Creating a stream of passive income isn’t all rainbows and butterflies. It can be time-consuming and take a lot of work. However, once that initial work is done, it’s gravy.
Making money while you sleep sounds wonderful, doesn’t it? Most people would say it’s impossible. What if I told you, it is possible, would you believe me? Passive income is an ongoing cash stream that doesn’t come from employment. It requires little or no daily effort to maintain. It’s very different from active income which is from working a job that pays salaries, tips, or commissions.
Creating a stream of passive income isn’t all rainbows and butterflies. It can be time consuming and take a lot of work. However, once that initial work is done, it’s basically gravy.
So, now that we understand what it is, how do we get it?
Rent out unused space. This is one of the easiest ways to create passive income. Maybe you have extra room in your house or your garage and could rent out some space. Neighbor.com is a great place to start. https://www.neighbor.com/ Or maybe you have a vacation home or an RV that you don’t use regularly. Try listing it on Airbnb! https://www.airbnb.com/ You will be surprised at the amount of money you can make.
Open a high-yield savings account. It requires very little of your time. Rather than keeping your money in a regular savings account that pays little to nothing, or keeping that stash under your mattress, open high-yield savings like a money market or CD. I personally love Wealthfront, and their savings account pays 4.30% APY with no account fees.
Start a blog or YouTube channel. Do you have a great idea that appeals to a particular audience? If your content is engaging and gets enough daily traffic, you could sell ad space on your blog or ad spots on your channel. Then just sit back and enjoy the income stream. Just keep in mind there is a lot of competition out there, so your content needs to be relevant, and you may have to create additional blogs/videos depending on how much income you want to earn.
Invest in real estate investment trusts (REITs). The idea of investing in real estate may sound daunting to some. Does the thought of being a landlord sound awful? If so, you can still invest in real estate without all the headaches. A REIT is a type of investment that pools your money with other investors’ money to buy properties—it’s basically a mutual fund that buys real estate instead of stocks. You can invest in a publicly traded REIT, which is listed on a major stock exchange, by purchasing shares through a broker. You can purchase shares of a non-traded REIT through a broker that participates in the non-traded REIT’s offering. You can also purchase shares in a REIT mutual fund or REIT exchange-traded fund.
Write a book or a guide. Do you have a stack of amazing family recipes? Do you love to tell your children bedtime stories that you’ve made up? If so, turn that content into a product. There are self-publishing options everywhere and several of them are free! Kindle Direct Publishing (KDP) is a great tool to turn that pile of grandma’s recipes into an E-Book. You could see those royalties come trickling down in years down the road.
Buy dividend stocks. A dividend stock is a publicly traded company that regularly shares profits with shareholders through dividends. These companies tend to be both consistently profitable and committed to paying dividends for the foreseeable future. To collect dividends on a stock, you simply need to own shares in the company through a brokerage account or a retirement plan such as an IRA. When the dividends are paid, the cash will automatically be deposited into your account. Pretty simple and a great way to make passive income.
Winning the lottery isn’t the only way to earn money with little effort, and let’s face it, the chance of winning is almost impossible. The goal is to achieve a steady flow of cash without a full-time job. It is important you know that you will need to put in some work upfront. There are so many more ways that you can apply your talents and interests to start earning passive income. A financial coach can help you get started. Call, text, or email today for a free consultation.
If you don’t find a way to make money while you sleep, you will work until you die.
Warren Buffet
