If asked to describe what our idea of real success was, most of us would not mention having a 9 to 5. As for me, I would envision sitting on the beach sipping a mojito staring at the vast blue seas with my feet in the sand as money in my bank account exponentially increases.
Take a moment to sit back, close your eyes, and envision what success looks like to you.
Don’t get me wrong, I appreciate a hard day’s work. However, I don’t want my only stream of income to be tied to it. If you ask most millionaires, they will say the key is multiple streams of income. Almost assuredly, they themselves would have several passive forms of income.
What is passive income?
Passive income is an income stream that takes little or no daily effort to sustain and receive. This does not mean there is no work involved. However, it does mean your income is not directly tied to the number of hours you work.
What are some examples of passive income?
1. Investing in rental properties
While this is a great way to earn passive income, most people are not prepared for the amount of work, time, and money it takes upfront. Ultimately, you need to determine costs and expenses related to the project, the financial risks of owning the property, and how much return you want on the investment. For additional information check out:
Develop a website, become a blogger, or social media “influencer,” promote third party products on your site, and get paid. Of course, you must attract a large enough audience for this to work. However, that can be done upfront. This can be as simple as adding a button to your site for users to click on.
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4. Dividend stocks
The income from stocks isn’t related to any activity other than the initial financial investment. Therefore, owning dividend-yielding stocks can be one of the most passive forms of making money. The idea of stocks can make novice investors nervous, but there are numerous free YouTube videos about investing. I personally watched “Five tips I wish I knew before I started investing” prior to beginning at https://www.youtube.com/watch?v=1R1ZIe9qb1s. I have personally had more than 50% return on my investment in 6 months. I did so little to make this money it feels wrong. This takes very little work once you have done your research and have made your initial investment.
5. Selling information products
Write a book or develop an audio course that can be sold on sites such as Amazon, Udemy, or SkillShare. Relax and watch the money roll in! The hard work was done up front, and the information will be available long term.
I have provided 5 fairly easy ways to generate passive income. However, there are plenty more including, peer to peer lending, high yield savings accounts, etc. Do your research, understand the risks, and start making money!
You may be asking yourself, why is an author blogging about passive income. Why not? As an author, I put in several hours of work to develop an information product that will be available on Amazon for years to come. While I may not be relaxing on the beach anytime soon, thank you COVID, I have at least begun my journey on the road to financial freedom.