8 Passive Income Ideas That Can Help Grow Your Wealth
Diversifying your income stream in times of economic uncertainty and job insecurity can be a profitable and practical means of gaining more financial freedom. It’s also a way to save up for your retirement so you can stop working at an earlier age.
There are numerous opportunities that you can capitalize on without having to spend too much of your own money to get started. Earning a passive income is about finding creative ways to increase your cash flow that supplements your primary salary. It mostly involves doing small and simplified tasks that you can do in your extra time.
To succeed in generating extra income you’ll have to do extensive research into any project that you’re keen on trying out. Consider the risks and benefits of each idea and approach them as practically as possible so you don’t fall for the get rich quick mindset. Then you can choose the most ideal and feasible plan for you.
If you’re thinking of other perspectives to expand your financial cash flow, here are 8 passive income ideas to help you build your wealth this year:
- Invest In Real Estate
Real Estate investments have gained momentum over the past decade as access to investment technology and education increased. Many new investors choose real estate to supplement their primary income because it can be a lucrative venture to make money from the housing market without having to deal with tenants as landlords do.
You can begin your real estate investment journey through real estate investment platforms, such as Concreit, Fundrise, Diversyfund, Roofstock, and Streitwise. They’re a simplified and convenient way to manage your investment portfolio and keep real-time track of the funds you’ve yielded. If you prefer a more hands-on approach, you can consider renovating undervalued investment properties and then reselling them.
- Sell Stock Photos To An Agency
This is a fun and creative way to add to your income stream if you have photography skills and time for photoshoot planning. The first step in selling stock photos to agencies is to check their websites for the technical requirements needed for each photo and the type of photo scenarios they accept. You can do this to make sure you have the capability to meet their demands. From here you can start planning your photos and gather the necessary equipment to complete the job.
Gather your friends or family members to pose as your subject models and direct them for each image sequence. A key tip is to try and create a series of photo scenarios. Include non-branded products, items and props where you can. These could make your photos more valuable to stock image agencies who are willing to pay more for high quality images with realistic looking situations. Alternatively, you can take pictures of nature, landscapes and cities if you don’t want to include people in your stock images.
- Try Money Making Rewards Apps
This method is a means of making extra cash with minimal effort and involvement. Also, the best part is many of the apps are free to use and have an array of programs for you to choose from. There are online shopping programs that feature signup bonuses and cash back rewards of up to 40% of your purchases. Additionally, you can opt for taking online surveys to accumulate points and earn money using a tier system.
Some of the highest paying apps do require a little more in-person involvement such as mystery shopping. Companies on the application will hire you to shop at one of their retailers to secretly inspect the quality of services and products, then you need to report back to them to earn your payment. Grocery shopping and delivery is also another possibility on these apps where you buy and deliver food on behalf of a company’s clients. Other money-making app programs may include playing online games or some data-entry opportunities.
- Create An Online Course
If you have more time to dedicate to making a passive income, you can create an online course with a reputable learning platform. It’s an easy way to make a profit by selling your skills, knowledge, and trade. Think about the one subject choice that you’re best at and could skillfully create learning materials, such as pre-recorded lectures, readable step-by-step guides, and some hands-on visual or practical exercises.
If you’re considered an expert in your field, you can forgo hosting your course on a learning platform in favor of your own website. This will enable you to earn all the money from enrolled students rather than losing some to processing fees on host sites.
The most ideal approach to start creating your course is to do extensive research on your chosen subject. This can give you ideas on how to divide the knowledge into sections as part of your lesson planning and course outline. At this stage, you can film your video lectures and compile the course material before sending it in for review. Within due time as students sign up and refer your course to other people, it can bring in more additional income.
- Start A Dropshipping Business
Building your own online store is the best e-commerce entrepreneurial technique to bring in more income. Here is where you can sell products without stock or inventory. In this case, you will be the middleman between a customer and a wholesale supplier of a product once it’s ordered from your store. You can either work with a dropshipping platform or choose your own supplier.
Just the same as any business, you’ll need to market your store to stand out from your competitors. This is where your primary focus should be. Then, to make sure you’ll be making a profit from each sale you’ll need to set a standard retail price for your products. You can do this by weighing the wholesale price you’ll be paying to the supplier against shipping costs. The difference between how much you’ll be paying and what the customer pays will be your income for the sale.
- Consider Affiliate Marketing
Another way to earn passive income is through affiliate marketing. This is where you get paid a commission for selling or marketing products on behalf of a company. You get paid a percentage of the original price each time someone buys the company’s product through your efforts and referral.
The simplest way to start affiliate marketing is by selling to your own network of people. These can be friends, family, and co-workers. You can then branch out to your wider community through social media or localized ads. Most affiliate marketing programs work with a reward system that incentivizes marketers. These can be performance bonuses where you can earn more commission by completing a large volume of sales in a short timeframe.
- Rent Out Your Home
A short-term strategy to earn passive income that you can easily opt-out of any time is renting out your home. There are two approaches to this: you can either rent a section of your home or spare room and share amenities with a guest or rent out the entire house seasonally when you go on vacation. You’ll be in a better position to rent out if you own a separate property such as a townhouse or a cluster home.
Due to the many aspects involved in renting your home, it’s advised that you do research on the rights and responsibilities of being a short-term landlord. This can demystify the rental platform process and give you an understanding of what to expect from tenants. It’s also a way of determining the value of your rental, such as specific rates to charge if you’re near a tourist area or during the summer months.
- Utilize Social Media Sponsors
Social media influencers have skyrocketed their passive income just by doing what they love and gaining a large number of followers. If you have a knack for making viral social media content, then consider utilizing sponsored posts to earn you a second income stream. This will initially require you to build your online following and increase your engagement rate to attract sponsors.
To grow your social media profile, you should aim to consistently post high quality content that’s trendy and caters to a niche market. It can be based on your hobbies, interests or even your own personality as there is an internet community for every interest you can think of. Brands will start noticing your account once you reach about 1K followers as a micro-influencer and could then pay you to feature their product in one of your posts.
Conclusion
As you’ve seen above, there are many perspectives you can take to pull in more money for your wallet. Most of them involve tools that you already have access to such as mobile phones and an internet connection. Since technology has played the biggest role in making passive income possible, it should be your primary asset.
When looking for more suggestions and promising ventures, don’t be afraid to explore what any market has to offer you. If you’re willing to chance some calculated risks and stay dedicated to your idea, you can be sure that your bank account is likely to grow in future.Â
