Pretty much everyone wants to earn extra money, but not many people can accommodate a second job in their schedule. Passive income is a way to make money while doing other things, allowing you to reach your financial goals without adding many additional responsibilities to your life. In this article, we’ll introduce six great passive income ideas to help you build wealth.
What Is Passive Income?
Passive income is one of the best ways you can earn extra money. That’s because it does not require a lot of effort. So when people talk about “making their money work for them,” they are talking about passive income. The ultimate goal with passive income is to earn money in your sleep.
Of course, you need to put in a little bit of time and work upfront to get the ball rolling, but with passive income, you should be able to start generating regular earnings on autopilot.
Passive income can make the good financial times in your life even better, but it can also come in handy if you find yourself unemployed or need to take time off from work due to unexpected circumstances. Your passive income will mean that even if you don’t have money coming in from your regular job, you still have a stream of income flowing in from another source.
If you’re looking for another job or waiting to start a new position, passive income can help tide you over during the lapse. In addition, having a financial cushion to fall back on can give you peace of mind and security during hard times.
Do You Have To Be Wealthy To Have Passive Income?
One of the biggest misconceptions about passive income is that it’s only for those who have wealth already. While it’s true that having a lot of money can provide you with more substantial opportunities, you can start earning passive income no matter how much money you make. And if you’re smart about it, you can reinvest your additional earnings into even more lucrative passive income schemes.
Six Ways To Generate Passive Income
So how do you start generating passive income with little or no money? There are several ways to go about it, but if you’re serious about creating an alternate stream of income and you’re strapped for cash, the following ideas can get you started.
1. Affiliate Marketing
If you have a blog or a huge following on social media, try affiliate marketing. This wealth-building technique is different from many other strategies in that it requires you to have a blog or social media site already. However, it has excellent potential for high earnings.
Affiliate marketing involves partnering with brands through affiliate links. Every time someone purchases a product while using your link, you earn a commission. There is a lot of free information online about how to get into affiliate marketing, and you can even take free affiliate marketing classes to get you started.
2. Refer New Members for Paid Surveys
Similar to affiliate marketing—where you promote a product or service and get paid—you can also earn by referring new members to your paid surveys sites. If you already work with a reputable survey company, look into how their referral program works.
For example, at Branded Surveys, you can earn points (which you later convert to cash) for every new active member you refer to the site. So if you have a lot of friends who want to make extra money taking surveys, you can accrue quite a chunk of change!
3. Rent Out a Room or Parking Spot
If you have a spare room in your house or apartment, why not rent it out? Real estate is a foolproof way of earning a passive income, but renting it out is the next best thing if you don’t have enough money to invest in property.
Tons of online platforms can make the process effortless, such as Airbnb and VRBO. These websites charge a small fee for their services, but you can still earn significant income from a room or spare parking spot that may be empty otherwise.
4. Buy a Blog
Not everyone can start a blog and deal with its ups and downs, and many frustrated owners abandon their blogs and put them up for sale. Their loss may be your gain.
You can link your new blog with Google AdSense for a steady stream of income every month based on ads that Google will place on your site. If you buy a website, make sure you have the time to add fresh content to increase your monthly revenue. Later, you can even sell the website for a higher price.
5. Create Online Guides and Courses
If you are an expert in a particular field but don’t have the time for one-on-one teaching, create online courses and guides. Chances are, there are many people who would like to learn the skills you have to offer.
If you do not have a market yet, you can put your lessons on Teachable, where students all over the world can access your content. To make your lessons stand out, be sure to use different forms of media like graphics, videos, checklists, and audio files.
6. Put Ads on Your Car
Some ad agencies offer money to car owners who agree to “wrap” their vehicles with advertisements. This can be a great way to make passive income as you’re driving your car, which is something you would be doing anyhow.
There are specific guidelines that apply to this gig. For example, you usually need to have a newer model vehicle, and often you’ll be required to have a good driving record. Also, depending on the agency, you will typically be paid by the mile. If you’re interested in this passive income opportunity, search online for Free Car Media, Carvertise, or Wrapify.
Ready To Establish a Passive Income?
Before looking for ways to provide a passive income, consider your financial goals and how much effort and money you can commit to your goal.
Whether you have $5 or $50,000 to invest, you can create income as long as you take the leap. Although it may take you a while to get started, know that you can build wealth and financial security over the long run by taking advantage of passive income opportunities.