite know where to start? Here are four great examples of easy passive income streams that you could try.
Start a blog –
Blogging is possibly one of the best passive income sources that currently exist and one of the easiest and cheapest to set up. It can give you the flexibility of working wherever you want, whenever you want.
You can make money off a blog 24 hours per day, and there’s no limit to what you can earn. You can wake up in the morning and see that your bank account has increased overnight, thanks to your audience. Now that isn’t to say that there isn’t any work involved. In fact, it takes a lot of time, energy, patience and a lot of hard work to make a blog a success, so don’t expect to make a tonne of money straight away with only a handful of posts. But if you’re willing to put in the time to create some great content and curate a like-minded audience, you will see that a blog is one of the best possible income streams out there. Getting started is relatively cheap, and there are many tutorials out there now on how to set one up, so you don’t need to be an IT whizz either. There are various ways that you can earn money through blogging, but the most profitable one is through affiliate marketing and advertising, allowing you to make a small commission whenever someone clicks on an affiliate link for a product that you have recommended. The greater the traffic to your blog, the more chances you have of potentially converting your audiences into consumers.
Create and sell a digital product –
Now is the perfect time to create and sell digital products. They are particularly great as compared to other ‘physical’ products, you can create it once, yet sell it many times over and over again. Examples include writing an e-book or online course on a topic that you are particularly passionate about and have some knowledge or expertise in that you can share with others. If you are artsy and creative, you can create designs for products or templates for designs, and sell them on an e-commerce platform such as Etsy, or sell stock photos and videos. Once you have done the initial hard work of creating the product, you can sit back and enjoy the financial rewards without having to make more continually. The bonus is that due to its digital existence, it will always be in stock and requires little on-going maintenance! Once your product is set up on an efficient platform, your involvement can be next to none.
Investing and trading –
This can sound like a pretty scary topic if you are new to it, and you could be thinking that it comes with more risks than rewards, however investing and trading doesn’t have to be as scary as it sounds, and can be an excellent way to make a passive income. This sort of income, unfortunately, requires a bit of monetary investment upfront, but if you have a bit of money to invest in something you know will make you money down the road, then why not take the plunge? Investing in the stock market is one of the easiest ways to earn money passively, mainly through index funds and dividend stocks, resulting in significant financial results if done correctly. Make sure to take your time with it, do your research and utilize the resources around you to help you along the way such as AvaTrade who are a great help when it comes to trading and cryptocurrencies – click here to check them out!
Start a Youtube channel –
Similar in theory to blogging, just using a different medium to get your interests and points across, Youtube is a really profitable way to make a passive income. There’s a reason why the famous Youtubers do what they do, and it’s not only because it’s a hobby that they love.
As Youtube is now oversaturated with millions of videos from content creators around the world, starting out can be tough at first. You need to build a solid following of subscribers to ensure a good amount of views on your content, but if you stay consistent, true to yourself and have some great ideas, you can eventually make some real money over time. As with blogging, you can use affiliate marketing to boost your earnings as well as through the advertisements that pop up throughout the video.
While the work can be intense and tiring in the beginning, if you do it right, Youtube is easily one of the most lucrative ways of earning a passive income in 2020.