Top 7 Passive Income Streams to Help Your Budget Out in 2023
In his iconic book Rich Dad, Poor Dad, Robert Kiyosaki talks about assets and liabilities. Assets generate revenue, while liabilities create expenses. In the book, he mentions that every single dollar you own can be turned into an employee, working towards making you even richer.
Still, how does one create these assets? How does one create passive income streams to improve their household budget and, eventually, become more affluent? In 2023, this task will be easier than ever. Why? Well, because you have more options than ever before. With that in mind, here are the top 7 passive income streams to help your budget in 2023.
- Rent your space
The simplest way to create a side income is to use the assets that you already own. Any real estate that you own can serve this purpose. You should consider getting one if you don’t have a rental place. You can virtually have someone else pay your monthly installments by getting a loan, buying real estate, and renting it out.
If you want a less risky approach with an immediate payoff, you can sublet a part of your home. Now, you don’t have to rent out your living space permanently. Instead, you can enlist on Airbnb and learn how to start an Airbnb management business.
In a scenario where you inherit the place, it might be worthwhile to renovate a bit before renting it out. There is a number of simple projects that could raise the cost of the rent.
- Create content
A person with a unique skillset or many great ideas is no longer limited to one or two profitable art forms. Now, you can pick any social media platform and start creating content. If you get a big enough following, you can monetize your content and create a passive income.
While making a sizable income can’t be done without some investment, the truth is that you can start rather modestly. A quality webcam and some editing tools can be enough. If you’re a reviewer, doing a simple voiceover over the footage of the actual product/event is the way to go. Still, as you grow, you might want to consider enrolling in courses and buying better equipment.
The reason why we list this as a passive stream of income is because, once out there, content is an asset that generates revenue indefinitely. This is provided that there is any income to begin with.
- Write an eBook
The best thing about writing a novel in 2023 is that you no longer need to look for a publisher. You can write a novel in Google Docs, buy a photo for $1, turn it into a cover in Canva (for free), and self-publish on Amazon Kindle Direct Publish. In other words, once the novel is ready, you can publish your e-book free of charge in a matter of minutes.
Just keep in mind that you’ll have to learn how to sell the book to make some real money this way. There’s a reason that on the cover, you never read about best-writing authors, only best-selling ones. Also, you should learn how to make a compelling book description, find the right keywords, choose the right cover, and much more.
- Create a course
It was never easier to monetize a skill or a knowledge set. In fact, on sites like Fiverr, you can find people teaching courses in video games. You can also teach people how to play a musical instrument or chess or let them in on your trade secrets.
However, starting a course is more complex than it seems. Also, just because you’re good at something, this doesn’t mean that monetizing teaching it will be easy. It would help if you learned how to structure a course and create/find reliable learning materials. Deciding how to price your course is also a major concern.
Lastly, if you structure this course right, you can automate a huge part of the learning process, making this income stream passive.
- Invest
Buying stocks that pay dividends is a straightforward method of creating a passive income stream. The process is quite simple – you make a one-time purchase that pays you back over time. While actively trading is also a great idea, you need to think about long-term value when it comes to passive income streams.
Nevertheless, choosing top dividend stocks is all but easy. The top advice here is to steer away from companies that are in debt and focus on long-term profitability. Finding a company with a healthy cash flow means finding a company that can afford to pay dividends.
Also, remember that the performance of the industry affects the company’s future, as well. This, too, is worth researching.
- Start a dropshipping store
In 2023, to make a living in retail, you no longer need to own a physical store. You don’t even have to have a warehouse or infrastructure. How? Well, through the concept of dropshipping. This means you’re buying a product from a vendor and selling it to a buyer without the item being physically in your possession.
To pull this off, you need to be a master logistician. You must manage your inventory levels precisely, own your supplier’s mistakes, and have an effective return policy. On top of it all, it’s essential that you provide excellent customer support.
- Become an affiliate marketer
As an affiliate marketer, you virtually have no investments. You’re not creating products or even ordering them. All that you’re doing is recommending products to others. That’s all. The best of it all is that there’s an unending list of products you could promote.
Those who decide to put some time into it may see serious profits. Still, you can dedicate so little time to affiliate marketing that (even with a full-time job and affiliate marketing activity) you still have a healthy work-life balance. The barrier of entry is relatively low, and, on top of it all, you get to be your boss.
Wrap Up
The best thing about this list is that it doesn’t end here. These seven ideas are merely there to help you start thinking in the right direction. Also, you don’t have to opt for just one of these ideas. Creating several passive income streams simultaneously can completely revolutionize your budget. It may even put you in a position where you can start thinking about quitting your full-time job.
