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Are you looking for another source of income or the best passive income ideas that actually work? This article is absolutely going to give you some valuable insights.
Financial independence is a goal that most people pursue and long to achieve in their lifetime. People go out of their way to create and build wealth for themselves and for their loved ones. With an increase in the general population across the globe, the resources are becoming scarce with each passing day. This has certainly caused a strain in the lives of many. Jobs and money are vital resources and among the most sought after; yet they are the most limited to get.
9 Passive Income Ideas That Actually Work
Most people are sadly stuck in a meager income day jobs that seems not to be sufficient to fund their lifestyle. Their target of becoming millionaires seems to be elusive.
Having multiple sources of income is one of the absolute solutions to consider. There are numerous passive income ideas for automating the cash flow that you can give a try.
I love refreshing my Personal Capital account to see other sources of income show up in my bank accounts.
Passive income is obtained from residual income ideas that allow you to make cash even when you are away, sleeping or not actively involved in any activity. It’s effortless, to say the least.
However, it may demand that you invest time, money and effort to set it up at first. But once it’s all set up, you are good to go. It’s a great way to buy back the time. It guarantees you more freedom.
“Necessity is the mother of all invention” an old adage goes. There are differences between passive and nonpassive income, so make sure you understand the differences up front.
People in this century have created and discovered numerous ways to make money that they can utilize to generate extra cash. Today, you will find endless passive opportunities to consider both online and brick and mortar based.
You’ve probably already read the most important passive income books, but haven’t yet developed a plan for starting your strategy.
In this article, we will explore these opportunities and highlight the best, creative passive income ideas to consider.
Types of Creative Passive Income Ideas
The three categories of the top passive income ideas that you can consider include:
- A mix of online and brick and mortar aspects.
- Purely brick and mortar or the traditional ones.
The digital revolution today is taking the world by a storm. The internet has in recent years made its way into even the most remote of places across the world with only a few places remaining out of reach.
Majority of people today have direct access to the internet and world’s information at their fingertips, which can enable them to find online jobs and remote work in nearly every sector and industry regardless of their location. I love looking for ideas for multiple sources of income every day. You simply can’t have enough residual income ideas.
Using the digital age to your residual income advantage
Taking into account the vast paradigm shift to all things digital, it’s no wonder so much employment is now available via the internet. The stay-at-home communities are able to create their own schedules and lifestyle businesses if they don’t want to work in a dreary corporate office.
The trick rests in understanding which of these online employment opportunities is going to present the biggest rewards with the least risk. Many people have made a massive fortune by doing online jobs. Online jobs are in both active and passive forms. There are numerous great passive income ideas online.
Passive income investments can also have traditional brick and mortar characteristics. It can also be a combination of both online and brick and mortar characteristics.
A key point to note is that passive revenue is usually taxable and you should file your returns once you earn it. You can create passive income ideas and execute them to generate enough revenue to live on without commitment to your day job.
Here are the 9 proven passive income ideas to pursue
Our list of creative passive income ideas and opportunities can help you start earning money online now. These are some of the best forms of passive income that have been proven and will truly work. Starting off the list of passive income opportunities…
1. Start a blog and/or create a niche website
You can generate passive returns from blogging and creating niche sites such as e-commerce sites.
A blog is an online based opportunity that can act as a funnel or a market where you can generate passive income in numerous ways. Smart bloggers across the world earn a decent income from their blogs.
You can make a lot of money using a blog where income mostly comes from things such as advertisements through sponsored ads, Google AdSense, selling banner ads, affiliate marketing, email marketing, and many other ways.
This brings income through earning a commission if your advert converts to a sale. If people click on the links that you provide on your blog and/or buy the products that are advertised on the blog, then it earns you a commission.
The trick is to create a high-quality niche site and write SEO focused content to attract and convert web traffic or email subscribers.
Affiliate marketing is a great way to make extra cash because you earn a commission every time people click on your affiliate links on your site at no extra cost to them.
You can link Amazon Associates, Impact Radius, ShareASale, Commission Junction, among other trusted affiliate programs.
Niche website overview
A niche site earns you money if you can build traffic of people who are interested in certain products or services that you offer and link it up with Amazon Affiliates. You can also earn from placing ads for different companies in that niche.
You can also create an online store otherwise called drop shipping. The idea here is to create an online store that offers products from certain manufacturers.
Then, you earn if a person visits your store, makes an order of the products, and your system automatically sends the order to the manufacturer who then completes the order by shipping the products directly to the customer.
The difference between what you quote and what the company sells the product at is the profit that you get. You can as well try online arbitrage which is buying and selling an asset to profit from the difference in the price of those products on sites like Amazon, eBay etc.
Build a focused jobs board. It may take time to program one but you can rake in some decent income by getting paid by employers to advertise jobs on the platform.
You can build a blog from scratch or buy an abandoned blog from sites like Flippa or GoDaddy Auctions. It is also possible to make some money if you buy and sell domain names. It has become a lucrative source of income as well.
2. Automatic income from value-packed resources
This includes creating resources such as eBooks, podcasts, webinars, YouTube channel, video and audio materials. This involves first being actively involved in creating the resource, publicizing and marketing it.
Once it has generated enough traffic, you can then make it automatic where it automatically brings income when you are away.
YouTube is a great resource that people across the globe are using to make money. If you have some creativity that you can showcase in a Youtube channel, you can upload it, and make money from the ads that pop-up when they are watching.
You need to build a large enough subscriber and viewer base first to be successful in this. Email marketing, Podcasts, Webinars and audio clips also work the same way. You can a decent income if you have a large subscriber base and if they convert to a sale of the advertised products.
Create an eBook, an information product funnel or a value-packed online course that provides a solution to a given problem or need. Clients then sign-up to purchase it and the system is automated to email them once they make a payment.
3. Sign up for rewards and discount programs
You can get cash back specials on credit cards and can earn passive revenue if the right items go on sale.
Commit to buying only what you would purchase in normal circumstances and not buy items just because of couponing or because they are on sale.
Cash backs reward program like Chase Freedom benefits & bonuses, eBates, money back plus can earn you some sweet rewards and is a great saving strategy.
Our introduction to credit card manufactured spending can help you earn extra income right away.
4. License smart ideas and creativity
There are dozens of unique passive income ideas that can be pursued online through licensing your creativity. You can generate passive income through royalties that are obtained from such resources as music, books, etc.
If you are a musician or can perform spoken words or can showcase some unique talents, you earn money through royalties when the produced work is sold. You can still earn if you buy a share of the royalties and earn every time the music generates income.
This mostly happens after the death of the person who produced it and the family wants to sell some part of the ownership to the public. Here are a couple of examples of license passive income ideas:
- You can also earn royalties if you have an eye for photography. Or, upload photos to a site like Shutterstock and if it’s approved, you are paid a royalty each time one of their clients download your photos.
- In addition, you can also make money if you create a design, upload and sell it on a site like Cafepress or Zazzle. It can give you some income if someone downloads your unique design.
- You can also write books and sell them on a site like Amazon. You can also sell it to a publisher who will pay you royalties for the distribution and sale of the books.
5. Investments for Permanent Residual income
Investments can be the easiest and smartest ways to generate passive returns. If you look at it this way; you buy an asset and then wait for its value to increase in value. This gain comes months or years later without any ongoing work on your part. It’s brilliant.
There are numerous investments that you can consider such as stocks, foreign exchange, mutual funds, real estate among others. This requires one to first spend resources to analyze the market and to decide the best investments to buy.
You also need to take precaution before you pick any investment. Seek financial advice for a better outcome.
Invest in Dividend Kings or a dividend paying stock for income in the form of cash in your bank account. Or take the dividend income and reinvest into your dividend stocks enabling compound interest in its finest form.
Dividend stocks payouts that you can get like the quarterly payments is a great source of passive income. Ensure that you are able to know and to pick the right stocks that will guarantee you income for years to come.
A dividend stock can generate income from two sources – dividends and capital gains. Review our Robinhood dividend guide and review post that breaks down the Robinhood app.
Peer-to-peer lending investment consideration
Peer-to-peer lending offers another great avenue to make additional cash. Invest in a company like the Lending club. You earn every time a person borrows your money and repays it back with some interest. Find the best peer-to-peer lending sites available.
Invest in a crowdfunded real estate like RealtyShares, PeerStreet, and Fundrise among others. Real estate is one of the traditionally widely known sources of passive income.
The cost of real estate has however skyrocketed with time as it continues to increase in demand. So, a better option is a crowdfunding platform.
You can invest in rental property like Roofstock or Fundrise which is a turnkey real estate market for single-family homes and commercial real estate, respectively. You can also buy Real Estate Investment Trust (REITs).
REITs generate higher dividends than common stocks, bonds, and bank investments. REITs are highly liquid and you can easily sell your interest in a REIT anytime you want. Anyone can invest in commercial real estate these days.
Ensure you have some allocation to commercial real estate since you earn passive income and can achieve capital appreciation…
A double win.
Invest in safe investments like opening a high-yield account with an online bank where yields are higher than in the local bank and have FDIC insurance. Invest in certificates of deposits, fixed and immediate annuity. Buy Federal Treasury bills and bonds. This guarantees your income after some period.
Get out of debt. Paying off your dues faster is a good way to save.
Invest in mutual funds. This reduces the risk that your investments are exposed to and you earn from the portfolio that is performing. Invest with a Robo-adviser which is a form of automated investment management.
Consider the risk vs. returns of any investments you pick and make an informed choice. We like income-producing investments as it enables you the flexibility for future investment considerations.
I invest in index funds for retirement accounts and income-producing investments for my side accounts. I can use the income to reinvest at my own discretion.
6. Rent something! (beyond Airbnb, Uber, etc.)
This mostly has the traditional characteristics of brick and mortar but cannot be underrated.
It earns you passive revenue if you rent out space, rent your car for advertising space, and pieces of equipment and tools of trade among others.
There are plenty of ways to rent your items in today’s age.
Why not if you aren’t using it? This is the most proven way to make money for doing nothing. It’s the oldest form in the book!
7. Buy a business
You can buy vending machines, laundromats, games machines, ATMs, etc. Buying an already existing business is relatively cheaper than starting one. Most importantly, buying a business is less work. It requires more capital, but you’re already buying a proven business model.
Buy these items and pieces of equipment and earn every time they are used. You can earn extra cash if you outsource the business and let someone else handle it.
8. Build an App
Apps can be an incredibly lucrative source of passive earnings and it’s a new passive income idea that is quickly gaining popularity. In this digital era, almost everyone owns a Smartphone. Apps are being downloaded every so often.
Apps help to make peoples’ lives easier and so they are high on demand. If you can code, give it a try. If not, hire a developer to build it based on your idea. It may be expensive but it’s worth a try.
9. Network marketing
Network marketing in most cases involves a combination of the two categories. It can be online and at the same time involve some brick and mortar aspects. However, this is an area that you need to be very cautious on.
You need to do in-depth research regarding any type of network marketing you want to get involved in.
There are many scams and Ponzi schemes out there posing as network marketing and so it’s prudent to find out more information on the suitable ones to invest your time into.
Conclusion on 9 Creative Passive Income Opportunities
A majority of the best passive income ideas require a lot of sacrifice in terms of resources like time and money to start from earning from them. It is important to research the best choice to make before you settle on any of them.
Keep in mind that passive income opportunities are always changing, so stay creative! Here are several unconventional passive income ideas to help you make some extra cash.
With passive income, you can achieve financial freedom. Sometimes passive income isn’t for everyone.
Want to work online? Here’s a list of 23+ proven online jobs without investment.
I hope this article has given you some great insight and will help you make an informed decision. We will appreciate if you leave us a comment.
What are you doing to build your personal financial statement? Do you know your own key personal financial ratios?
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