There was a time when having multiple income streams was considered a luxury. But with the current state of the world and ever-rising inflation, various streams of primarily passive income have become man’s most significant necessity. Emphasis on passive because, yes, you want to earn money from different sources and by different means, but how many hours do you have to spare in a day to do all these?
What is Passive Income?
Passive income is the income you receive after an income stream has been established and does not require constant hands-on work. This however does not mean it is always easy. The conventional way of earning money has always been an exchange of time or effort for money. But with passive income, you could have money coming in even when you are not paying attention.
Benefits of passive income
Passive income can change anyone’s life, and I will highlight some of the marvelous benefits of passive income below:
- Passive income gives you freedom: This is a personal favorite because I believe that whoever is in control of my time is living my life for me, even if it is just a couple of hours. A conventional 9-5 workspace consumes eight hours of your time daily. Let’s not even get started how much of your time is finished if you work two jobs.
This is where passive income breaks in to actually rescue you from the shackles of time jerkers. Like John Wooden says, “Don’t let making a living prevent you from making a life.”
With passive income, you can dedicate more time to doing things you love and spending time with people you care about. It is also very easy to achieve your goals with passive income. Passive income gives you the freedom of time and we all know that time is of the essence. Time is our greatest asset. Hence, passive income pays you money and time.
- Improved financial stability: Passive income alleviates that paycheck-to-paycheck lifestyle everyone dreads. With passive income, you would be less reliant on a paycheck that comes only once a month. What is the fun in working round the clock and only being rewarded 12 times in a whole year when you could receive money from passive income on a daily basis? It is overwhelming trying so hard to extreme-budget your way through to your next paycheck if you ask me. With passive income, it seems like money is always available when you need it because most times, it is.
- Work from anywhere: We all know that with a regular 9-5, you only get to take long breaks off during your leaves. But in most cases with passive income as your source of income, you can become a digital nomad and work from anywhere in the world because you are not physically and actively tied to your business.
- More financial margin: What everyone wants is to be able to have a considerable margin between their expenses and their income to help save and invest for the future. When passive income brings in a considerable amount of money, that money can be used to build more wealth. With a margin when what you earn is very far from what you spend, everything becomes a lot easier financially.
- It lets you do what you actually love. A lot of people are stuck in jobs they don’t like just to make ends meet. Many people exchange their precious time for measly pennies doing menial tasks like online paid surveys when they could earn so much while pursuing their passions. Passive income lets you have the financial freedom and time to do things you actually love because this time, you do not have to do just anything for the sake of earning.
How to make passive income.
Now that we have seen the benefits of passive income, let us see how to make those benefits your benefits.
Passive income is a no-hands-on means to earning does not make it a get-rich-quick scheme. You do need to put in the work with consistency and discipline to establish what would eventually become your steady income.
Creating a business that brings consistent earnings would be cultivating your money tree and doing everything it needs to grow into where you can pluck from non-stop.
So what are some things you can do to earn money passively? Below, I have listed nine actionable and doable passive income ideas anyone can do from any part of the world.
- Create a YouTube channel: Doing the initial work and reaching the threshold for monetization can be really tedious and discouraging. But if you know what you are doing and get the hang of it, you can monetize your channel and start earning money. Some people struggle for years before they finally make it on YouTube while for some others, it just takes a couple of months. A sure way to maybe “hasten” the process is to produce extremely quality content. The focus on quality content here is not content produced with high-tech gadgets. Well, that might help but that is not the whole point. Quality content is something that makes the life of someone better or easier when they consume it. If you create content about things that people really want to know and are searching for every day, and these contents are value-filled with helpful information, getting to that monetization threshold will come a lot faster than people who create content by just beating around the bush and delivering no value. Valuable content can be informative, educational, or entertaining. People still watch decade-old content on youtube because of the value they contain, and for as long as people tend these contents, the creators get paid a lot.
- Create a course: Selling courses and other digital products like ebooks are another excellent way to create passive income that would pay you greatly. If you made a YouTube channel and have already built confidence in your audience with your freely sharing content, they would pay you their money for even more valuable content. Think of it this way, if free content could have so much helpful information, how much more what do they pay for? That is what they would think in their thinking would be right. You can publish Courses you create on your website or education platforms like Udemy and Skillshare. Even Youtube these days has subscription fees to see some reserved content. Create courses around what you are good at and watch it make bank even in several years to come.
- Affiliate marketing: For an unknown reason, many people give up on the thought of affiliate marketing. Affiliate marketing is one thing that can easily make you much money passively if you do it right. Imagine being paid for items you advertise without ever physically seeing these products. In affiliate marketing, you do not need an inventory; you are not involved with customer service and don’t worry about packaging or even delivery. You probably have been doing affiliate marketing for free unknowingly. With affiliate marketing, you earn a certain amount as commission each time someone buys a product or service through your link or discount code. You have often shown your friends where you got your shoes so they can get theirs. What you have done is affiliate marketing. If you had an affiliate link to those shoes, you should have made some money from your friend’s shopping. Again, if you have an audience from your blog or YouTube, you already have a considerable crowd of people to market your affiliate link to. Having a community you have built comes with endless possibilities.
- Invest in the stock market: Nobody ever got wealthy by leaving their money dormant in savings accounts. Investing is a way to put your money to good use. You can sell and take your profits when stock prices appreciate over time. An even more sustainable way to make money in the stock market is by investing in dividend stocks. Dividend stocks are stocks that pay investors a part of their earnings periodically, most times quarterly, while the investors’ money is still invested. You may not earn a lot at first with little investments, but with time if investments grow, dividends grow. Another way to increase dividend earnings would be to compound paid tips by reinvesting them. With time it grows into a sustainable income. Long-term dividend investments like these can be set up as a retirement plan where you can receive dividend payments as much as $2000 monthly from dividends alone.
- Sell your photography: If photography is something that you have a passion for, then you can make money while also doing something you really love. As a photographer, you can take nice pictures and sell them as stock images on stock image websites, to magazines, and as printed wall arts to your clients. You can start with your mobile phone and upgrade your gadgets as you earn more from your passive income streams.
- Sell digital arts: You might wonder who buys digital arts and for what. Hello! Have you heard of NFTs? A lot of people are making lots of money in the NFT space and now would be a good time to get into it as a digital artist. Soon there is going to be a whole lot of opportunities for digital artists with the emergence of a Metaverse. If you have been designing for leisure before now, you might want to consider also turning what you love into a new stream of passive income.
- Rental income: If you have an unused space in your house or you travel out of your home quite some time, renting out your home for that period earns you money. Companies like Airbnb have made it super easy to lease out your home to clients. You do not need to purchase new properties for this. If, however, real estate is something you are interested in, purchasing homes for lease is a very good way to make passive income.
- Create an online thrift store to sell things you no longer need, a good way to make money off your decluttering exercise would be to create an online marketplace where you would sell them. Once again, if you created a blog or youtube channel, your community/audience would shop from you since people follow who they are interested in or share the same interests with. If people follow you for your fashionable style or for your home aesthetic, chances are they also want to shop where you shop. And if they are able to buy them from you at an even better price, they are happy to shop from you and you make money from decluttering. Everybody wins.
- Create a dropshipping store. Dropshipping stores might be difficult to get a hang of at first but it sure gets better. It is a little similar to affiliate marketing but without the use of links. In drop shipping, you create an online store and “stock up” your store virtually with a price above what the seller sells. For example, if a pair of shoes cost $50 on the supplier’s site, you can set your price at $70. Each time someone shops in your store, you forward the order to the supplier who then procures the order. You as the dropshipper take your profit and pay the price which the seller has set to them. From the example above, you as the drop shipper take your profit of $20 and send $50 to the supplier.
Passive income will literally change your life and can do so in a very short time if you diligently follow it through. Consistency and discipline are what bring the highest yields eventually. The very amazing thing about passive income is that your one-time effort can produce a lifetime of earnings.