This is one of the fundamental aspects of building true, sustainable wealth: Passive income.
Spending money consciously, investing sensibly, and paying off debt are all important and necessary, to create a lasting change in your money journey, but what happens if you have tried to find the spare cash and literally cannot find anything extra, no matter what you do?
This is where “passive” income comes in to play
Renting out a room, building a blog that you can monetise, vending machines and selling online products are all ways you can bring in the extra cash you need to save, invest or free yourself from debt. I’m not going to pretend its easy, because it isn’t. Although it says “passive”, there is nothing “passive” about it. It takes hard work initially to set these systems up, but when you do, WOW, is it amazing.
I strongly encourage you to start exploring how you can set up a passive income stream of cash into your life WHILE you manage your money careful. There is no point in bringing in more money if you have poor money habits – it will just leak through your fingers faster than sand or water.
So read this article for some inspiration, and then get scheming!
What is passive income
Passive income seems to be a new ‘buzz phrase’ at the moment that a lot of people (especially online) are using.
But what exactly does this mean?
Passive income is money that comes into your life WITHOUT you needing to be at work or doing a lot to produce it after the first initial effort – in other words, when you’re on holiday, when you’re asleep, or when you’re going out for dinner, money is being made.
24 hours a day, 7 days a week, 365 days a year.
Just about anybody who wants to build real wealth these days is turning to passive income, and thanks to the internet, it’s easier than ever. There are now so many ways to create passive income, and they are suitable for anybody.
Let’s talk about why you should look at passive income, how you can start earning it.
Passive Income: The Key To Financial Freedom
So, why should anybody begin looking at passive income? Well, passive income is the key to financial freedom. Who wouldn’t want to be able to say that they are financially free? When you’re financially free, you no longer swap your time for money. You’re not a slave to money, you can go where you want, when you want. You can earn while you’re sick and out of work – some even upkeep their passive income streams as their full time job, and make more than they ever would in the rat race.
Anybody can be financially free, and people are doing it all over the world after reading stories from other people who have done it! Some people are literally using passive income streams to make millions. Imagine being able to travel the world, visit the places you’d always wanted to visit, and money not be an issue at all? You can create this lifestyle when you start earning passive income! And no, its not too good to be true.
Explore The Various Passive Income Streams
Now that you’re on board with the whole passive income thing, you should explore the various passive income streams you can use to begin making money. The key is to choose one, stick with it, master it, before moving on to another one. Before you know it, you have a number of passive income streams under your belt and you’re making a decent amount of cash!
Here are 8 ideas:
1. Rent Out A Room
Renting out a room is a good idea if you have one spare. You don’t even have to rent the room out – how about a parking space? Usually, taking a look around your home with fresh eyes and a passive income mindset will allow you to find a way to make more money.
2. Invest In Property
Investing in property is a great way to start making passive income if you have a large amount of money you’re looking to invest. However, getting started with property investing can be tough. If you don’t really know where to start, it can be a good idea to look into property managers who will take care of most things for you. Of course there’s a lot to think about; taxes, who will live in your property, how you’ll cope if you don’t get tenants right away, and so on. Do lots of research first before diving in.
There are ways you can invest in property without owning any too. Look out for crowdfunding platforms that invest in property for you like LandDevelop.co.uk. Just make sure you read all the paperwork thoroughly, and know what you’re getting into before you part with your cash.
3. Start Micro Investing
Micro investing is a good way to dip your feet in the water if you’ve never invested before. You can download
apps that basically do this for you. They round off purchases that you make, and invest pennies. You can see how it works this way, get a taste for whether it’s for you, and begin making larger investments later on down the line. Moneybox is one you could give a try for example.
4. Write An E-book
Do you have a little writing talent that you’d like to flex? Just about anybody can write and publish their own e-book. You could even pay somebody else to write the book for you, while you reap the benefits! However, marketing your e-book is usually what makes it successful, and you’ll likely only want to do that if you can happily put your name to it and be happy with the quality. If you have expertise in a certain subject, this could be a wonderful option for you!
5. Affiliate Marketing
Affiliate marketing can be a good option for YouTubers and bloggers, or those looking to get started in creating that kind of content. Simply placing affiliate links can help you to earn commission on the purchases that people make, without the purchaser taking on any extra costs. If your content is in-depth enough, then people will likely make purchases that make you a decent amount of money. You do need a decent following though. You can’t just send out an affiliate link to your twitter account and expect to replace your income though. It takes time and patience to build an online following, so stay in it for the long game.
6. Use Cashback Apps When You Shop
When you’re looking to buy something, check out a cashback app or platform to see if you can click through to the website and purchase your item there. This only takes an extra few seconds, and you can make a small amount of money back on your purchase. If you remember to do this regularly, you can actually build up a nice amount of pocket money. Think of the money you could save. Better yet, when you withdraw the cash, make sure you put it back into your savings so your cash is really working hard for you. Quidco and TopCashBack are two excellent examples.
7. Create An E-Course
Another great tip for those with knowledge on a specific subject; making an e-course. Making a quality course can be hard work, but you’ll only have to do it once. You will need to consider how you’ll market the course, as well as whether you’re going to give feedback to students assignments and things so they get the most out of it. Think carefully about your target audience and find out what they want to learn about your subject. It would be heart breaking if you made something that nobody wanted. Your audience is out there, you just have to give them what they want! You can upload your course to places like Skillshare and Udemy, or you could use a different platform/your own website.
8. Vending Machines
This might be a surprising one, but it IS a passive income stream. You have to lay the groundwork first and work out the best place to have the machine, as well as have a system for refilling the products etc, but once set up, it could be a literally “sweet” strategy to bring you in extra income (totally pun intended).
What if I don’t know what to do?
Don’t fear. You can teach yourself absolutely anything using YouTube, and if not, there are always skill sharing platforms like Udemy you can use to learn something new. There are books, blogs, and more resources out there dedicated to becoming financially free.
Commit to doing this and you could be earning more money than you know what to do with!
I absolutely love passive income, and I know you will too. What will you commit to on this list? Do you have any other ideas? Drop me a comment below!