Stop putting all your eggs in one basket and figure out ways to make passive income.
With pay cuts and employers laying off people every now and then, it’s wise not to completely rely on your 9 to 5 job. It’s time you finally pick up the pace and look for ways to multiply your income streams. Fret not, we’re not here to complicate things, an easy solution is to earn passive income.
Building residual income is the easiest way to attain financial freedom without putting in too much effort. Initially, the process may require a lot of research but once you’ve created a solid foundation, you’ll be able to collect the fruits of your hard work.
In this post, we’ll be discussing some fool-proof ways to make passive income.
How to Make Passive Income
Here’s a list of ways to create passive income:
Invest in Real Estate
Diversifying your investments is certainly a smart choice but investing in real estate can take your passive income game to the next level. While we admit, becoming a landlord does come with its fair share of responsibilities, you’ll find it easier to manage property if you have reliable tenants.
At the end of the day, the benefits of investing in real estate greatly outnumber the inconveniences involved with it. Not to mention, you’ll greatly benefit from steady cash flow. Alternatively, if you’re not too thrilled about owning real estate, consider investing in REITs (Real Estate Investment Trusts). Investing in REITs is a great option if you don’t have to put up with the day to day hassle of handling property.
Also, if you’re having trouble managing your finances, you can also join crowdfunding websites such as Fundrise. So you see, there are a number of ways to invest in real estate without inspecting carpets and drywall.
Start a Drop Shipping Store
Raise your hand if you’ve ever wanted to create an online store but didn’t want to manage inventory!
Enter drop shipping. This is an amazing retail method that frees you from the hassle of managing an online store. If you have your own blog, you can manage your e-commerce store using the WooCommerce plugin.
Here’s how dropshipping works, a customer will visit your online store that’s stocked with products from different manufacturers. When a customer orders product, the manufacturer is notified and is then responsible for shipping the product while you collect profit. Of course, a percentage of your earnings may be deducted. Consider using a platform such as Shopify to build your online store.
If you’re serious about drop-shipping, you can sign up at Fulfillment by Amazon (FBA).
Invest In the Stock Market
Investing in the stock market is another way to build residual income.
To make things easier, consider investing in index funds or use the traditional route and handpick a couple of stocks. It doesn’t matter whether you opt for a retirement account or a personal investment account, you’ll be able to make money both ways.
What’s great about investing in stocks is that it’s relatively easy and does not require much effort (and that’s exactly why we’ve included it on our list! However, you may have to make a substantial investment if you want to see some real results. Other than that, it’s one of the easiest ways to make passive income.
Advertise Amazon Products
Amazon has an amazing Amazon Associates Program that you can use to advertise a number of products. This works by setting up product curation site, focusing on a particular niche. We suggest you opt for a profitable niche such as health and fitness or beauty and fashion for best results. Once you’ve set up a site, all you have to do is include Amazon affiliate links and you’ll earn a commission every time someone makes a purchase.
If you already have a blog with steady traffic, you won’t have to do much work. Simply throw in some informative content around products such as reviews or buyers guides and you’re good to go.
If you don’t have a blog, learn how to create a blog in 6 easy steps.
Peer to Peer Lending
While some people complain that peer to peer (P2P) lending isn’t passive enough, it’s still worth a shot. Thanks to peer to peer lending companies, you can now lend money to people. Here’s how it works: you create an account and lend money to people who need a loan. And since you’re lending money to others, you’ll earn via interest rates.
You’ll find that the market is saturated with P2P companies hence conduct plenty of research before you become an investor. Another great thing about P2P companies is that you can spread your investment amongst a number of borrowers. This’ll reduce the chances of risks, further securing your finances.
Create an App
Now we understand how this may be a little out of your comfort area, but if you have the technical knowledge to work your way up then why not! Plus, if you’re not an expert, you can hire someone to take care of the technicalities for you. All you have to do is come up with an amazing idea.
The key to success here is to think outside the box and conduct research about what’s trending in the market these days. A safe strategy is to create an app that’s designed to solve a pressing problem.
Ending Note: Ways to Make Passive Income
We hope you’ve enjoyed reading about our guide on ways to make passive income.
Is there something you’d like to add? Tell us about it in the comment section below!