Whether your eight-hour job is not enough or want to earn more cash for your wants, passive income can be a great way to generate an extra cash flow. With passive income, even if you have a primary job or suddenly become unemployed, you can have money coming in.
Either way, a passive income can provide you with extra financial security. And there are a lot of ways to earn passive income. If you want to know how to build wealth from nothing or limited investment, here are six ideas to start generating passive income.
- Start A YouTube Channel
There’s a rising number of Youtubers today. And why not? People love a good video. Whether you love to travel or are a gamer, you can take your passion for a subject and make videos about it to post on your YouTube channel. Then, you can run ads on your videos or use sponsors to generate your passive income.
At first, you will have to build a suite of content and draw an audience. However, as you become more popular with engaging video content, you can create a steady income stream over time. The more unique your area of interest or voice and the more engaging your contents are, the more likely you get fans to grow your YouTube channel and become a good source of income.
- Write An E-Book
An e-Book is another option for passive income, allowing you to deliver good value and information to readers.
Writing an eBook allows you to take advantage of the low cost of publishing. Also, you can leverage the worldwide distribution of Amazon, which can get your book seen by millions of potential buyers.
E-books can be short about 30–50 pages, and some are even shorter and can be relatively cheap to create since you rely on your expertise. You can quickly design the book on an online platform and even test-market different price points and titles.
- Affiliate Marketing
Affiliate marketing is growing in popularity and is considered a passive income source. Website owners, bloggers, or social media influencers promote a third party’s product by including a link to the product on their site, blog, or social media account.
The affiliate marketer earns a commission if a reader clicks on the link and buys the product. However, it will take time to create content and build traffic, as in the previous options. Also, the commission can range from 3-7%, meaning it will take significant traffic to generate serious passive income.
But, if you’re popular with a good following or have a more lucrative niche, then you can make some serious money with affiliate marketing.
- Sell Photography
Do you love taking photos? Selling photography online can be a great opportunity. While it might not be the most obvious place to set up a passive income, if you have the photography skills, you can sell the same photos over and over again like eBooks.
To do that, you should work with businesses like Shutterstock and Getty Images. You need to license your photos to be used by users who download them. The platform pays you every time someone buys and uses them.
Part of the value of licensing or selling your photos via a platform is that you can scale your efforts, particularly if you can offer pictures in demand.
- Invest In Rental Property
If you have enough savings, you should consider investing in real estate. As one of the smartest moves you can make, buying a building and renting it out allows you to create passive income for the long term. You can also buy a duplex so you can live in one unit and rent out the other.
While buying a building and managing the property can take money and time, you can always hire a property manager or real estate investment companies that can make it simple to find, buy, and manage investment properties.
- Open A High-Yield Savings Account
You won’t even have to leave your home to make money with this option. If you have money to set aside, you can earn a higher annual percentage yield when you deposit it to a high-yield savings account.
In addition, most of these kinds of savings accounts have low or no minimum balance with zero fees. In general, a high-yield savings account will give you better earnings than holding your money in cash or depositing it in a non-interest-bearing checking account.
Just make sure to research the top savings accounts available to you. And confirm that the bank is backed by the Federal Deposit Insurance Corporation (FDIC) and within limits to ensure that your principal is safe.
Take Away
That’s it! These are just some of the best ways to generate passive money. Earning passive income can be as simple as investing your money or as involved as creating an eBook or using your skills.
Depending on the amount of passive money you want to come in every month, you will have to try more than one passive income stream to reach the financial freedom that you’re after.
