17 Passive Income Ideas for Automating Your Cash Flow
Would you deny yourself a chance to take a winning lottery ticket if someone handed it to you?
That would be extremely foolish, right?
So, why aren’t you finding passive ways to monetize without having to rely on your active job?
After all, passive monetization is considered like a guaranteed lottery ticket that pays you forever.
Passive income is an income source where you earn money while you sleep.
Sounds like a scam?
Well, this isn’t an instant get-rich scheme or an upfront payment fee to a company that guarantees 5-figure earnings every week.
In a passive income source, you get to invest your time in starting a stream of income and you gradually grow the sizeable profit it generates.
Let’s learn a bit more about what passive income really is and what it can do to your earnings.
WHAT IS PASSIVE INCOME? WHY SHOULD YOU INVEST TIME IN IT?
Passive Income defined
Passive income is income that is generated when a person is not actively involved in the job.
When an employee earns money in a company, it’s said to be active income since the employee in question spends the entire time in the office doing the tasks of the organization.
In passive income, the employee can work at his active job while generating income on the side without any constant supervision.
Passive earnings are popularly associated with investment stocks, lottery winnings, retirement pay, etc.
The hardest challenges for setting up a passive income is the initial phase.
Many people are usually turned off by the fact that they have to put in efforts for something that might or might not work.
In this guide, we will show you surefire ideas of how you can start earning passive income within a few days of time.
The Benefits of Passive Income
Once you’ve setup a passive income business, you don’t need to actively monitor it.
You save time and generate an additional source of income without working on it.
Say you write a book and put it up on a marketplace, the book will be on the marketplace for as long as possible and continue selling without your interference.
Here are 3 benefits of passive income —
- More Time for Things. Let’s say you work an average of 50 hours a week and earn a total of $3000 during this time. If you had a passive income generating $1500 during the same week, that’s an addition of 25 work hours that you didn’t work but still managed to earn. In this way, passive income can allow you to gain that much needed rest without having to overwork your way to earn the extra bucks.
- Live Anywhere. The best perk about passive income is the fact that you don’t actively report to duty at your place of employment. The money generated allows you to stay in your dream location across the world. Many people are constantly finding ways to monetize their income passively, so they can spend their time traveling and doing things that they love.
- No Limits. Yes! With passive income, there aren’t any limits to how much you can earn and once you start a passive income, you’ll be sure to open up other sources. Unlike a day job where you earn a fixed pay of say $300, in passive income the money generated can be astronomically high. In 2013, Warren Buffet earned a staggering $37 million in a single day.
Everyone Must Have a Passive Income Setup
In the modern times, every professional should have a form of passive income to ensure they live the good life.
By generating a passive income, you use the money to save, insure, or invest while your active income takes care of your day-to-day affairs.
Passive income is great for students looking to pay off their student loans as passive income allows them to earn money on the side while they attend classes.
One of the biggest audience for passive incomes are single moms, who find it hard to find a job and have to take care of their child at the same time. Passive income is a boon to single moms as they can become independent and give the best care to their kids.
Many notable businessmen such as Jeff Bozos, Elon Musk, Tim Cook, etc. have invested their earnings in various other companies to build their sizeable net worth over time.
If successful people are doing it, there is no reason for normal folk not to when searching for an additional source of revenue needed for that much needed holiday vacation.
17 AMAZING IDEAS TO GENERATE PASSIVE INCOME WHILE YOU SLEEP
Photography is a great passive income, all you need is a professional camera and a trip around town snapping photos of nature and artistic images that peopleuse in their blogs and websites.
The best part about photography is that it’s a relaxing profession that allows you to spend time outdoors to capture the best of nature and what the world has to offer.
It allows you to travel and still make money without having to be actively involved behind a cubicle desk job.
2. Publish an eBook
Whether it’s technical writing or creative writing, people are always looking to learn new skills and eBooks are a popular source of knowledge.
If you have an expertise in your current field such as — engineering, software development, grammar & vocabulary, etc. then convert your talent into a passive income stream.
Amazon Kindle offers experienced professionals and authors alike, to publish free eBooks on their platform. You get a flat royalty paid to you every time a buyer makes a purchase.
It’s essential to write good content to promote yourself as a reliable author to succeed in this. Once you’ve successfully published a series of books, you can continuously earn income through the sales even when you’ve stopped writing.
3. Comparison Site
A comparison site is where you put together two similar products and conduct a review and a breakdown list summarizing their advantages and disadvantages.
The whole purpose of a comparison site is to provide readers who are looking to purchase a product with informed knowledge in making their buying decision effortless.
Creating a comparison site requires a website and every time you write about a product you need to include certain factors such as —
- Feature list
- Advantage column
- Disadvantage column
- Rating system
- Videos (optional)
- In-depth breakdown and analysis of product written in an article format
- Any other necessary comparative sections that can help the customer
4. Lending Club
Let’s say you’ve set aside an amount from your monthly earnings to invest in your future.
Which investment is likely to fetch you a large ROI?
Depositing in banks is likely to gain a 3-4% interest rate annually, which is quite low. A lending club, on the other hand, fetches up to 10% every year.
A lending club operates on a peer-to-peer lending platform where you offer loans to people in need and they pay you the interest you’ve asked for.
The potential drawback of a lending club is if you’ve made a bad investment against a lender that can’t repay your amount, you lose the principal amount. Hence, it’s necessary to equip yourself with knowledge and utilize platforms such as Upstart and Funding Circle, that provide legitimate lenders with a performance score attached. A higher score means the lender is good for a loan and you’ve got a higher chance of being repaid along with the interest.
5. High Yielding Savings Accounts
Plain old savings accounts may seem like a boring option but consider the risk-to-reward ratio and they still happen to be the safest investment in the world for your money. The famous line “Slow and steady, wins the race” is an apt way to describe a savings account. Although with the digital age, you now have a choice of opting for online banking with a high rate of interest for your money.
Online banks don’t have the high cost of paying for infrastructure and hiring employees, hence they provide up to 14 times the average interest that an average bank would pay out. This is the best option on the list if you’d like to secure your money without taking unnecessary risks.
6. Index Funding
Index funds are similar to the way mutual funds work, in that you invest in the stock market and earn passive income.
For example — If you were to invest in the general market stock via index funding, you don’t have to worry about replacing your portfolio, handling your stocks, or any kind of supervision. All of this is done by a fund investor who manages funds on your behalf.
To get started in index funds, E*TRADE is a popular website for investors to gather and invest their money. There are plenty of guides on the website for newinvestors to learn how to invest their money wisely. The site also provides traders with its own trading platform for a live trading experience.
7. Robo Advisors
No, it’s not a mini robot that follows you around the house giving you advise on your money.
A robo advisor is a software where an algorithm is provided to manage your investments and the rest is done on its own with no inference needed from you.
Instead of individually choosing funds and stocks, the algorithms inserted give you the best rate of interest and the least risk possible and invest in a diverse range of funds.
Robo advisors can be automated to conduct trades to reduce your taxes, this process is called tax-loss harvesting. Two preferred leading sites for picking your robo advisors are among Wealthfront and Betterment.
There is a fee involved for using their services, but in the long run, the profits are astronomically larger than the small charges.
8. Cash-back Rewards
If you’ve got a banking account, then you undoubtedly are aware of cash-back rewards that are offered on your debit and credit cards.
Many cards offer anywhere from up to 1-7% cash-back rewards based on your purchase.
This is money that you earn for by purchasing your groceries and dining options without really changing your lifestyle.
Consider this — your card offers you a 10% cash-back on fuel or air tickets, fuel is something that you obviously require on a monthly basis, these savings will soon add up to provide you with passive money that you haven’t accounted for in your expenditure book.
And if you’re a regular business class flier on a premier airline, the charges would be economical in consideration to paying the full amount.
Here’s a list of the top 7 credit cards that provide the best cash-back benefit.
9. Affiliate Marketing
One of the best ways to earn passive income is to promote products that are already on the market. Companies are ready to pay you a share of their profits for sending customers their way.
Consider playing the role of an advertising agent, except within the comfort of your home, write an article about the necessary products and provide your valuable input to your readers on what makes the product an exceptional purchase.
The income you earn from affiliate marketing is endless, it all depends on how good your coaxing skills are and how loyal your readers are.
10. YouTube Videos
Creating YouTube videos to monetize is quite common and an effective way to earn passive income.
You can earn ad revenues through Google AdSense, every time a viewer watches your video, several ads are played during the duration of the video, based on this your earnings are allotted.
Another popular way is by advertising products through your videos and gaining an audience either for your product or through an affiliate means.
Videos can include helpful tutorials, guides, product reviews, opinions, comedy shows, news broadcast, etc.
11. Online Course
Who doesn’t want to seek knowledge and grow from learning? Courses are one of the best ways to monetize your passive income.
All you need is a laptop, recording equipment, and the will to succeed and you’re set.
Udemy is a marketplace for courses with plenty of professionals creating their own systematic courses to teach students in professions they excel in.
Become a teacher, except you don’t really go to a classroom, the class comes to you. Courses can include programming courses, English vocabulary, foreign languages, motivational thinking, fitness, trading, etc.
If you’re working as a professional in a company, why not teach the expertise that you already know to new recruits looking to follow your path.
12. Produce an Audiobook
Gone are the days when people sat around in a room all day with a book in their hand.
These days modern professionals tend to multitask while listening to an audiobook and performing their daily work.
Audiobooks work similar to eBooks except instead of writing you need to be able to communicate well.
If you’re a public speaker or someone who is noted to have remarkable communication skills, then gaining income through audiobooks isn’t going to be a challenge.
Alternatively, you can hire a voiceover artist or a public speaker from Fiverr and pay them a fee to convert your books into audiobooks.
You can also utilize websites such as ACX to convert your audiobook for free. Proceed to sell your audiobooks on recognizable platforms such as iTunes and Audible.
13. Develop an App
Applications require specialized knowledge in their respective programming languages.
So, if you’re a software developer or programmer working for a company, creating an app in your free time for either a smartphone or website can earn you some much needed passive income.
However, if you’ve no idea on how to write code, don’t fret — Codecademy is a website that teaches code for free in an interactive environment.
Applications are downloaded every day by millions of users around the world, if you create an app that offers value to people such as a free weight-loss analysis, diet planner, an interactive game, etc. then customers will continue to buy your application and you gain the profits for something you never have to create again.
14. Real Estate
Investing your money in buying a property is one of the most important things to do in life.
You gain the advantage of having a housing space for as long as you live and if you decide to rent it out — you make a passive income as long as someone resides.
There’s another way to rent and stay in your own home without having to have two individual properties.
If you own an extra bedroom, simply convert it into a homestay for travelers looking to spend the night.
Travelers prefer utilizing a room for the night over checking into an expensive hotel and you can also utilize platforms such as Airbnb and Housetrip to list your premises.
Did you ever have a knack for singing? Or have people from your social circle commented about your lovely singing skills?
It’s time to monetize your voice.
You don’t need a music label or a high-profile manager to back your voice to become a popular singer.
In the digital age, listing your audio tracks on websites such as Sound Cloud and Audio Socket is enough for people to try your voice out and follow you as a vocalist.
If you’re talented and lucky, you could get a record signing depending on your vocal tones. iTunes is another format to sell your recording tracks.
16. Niche Websites
A niche website is a site that provides information about a particular category. Niche websites are built with one thing in mind — engaging with visitors.
Let’s say you create a banking website, with the niche related to information of accounts and providing help to customers.
By writing articles on the benefits of each account of a bank or how-to login to the platform, you receive traffic from search results pointing to your website.
The more people find your article helpful the more ad revenue you site generates. Traffic source is the single most important component and one can improve this by investing in digital marketing and SEO tactics.
17. Online Store
Every one of us has a dream of selling our own merchandise, the problem comes down to funding our dream business.
Most of us fear that if our business fails, we waste our entire lives trying to get back up from our losses. This is untrue, online stores are a great venture and all you need is a simple web hosting platform such as Bluehost or In Motion.
Once you’ve acquired a domain name, your store just needs a theme to go along with it and you’re set. Choose between physical products or digital products, if you’ve got physical products to sell, then you need a logistics partner.
IN CLOSING: INVEST IN PASSIVE INCOME TODAY
With 17 of the best executable passive income strategies, what are you waiting for? Don’t wait for the right time to begin your passive income journey, today is the right time.
Every day you miss out on starting your venture, you lose money. In fact, you are losing money right now.
By earning more, you work lesser in your active job and spend more time taking a vacation and traveling around the world experiencing various cuisines. Passive income lets you live out the dream that you’ve always wanted.
Every company or an individual creating their business plan essentially wants the same thing: their …