Last Updated on February 5, 2022
Are you searching for ideas to make more money. Then this post will guide you to ways that will help you to earn more through various income generating sources.
Let’s find out more!
Here, in this post we are talking about passive income. Have you ever heard of it?
Passive income is one of the most appealing source to generate wealth. Earning a good amount of money and becoming rich to fulfill the desires is a thing that every person wants. Working hard is the most effective way to build wealth, whether it is done in a clever way or the hard way around. The smart/clever way comprises of establishing more than a single path to produce income or having more than one income source.
Passive income is income that is gained from other sources than the primary source. These secondary sources of income will help in reducing efforts that are made to produce a decent portion of income alongside the main income.
“One should keep in mind that being passive does not mean doing nothing and getting rich.”
As every person who is earning passive income knows that it takes a fair amount of time, resources, and effort at the initial level to create such a passive income source. Once successful it will help in generating a constant stream of income in long run. However, having more than one source of income not only boosts earning capacity but also helps to fulfill those goals which have to be abandoned due to the scarcity of finance.
Passive Income Definition
Here the term is made up of two words i.e. passive which means that is not active and income means money gained in regular intervals. So, together passive income is defined as the money which is gained in regular intervals without actively putting effort, time, and resources.
Now, you understand the whole concept of passive income. There are numerous ideas that will help in to generate a passive income source.
Check it out below!
Passive Income Ideas
One can easily get partial ownership in a listed company by simply investing in stocks. These stocks can be purchased directly through stock exchanges. High dividend-yielding stocks serve the purpose of generating income on a regular basis as companies pay dividends on these stocks quarterly or on an annual basis.
Also, investors’ will be benefitted from the capital appreciation from the long-term holding of the stocks. Another way to gain dividend income is to buy in ETFs or mutual funds that invest in dividend stocks that way the investors’ did not only get the advantage of investment diversification but also gain income on these investments at regular intervals.
2. Became a Sleeping Partner
In a partnership business, one can get a certain percentage of share in income by not actively participating in the management and activities of the business. This form is known as sleeping or dormant partner. As abide by the partnership laws the sleeping partner has to invest capital in the partnership business and share profit and loss arises. Share from the profits serves as an income source.
3. Rental Income
An investment in a property can be an option to generate regular income. Real estate investment is a crucial financial decision as one has to pay a large amount to purchase a property. While the property will be used to provide rental if not used by the owner for personal consumption. Rental income provides a steady cash flow and can be paid monthly, quarterly, or bi-annually as per the rental agreement.
It is basically the creation of unique and new content and publishing that content on the internet. Creating a blog is a task that requires an upfront fund investment, time, patience, and a passion for creating content and learning something.
One can start blogging by creating an account on free blogging sites like WordPress.org, Blogger.com, Wix.com, and many more. These websites have pre-loaded tools that guide to creating a blog. Once created all is needed is to purchase a domain name and hosting to make the blog accessible to the public on the internet. People visit the website, read the content to understand and enhance their knowledge, while income is generated through engaging the audience on the blog.
Ways to earn from blogging:
a. Register the blog site on the Google AdSense
b. Affiliate marketing
c. Selling advertisement space on the blog site
d. Product selling: The key to earning a decent passive income is to create content on the topics which are trending or that bring some value to the audience.
5. YouTube or Podcast Channel
It is one of the popular ways to engage the audience. YouTube provides content through videos while podcasts use audio available to listen by the audience.
Both media took time and effort to reach out to the number of audiences while once established and become popular will help in generating a decent amount of passive income.
Ways to earn via YouTube or Podcast:
a. Affiliate marketing
c. Video advertisements
d. Selling Products
e. Brand campaigns
Along with the above-mentioned, there is a number of social media platforms that provide similar opportunities to generate passive income.
6. Asset Leasing
Generally people buy goods and products to make use of it until the purpose is fulfilled, after that these goods lie idle at the home, garage, or in the lot. These idle goods and products can be used as a source of generating passive income through leasing those assets to those who have a need for them.
For example, a person has an expensive DSLR camera, he can provide that camera on lease to the other person if he has the utility of it for that time period. It becomes a win-win situation for both the parties as the lessor gets the income and the lessee gets the asset for the use which may be far more expensive if he goes for the purchase of that asset.
It is one of the methods used to carry out for marketing and selling of retail products of the manufacturer or the supplier of that products by fulfillment of orders made by the customers. So basically the business or storefront acts as an intermediary that sells the products. The purchase is made directly from the manufacturer or from the supplier which delivers that product to the customer.
The intermediary decides the rate of the product while the actual supplier only delivers that product to the customer’s address. When the customer makes payment to the intermediary, then after deducting its margin and payment is made to the manufacturer or supplier of the product.
8. Online Course
Learning becomes easier with the online platforms and media that bring lots of content in the form of study materials. Creating an online course needs knowledge, expertise, and upfront investment.
One can create a digital course on any topic and upload it to the internet to make it available for the public to use. Income will be generated with every purchase. One can also write an E-book and earn from it.
9. Online Photos Selling
If you have a passion for photography and a camera you can sell high-quality photos on the internet. There are many websites that offer a platform that will allow earning royalties from it. Some of the websites that provide that services are Shutterstock, iStock, Getty Images, and many more.
10. Stake Crypto-Currency
Staking is a method to earn rewards on crypto-currencies by holding. The earnings were made over time through a staking pool that pays a certain percentage of reward upon the holdings. The disadvantage in crypto staking is that the staked crypto cannot be transferred or traded for a certain period of time.
11. Fixed Income Securities
These securities contain high yield saving accounts and certificates of deposits. These instruments require a lump-sum investment and have a fixed time period for which the amount will be locked.
These securities carry a rate of fixed payment which is paid to the investors’ on regular intervals i.e. annually, bi-annually, or quarterly according to the terms agreed upon. At the end of maturity, the principal plus return are both provided to the investors. These are the most common form of passive income generation method. The securities are provided by banks, financial institutions, and corporates.
Along with these mentioned 11 ideas, there are a number of ways through which passive income can be generated. Firstly, the method of passive income generation is identified and selected. Then an upfront investment and time is given to establish that chosen idea. To ensure success you have to stick to that idea until it starts generating a regular stream of passive income.
So, which idea will you opt for?
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He is graduate in M.B.A Finance, and owner of the financial blog “Saifwealth.com“. He started this blog to share his knowdelge in the field of finance and to help people understand and aware about the financial world.