Many friends around me have not yet discovered the power of having passive incomes. Whenever we encounter these two words, many people have no idea what does that even mean, and have no idea how powerful it is, to be able to save us to reclaim our freedom back.
When I said freedom, it simply means our rights to do the things we like, with the people we want, at the timings that we like, still can make money even WHEN WE ARE SLEEPING.
Your money is out there, somewhere working for you, to generates more than you invested, without your physical body to be there, hard-selling, 24/7, your money does not rest, it automatically generates more income for life.
The more good income ideas you have, the more passive money you can make.
Wut? Let me explain further.
What is Passive Income?
If you search google, explanation as below:
Wikipedia – “Passive income is generally defined as a stream of income earned with little effort, and it is referred to as progressive passive income when there is little effort needed from the individual receiving the passive income in order to grow the stream of income.”
Investopedia – “Passive income is earnings derived from a rental property, limited partnership or other enterprise in which a person is not actively involved, etc.”
1. Rental Income
For example, you buy a house, spend some money on renovation and put in some furniture, rent it out for other people who would like to stay in the area, it may be near to their workplace, very accessible to places.
People don’t mind paying you to stay in your house by paying you the rental. You take the rental to pay the bank loan. Perhaps it will cover all if not, it will help you partially of monthly repayment. Isn’t it a good passive income idea?
Well, some will say not everyone has the capital or the money to buy a house. Totally understand.
What other good passive income ideas?
There are a lot more ideas you can find in the business world, whereby you can invest a small amount of your money, and make it work for you without you to be there, and sacrificing you quality time with you family and friends.
2. Invest in other peoples’ profitable business
You can be bigger share sleeping partners or you can be a small share business partner. Some business has more than 20 owners, each of them earn as small as 5% to make up the sum to run a business. It could be a Food and beverage business, a boutique, etc.
Your invest amount can start from a few hundred dollars to a few thousand dollars. The Return of investment will be calculated in terms of the percentage that you contributed. Simple?
3. Bank interest (bad idea), any interest gain from investment activities
Putting money in the bank is a good idea only if the interest you gain, can beat the yearly inflation rate. This is very unlikely unless you have millions of dollars in the bank, and you can work out a good deal with the bank.
Owning some good company stocks can earn a yearly dividend payout from the company. Some company payout can easily beat the inflation rate and also your saving accounts interest from the bank.
a. Dividend from the stock market
Another way is to buy and sell stock in the stock market. Not gambling, no guessing, and speculation. I am not saying daily trading, roller-coaster market chasing game here. A lot of people have the idea of the share market is a very risky place to put our money in. Of course, we are not advised to buy unknown and sell base on hearsay.
What is good to do in the stock market is to only do what you have research, study and analyze. You don’t have to do what Warren Buffet does every morning, reading company annual reports, but we can have enough company financial information from some of the company’s financial websites.
Read some company updates and news, observing consumers’ behaviors when we are out. These are good enough for us to know is the companies that we invest are doing well from time to time.
Other potentially smart passive income ideas
4. Uploading images and videos to sell online – Shutterstocks, Gettyimages, iStocks, etc.
Take photos, videos, or create graphics, value contents upload to the internet, for others to purchase for their own usage. You can make a living by simply interested to take photos and videos by only having a good mobile camera. I’m not kidding. I have easily sold up to 50 images taking from my iPhone.
Of course, there are certain criteria that we need to follow before we upload our images and videos, we just have to make sure the image quality is high enough, give some relevant titles and descriptions, and that’s it. Your photos are being placed on the stock website as long as you can live, and the online market works 24/7, your assets are up there selling to the world.
Yes, even when we are sleeping. Click here to start now!
5. Affiliate marketing
What the hell is that? In layman term, commission based income. You help to sell other people’s products and get a commission from it.
This is a salesman job in real, but in the internet world, the things that you try to promote will be there for a certain period, base on the contents you write, the videos you posted, consumers will take their time to read and hear what you want to say, and decide if they want to buy base on what you recommended. Once they place an order from the sellers, you earn your commission.
Simple passive income idea?
Click here to know more
6. YouTube – Create value contents to help others
Yes, create contents and put up to YouTube, think of value contents that can help people, in terms of skills, mental help, entertainment purposes, as long as your channel is able to gain as many as viewers, you will earn some money, and the money is possible to grow as much as it can.
Not many people like to show their face, some even created a persona that without a face, with a horse head, or hire somebody to do the contents they think can attract more viewers.
Again, the videos you posted are going the stay there for a very long time, it will not expire. As long as the contents continue to view by people, it will help you to make money for a long term basis. For instance, teaching languages, cooking, sharing ideas of how to train your dogs so on and on.
What you can bring back today?
Passive income is the idea of making your money work very hard for you without you physically presenting yourself, you can be at anywhere around the world, doing anything you want, spend minimum care and time on our business.
The efforts that you put from the beginning, will work out automatically for you. The money that we made from there, is passive income.
There are a lot of ideas that we might not discover yet that can create our passive income.
What do you think? Please leave some comments below.