Recently updated on October 25th, 2022 at 11:32 am
Keeping a nine-to-five job is no longer enough in an increasingly expensive world. Chances are, what you are earning from your full-time work is barely enough to sustain your monthly expenses. So what options do you have left except to find other avenues for additional cash flow?
If you are keen on finding and maintaining multiple income streams, then you must have come across what they call “passive income.” This type of revenue is earned without requiring you to do a lot of active work after setting it up. Passive income allows money to stream in while you are busy working on your main job.
Passive income does require upfront investment and a lot of nurturing, but once you’ve established your passive income stream, it will start to pick up and maintain itself, often with minimal effort on your part. Having a passive income means you can tick off some of your financial goals in the easiest way possible, whether you are looking to build your emergency fund, save up for a home, or plan a long trip abroad.
Passive income can also be used in other ways, including paying off debts and saving up for rainy days.
If you plan to build your own passive income, the following good passive income ideas can help you get started.
1. Create and Run a Blog
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It is possible to do something you love and earn from it. Often considered as a holy grail of online entrepreneurship, blogging does not only allow you to indulge in your hobby, but you can also turn this passion project into an income-generating source.
Blogging offers a flexible and exciting way to earn money, and you don’t have to sweat it out so much except during the initial stage of setting up your blog and growing your readership. Once you have established your name in your chosen niche, you can earn from advertising revenue. It can be through banner ad space on your blog page. Every time a visitor clicks on the ad, you’ll get a certain amount. While this scheme may not usher in huge rewards, it’s a great start to monetizing your blog.
Another way to earn from blogging is by writing sponsored content related to your industry and relevant to your readers. They often refer to this as advertorials. These advertisements are in the form of a paid article or blog post. They do not usually take up so much of your time. They’re simply an extension of your hobby—that is, to write.
2. Publish an Online Course
Find something you’re really good at, and make a course out of it. You can do this by getting to know yourself more, including hobbies and career experiences that you’ve picked up over the years. Think of a target audience and their usual problems. It is then that you can develop a solution to their challenges.
Online courses can serve a niche audience that is instrumental in helping you build a solid passive income stream. Just remember that to succeed in this endeavor, you need to invest ample time and effort into your craft, ensuring that your course is of high quality and poses a resolution to your target audience’s struggles.
Platforms like Udemy can host premium courses. You only need to create the course once and update it every once in a while to make it green and fresh. Even if you don’t actively monitor and write new courses, your existing courses can let you earn money as long as they stay relevant.
3. Start a YouTube Vlog
The increasingly digital world provides an ever-evolving stream of entertainment. Nowadays, videos are the preferred form of content that large audiences love to consume. Why not ride on the trend and turn it into your very own passive income stream?
If you’re comfortable facing the camera and talking about relatable topics in a way that resonates with your chosen audience, then you’re set to go. You can start your vlog channel on some of the biggest video-sharing platforms. Like blogging, vlogging offers opportunities for sponsored or paid content.
You can advertise a brand to your audience, often in the form of reviews. People these days prefer ordinary influencers who know of and relate to their struggles, whether it’s dealing with sensitive skin or getting in shape. Platforms like YouTube can also let you monetize your vlog channel by incorporating ads in your videos as long as you’ve reached the required watch hours and number of subscribers.
4. Try Out Different Investments
When one says passive income, the first thing that often comes to mind is investing. This method usually produces good results. You want your hard-earned money to work for you with minimal effort on your part; that aim is entirely possible. You only need to invest once, at the very least, and you’ll generate a steady flow of income.
Some of the things you can invest in include dividend stocks, index funds, and real estate, among many others. While there is an associated risk with investing, you can make sure that you understand your goals through closely studying how it’s done before jumping headlong into it. You should read crowdsourced reviews from online sites and communities before you take the risk for your peace of mind.
5. Open a High-Yield Savings Account
You’re the kind of person who saves every penny you can get. But have you ever wondered how much return they give you while they’re sitting idly in your savings account? If you’re the type who doesn’t want the risk of investing in stocks and bonds, then creating a high-yield savings account is the next best thing.
You can put your hard-earned savings in a high-yield savings account and expect a higher cash flow than your typical savings. That is because this type of savings earns considerably higher interest annually. They may not be as massive as the returns from more aggressive investments, but the slight differences can add up over time.
6. Consider Affiliate Marketing
One of the most effective ways to earn a steady passive income is through affiliate marketing. This is where you sell another entity’s product or service, and in the process, you’ll earn a commission on the number of sales you make.
You can promote these products or services through an online medium, such as your blog, video channel, or social media pages, using a referral link, which is unique to you. Every time your followers click on that link and proceed to buy a product you’re promoting, you’ll earn a certain amount.
All you need to do is to connect your audience to the products you’re promoting. Once you’ve published your content on your chosen platform, your referral link will do the work for you.
Wrapping It Up
Improving your earnings through passive income is doable. It is the first step in your journey to financial independence. Eventually, your passive income will build your savings and other funds, giving you a cushion when you feel the need to move into another job or quit your job altogether.
Setting up your passive income stream doesn’t have to be complicated. You can start small and go from there. What matters is that you’re able to establish a system that works for you.