Sources of passive income can help you earn extra cash for relatively little work. Nowadays there are many creative ways to bring in passive income
Though not the catchiest of financial terms, “passive income” is something worth your attention, especially if you’re working hard to save or get more cash. Passive income is the earnings you can get from a rental property or other enterprise which does not require continual direct involvement and attention.
Some businessmen say that income cannot be truly passive, noting that even leasing your property, for example, requires attention, systematic maintenance and timely improvements. Even still, there are a few tricks which can allow you to earn more money with relatively little effort. The following tips may put you on the right track.
Make Sure Your Savings Interest Is Interesting
The safest and most inactive way to boost your passive income is to allocate money to a savings account, if the rate of interest has a large enough margin over inflation.
By no means will this make you a millionaire overnight, but your savings would likely grow uninterrupted. Banks often offer to capitalise the generated interest, which makes your interest earnings increase each month.
If you consider depositing money in an account with a suspiciously high yield, make sure the sum you plan to invest will be covered by insurance payments in case your bank faces insolvency or license withdrawal. Research the deposit insurance legislation in your country to assess any possible risks.
Share Creative Content Online
Modern technologies have allowed creative people all over the world to share their content and convert their passions into passive income through blogs, YouTube channels and Instagram, among other platforms.
Internet giants such as Google, Amazon and iStock have pioneered new frameworks for sharing revenues with content creators. The key advantage of the blogging model, for example, is its extremely low cost of maintenance, because you create something you would enjoy doing for free. It does, of course, require computer skills, talent and an intimate understanding of your niche.
Online you can find plenty of tips on how to monetise your blog and generate income from advertising. The key recommendation for beginners is to start blogging on something you are truly passionate about and attract a loyal audience which would trust your expert opinion in a particular field. Bit by bit, you should integrate sponsored content or advertisement links into your blog.
If you consider blogging, then remember that providing value is at the forefront; otherwise, blogging would be a fruitless endeavour. You need to take care of your readers: they should not feel like you’re using them for profit. Do make sure you would honestly recommend the products or services you advertise.
Another way to make extra income is to sell your creative products, such as photos, videos, music, design projects, podcasts, books, and so on. Today you can find an abundance of platforms to do so.
Rent Out Your Property, Equipment Or Other Items
Whereas sale and acquisition deals with real estate require skills, initiative, time and professional help, letting or subletting your property from time to time could be an easier and simpler alternative to bolster your income.
If you are willing to dedicate your time to fulfilling management duties, including communication with tenants, financing property repairs and even chasing debts, then this source of passive income should suit you.
Extra space in your house or apartment, basement, attic or garage may bring some extra income from leasing it. You would still need to deal with management responsibilities and get along well with roommates, so this could in some ways be a good initial experience before diving into real estate investment.
Local online advertisement boards can help you calculate fair rental rates for your country and region. Some websites (such as Zilok or Avito) allow you to rent not only your space, but also various items, ranging from sound equipment to books and beyond. This requires no significant investment or risk-taking and earns you some easy marginal income.
Build An Automated E-commerce Business
If you have access to a reliable and unique, wholesale source of highly demanded goods, you might consider setting up an online retail shop. You can either launch your own website or use the tools of existing large-scale trading platforms, such as eBay, Amazon, AliExpress and Etsy, to name a few.
Although it takes time to launch at the beginning and considerable investment in wholesale supplies, your little e-commerce business may turn into an automated cash-generating machine, if you are ready to use the necessary software to automate most of your business operations and even hire responsible employees for delivery services. With e-commerce, success is based on choosing the right product niche and developing well-organised ties and collaboration with wholesalers.
Another e-commerce option which is more time-consuming, but also more creative, is selling handmade goods on your own or with a team. If you have talent and are willing to make quality products, there are innumerable online platforms for taking your wares to market.
Look For Local Opportunities
In an era of globalisation, the ability to stay local and focus on the environment around you can bring you some surprising benefits. Take a look at your neighbourhood and your town, talk to people, find out their daily pains and demands and ask yourself what product or service you can uniquely provide to improve their lives.
The trick is that your business niche may actually seem rather obvious: if, perhaps, your area lacks a kindergarten, then organise a daycare centre at your home and collect fees from parents. If the local grocery stores lack fresh organic produce, then team up with a garden co-operative to organise home deliveries of fresh fruits and vegetables to your neighbours’ tables. Maybe your neighborhood needs a dog-walking service or bicycles for rent, or perhaps students in the local library just need a snack or coffee machine – these are challenges easily met but often overlooked.
For example, an 82-year-old Japanese self-made billionaire, Yoshiko Shinohara, started her path to a nine-figure HR corporation in a 24 sq m, one-bedroom apartment: she opened a part-time work agency, striving to encourage women with children to continue career development.
Local problem-solving has the potential to turn into an automated passive income source, but you can also scale it up into a prosperous business, if you discover a way to harmonise value generation with foresight, persistence and passion.