Some people hear the phrase “passive income” and imagine a perfect life with little or no work and a lot of money, and the first thing that comes to their mind is making money while you sleep!
It's no secret, passive income is one of the most debated and sought-after elements of personal finance. And for good reason; It is building massive wealth and escaping from a lifestyle from one paycheck to the next, a lot of effort. As passive income can have a very positive impact on almost any financial situation.
Even if you earn a very high salary, you are limited in how much you can physically do and what extra effort you can put in each time.
Thus to achieve financial freedom, you have to earn more of your income from other sources like interest, dividends and other capital gains. This is where passive income comes in.
One fact we know, is that we all have the same 24 hours in a day. How do we combat this reality? But wait, the answer is simple; By putting your money to work for you instead of trying to work as many hours as possible for more money.
So if you dream of retiring early, earning enough money to cover your needs and more of them with minimal effort? Yes, these are some great dreams. But it does come in handy if you can start thinking more than just your monthly salary and being financially savvy.
There are different ways to do this. You can use digital platforms, investment mechanisms or even outsourcing. You will find all the facts, secrets and sources of passive income online in this article. Who will help you draw your plan to get money in your sleep!
What is the concept of passive income in practice?
Passive income is the earnings you receive from things like dividends, royalties, real estate, partnerships, and other investments. Unlike salary, your passive income is not directly related to the size of your business.
That is, it is a way to earn steady money with little or no daily effort. But earning passive income is not a quick act of making money.
Although many passive income streams have an important “set and forget source” component, others require more active nurturing to achieve continuity of earning.
In the beginning, you may have to work hard to create a passive income source. But if done correctly, the amount of active work you will need to do decreases over time.
You'll need to work at least on the basics of the source. As some passive income ideas, such as creating a blog or app, take time and sometimes money to start monetizing.
But if you play your cards right, they can eventually make money in your sleep!
Now, we're not talking about taking another job. We are talking about the true concept of passive income.
i.e. in short; Passive income means the following:
a) It is not hard work for money. In general, passive income is not income that comes from something you have been financially involved in such as the wages you earn on the job.
b) Not a second job. Getting a second job will not qualify as a passive income source because you will still need to be around and do the work to get the money.
Passive income is about creating a steady stream of income without having to do a lot of work to get it.
In short, passive income is important because it creates stability, security, and freedom in your financial life and even after you die. Additionally, since it is not limited to your time and effort, it can have a positive and significant impact on your ability to build wealth.
As if your passive income source is your pampered plant, all you need is fertile soil, a few drops of water, and a little maintenance now and then. Then she begins to reap very precious fruits, much more valuable than what you gave her in the beginning.
In other words, passive income is one of the best ways to undoubtedly improve your long-term financial situation.
Also Read : 19 of the best ways to make money online ( make a fortune in 2022 )
What is the importance of passive income in your life?
Your income is the greatest tool for building your wealth, and one that usually requires you to regularly work long hours. Once the business stops, the income stops!
Even if you love your job, we're willing to bet you wouldn't mind earning some extra income without the extra effort, sweat, and time commitment for another job.
Here's what building passive income can do for you:
Passive income protects you from losing all of your income if you lose your job.
It allows you to pay off debts faster, save for retirement and creates more opportunities to build long-term wealth.
It helps you increase your wealth.
It allows you to retire early.
It protects you from complete loss of income if you lose your job.
The most important question, how much money can I earn?
Passive income won't make you rich overnight, so forget about the get-rich-quick schemes you've heard about. But consistent and profitable passive income options can build some serious money in the long run.
We're talking amounts that could run from a few thousand dollars to hundreds of thousands of dollars depending on the option you choose and the robustness of the plan you have.
Why should you start building passive income sources right away?
1. Freedom from monthly salary restrictions
“End of the month” are the two words all employees love to hear. Whether you work part-time or full-time, the majority of your income will likely come from the hours worked over the past few weeks.
But what if that active income becomes less important? What if other passive income streams slowly became your share of your income, freeing you up to spend time doing the things you love?
There is no such thing as the stress that comes from living paycheck to paycheck. And if this is your situation, adding a little passive income to your life is one of the best steps you can take.
I can tell you from personal experience that escaping the paycheck to paycheck lifestyle is one of the biggest benefits of passive income.
And the more you can separate yourself from your dependence on your next paycheck, the lighter your life will feel.
Also Read : making money Guide from CPA(from Zero to First $1000)
2. Improving financial stability
On your way to making your fortune, one of the most important milestones you can achieve is; financial stability. In other words, if you can take a look at your financial situation and know with confidence that you have the ability to weather a strong financial storm, then you are on a really solid path.
Even better, if you can count on the money coming in without having to work for every penny of it, you have achieved financial stability. The more this money is, the more confident and stable you will feel in your money.
When you don't have to go after every penny you earn, this allows you to relax, look at the big picture and make wiser financial decisions, which in turn improve your financial stability.
It's a great little course, and one of the main reasons passive income plays such an important role in personal finance.
3. More freedom to pursue your passion and achieve your goals
Have you ever thought to yourself, “If I make more money, I can achieve my financial goals a lot faster…” Well, that's just another reason why passive income is so great.
No matter what financial goals you are trying to achieve, if you develop some passive income streams that allow you to make money at all times of the day even while you are sleeping, you will achieve your goals faster.
Similar to the pay-to-payer lifestyle escape, when you have passive income flowing into your bank account, you suddenly find yourself free to pursue your passion, or for that matter, your dream career.
Keep in mind that when you rely on your active income (your salary, for example) to make ends meet, it's easy to end up stuck in a job that you can't afford.
On the other hand, if you have a steady stream of passive income flowing into your money, you will have the freedom to pursue the things you have always wanted to pursue. But you didn't find much time for her then. Simply put, passive income gives you more choices and room to breathe.
4. Freedom from spatial presence
Likewise in many cases, passive income allows you to live and work from wherever you want.
Since you don't have to work constantly in order to earn passive income, you also don't have to commit to working from a particular location. That is, as long as you earn enough passive income to fund your lifestyle, you can travel the world if you want while still getting your income. And many people do that!
And with these choices comes the financial freedom that we all seek without exception.
How do you start building passive income?
While it is great to have a lot of ideas and dreams about passive income, it is important to remember that not every idea is great.
Even if you've seen others make money in a certain way, it doesn't guarantee that it will work for you, your skills, or your lifestyle.
So to find the best ways to make passive income, you need to start with some clear goals and plans. You will need to know how much you can commit in terms of money and time. And you'll need to be willing to make short-term sacrifices to achieve your long-term goals.
Also Read : How to Create a Minimum Viable Product (Practical Guide)
How to start building passive income sources
Before we get into the best passive income ideas to inspire you, consider the following steps to get started with passive income.
First, assess your skills
Some passive income ideas such as writing an e-book or offering a course will require you to have specific qualifications and skills. If you have this, great!
If not, be realistic about whether you feel the relevant qualifications are worth it.
But evaluating your skills shouldn't just be about the things you're not good at. You should also have a good idea of the things you are good at.
For example, if you are a stock trader, perhaps you could write about finances and write a great book. And if you are a personal trainer, perhaps you can create a series of fitness videos that people can buy and follow at home, and therefore a continuous income.
Be realistic about your skills and think about how you can use them to benefit others without having to be physically there or work every day.
Second, be realistic about time, money, effort, and other commitments
As mentioned, even though the idea behind passive income is to make money while you sleep, no business can be built without effort.
In fact, you may find that building a passive income stream practically requires a lot of time and effort to get it up and running.
So before you start any project, be realistic about your other commitments. For example, if you have a demanding job, children, and an active social life, you may not have the time to build another profitable business.
In this case, you may want to consider investing for passive income rather than, say, making a book or asking someone else to help you with the hard work.
Third, look to your passion
Steve Jobs once said, “Your work is going to fill a large part of your life, and the only way to truly feel satisfied is to do what you think is great work.
And the only way to do great work is to love what you do.” It is essential to keep his message in mind when choosing any side source or passive income idea.
If at least one part of the idea doesn't spark joy or fuel your passion, chances are it won't work.
So, find an idea that you can see yourself doing and develop for years without getting bored. Even if you can step back and let the business mostly run itself, you may still need to get involved once in a while, so be sure to pick something you'll always enjoy.
Also Read : How to create your own cryptocurrency (it's not too difficult)
Fourth, define your goal
Once you have analyzed your strengths and weaknesses, considered any limitations or obligations, and thought about what makes you happy, you should have already formed some ideas for passive income strategies that work for you in your mind.
You are now sure to achieve financial independence in no time, by investing in an idea you love!
Now let's get to know some of the most important and easiest passive income sources online!
How to get passive income online?
1. Sell your skill
Do you have any special skills such as computer skills, business administration, math, counseling, fitness, or any subject?
Yes, this can help you generate very good passive income. Just make video tutorials on your topic and get it into Udemy, Skillshare, etc. So when students buy your course, you will get financial profit.
So make sure you do high quality educational courses that can really help people. In order to increase its sales over time!
Strengths: Very good income opportunities.
Concerns: The competition is very fierce.
2. Create a blog
One of the best ways to make passive income is to start a blog that makes money. Blogging is the perfect passive income source for writers or lovers of reading and constant research.
Once you start writing about a profitable topic on your blog, you can consistently drive traffic with the right SEO and discovery media.
Then when your site receives traffic, you earn passive income through display ads, affiliate marketing, or digital product sales. The more traffic you get, the more money you make.
The more a visitor's interest is in the topics you publish, the higher your income. Once your blog gets continuous traffic on your blog, you can earn money from Google Adsense. This is a powerful and secure earning method with Google.
Firms may even communicate with partnering on projects. Thus you can monetize other advertising platforms using your blog site.
To start your blog:
Select the right hosting for your blog.
Choose a blogging platform (example: WordPress or Blogger).
Choose a domain name (example: www.seo7u.com).
Design your blog or buy a ready-made template, and write the content. Promote through social media.
Strengths: Optimized articles can get additional traffic even after years, and thus more income.
Concerns: It takes time and effort to write blog articles and increase blog traffic.
But all the answers that come to your mind you will find with us in the seo7u ! Just get started with us from the following article to learn how to blog for passive income.
How to make money from blogging online in 11 practical steps
3. Create a YouTube channel
You can also become a good YouTube user and start making money as passive income.
You probably like watching YouTube videos, right? Like most people when you face any problem, you probably look for solutions on YouTube, right?
It is possible to open a free YouTube channel. Create and upload great videos for people to watch. Where you can create a passive income source in exchange for sharing your knowledge or skill.
Confused, what kind of video can you create on YouTube?
Don't worry, ask yourself what kind of knowledge do you have? For example, cooking, languages, tourism and travel, computer skills, business and marketing knowledge, etc. Make videos about your favorite topic and share them on YouTube to help people.
Once you have a set number of subscribers to your channel, you can subscribe to Google Adsense and start making money. This means that Google will display ads on your videos.
And when someone views the full ad or clicks on those ads, you earn some money every time. And if you work on your channel continuously for 6 months or 1 year, you can earn a lot of subscribers and millions of views.
Strengths: You can make a lot of money, a lot of fame.
Concerns: Intense competition, and profits vary by country of visitors.
Feel free to get started right away with the following article:
How to make money from youtube (Your Comprehensive Practical Guide)
4. Application or software development
You can make passive income by using an app or software. Where developers earn money from apps that include sponsorships, ads, or subscriptions. So, the more users of the app you can get, the more money you will earn.
Certainly software requires updates every now and then. However, it is a very good passive income source.
But this is not just for programmers! You can even hire a developer to create an app for you and add it to places like Google, Apple, or the Microsoft App Store. Once you have an effective idea, get started right away.
Strengths: You can make a lot of money without the slightest effort.
Concerns: You will need to pay money now and then.
Read also: Ways to make money from mobile applications (6 professional ways)
5. Sell digital products
A digital product can be created in a day or on a weekend. Hence, it is one of the best ways to earn passive income online.
Also, it is a way to make money online without a website or prior investment. Because you sell digital products, you earn a better margin for each sale. Among the most prominent digital products are:
a) Selling e-books
If you enjoy writing and want to write short content that provides value to others, you can create an eBook and sell it on Amazon or other platforms.
Similar to a digital course, writing an e-book is another way to sell a specific skill set or experience. The main difference is the way this information is collected.
An e-book uses a computer, mobile device, or e-book reader (such as a Kindle), to display long text in book form that contains text, images, or both. These don't have to be the length of full novels (although they can).
Keep in mind that your price will determine the expectations of your customers. The average eBook can range from 2,500 to 10,000 words, depending on your major.
With Amazon KDP, you can also sell physical books the same way you sell eBooks. It is a print on demand platform.
You can create your books using a text editor on your computer and upload this book to Amazon. So when someone buys your book, Amazon will print that book and ship it to the customer.
You can also design your e-book on sites like Canva or even Microsoft Word.
b) Selling designs, photos and videos
Another passive income idea is selling photos, graphics, and videos.
You earn passive income when buyers find your photos, graphics, and videos themselves. Therefore, I recommend photo platforms where people naturally need photos and videos.
For example, you can sell your designs on Canva. Thus, you earn money when someone buys your design individually or shares it when you use it with their professional plan.
c) Selling T-shirt designs
You can create your own designs and sell them in the markets to earn passive income.
The markets I recommend are Teespring, Spreadshirt, ViralStyle, and Amazon. You can create an account for free on these platforms.
You create designs in Canva or Photoshop, for example. The company thus prints the garments on demand and ships them. The design is paid for on sale.
It can also be a great source of active income when creating creatives and promoting them extensively on social media and advertising platforms.
T-shirt printing on demand companies get a lot of free traffic every month. It is a great opportunity to make passive income online.
Strengths: No upfront cost, no stock for a physical product.
Concerns: You need to have a certain talent.
Also Read : What is digital marketing, what are its steps, and how do you learn it 2022
6. Affiliate Marketing
Can Affiliate Marketing Get Passive Income Opportunities? In my opinion, the best thing about passive income streams is affiliate marketing.
Affiliate marketing means selling products on behalf of someone else. Where you can start with little or no investment and get maximum profits.
In fact, you can make money with affiliate marketing with or without a blog.
Thus, with pay-per-sale programs, you can earn fixed commissions or additional commission per sale. Therefore, when you promote affiliate products with recurring commissions, you earn passive income over and over again for a single sale.
Here's how affiliate marketing works in quick steps:
Register with a marketing platform to become an affiliate program and you will be given an affiliate link.
Then you market that product to potential buyers.
When someone clicks on that link and buys the product, you earn a commission.
In fact, Amazon, the world's largest online retailer, runs an impressive affiliate program. You can sign up for free in this program to become an Amazon affiliate marketer.
You can also link to products on Amazon through your blog or social media pages. And when people click on those links and make a purchase, you get some money.
There are many other online retailers that also offer affiliate programs and you can join as many as you want to earn passive income.
Strengths: High income opportunities, easy to get started (even without cash).
Concerns: Fierce competition, and entry requirements may change.
You can learn more about earning from affiliate marketing from the following article.
Also Read : What is affiliate marketing and what do you need to earn thousands of dollars
7. Cloud mining
For those interested in the world of digital currencies. Here is cloud mining which is a type of remote mining. Users can get cloud mining contracts through the website, rent computer capacity for mining, and get a stable income.
Compared to traditional mining, cloud mining does not require you to have professional equipment, rich knowledge stock, and uninterrupted operation and maintenance 24 hours a day. Rather, all the cloud mining sites will help you solve it completely. All you have to do is buy a cloud mining contract.
After purchasing the contract, you do not need to do anything. The daily profit will be returned to your account, you can withdraw funds at any time, and the withdrawal time only takes 30 minutes to complete.
And if you do not need the money for a while and want to earn more passive income, you can also buy cloud mining contracts with the profits you get.
Additionally, some cloud mining sites encourage the use of your referral link to invite others to join. Thus when others register and invest through your link, you can get 3% of their investment amount as a gift.
Referral programs are also a great way to generate passive income if you have a large following on social media such as Twitter, Instagram, TikTok, Facebook or YouTube.
Strengths: There are chances of making a lot of money.
Concerns: There is potential for losses.
8. Investing via NFTs
NFTs are a largely unregulated growing phenomenon to date. While they can command huge revenue, they are also vulnerable to sudden market crashes. Oftentimes, their prices go up and down, with the underlying blockchain being Ethereum or Solana, the two most popular.
While investing in NFTs, you have a great opportunity to earn a great income when you stay up to date with news and updates and understand the perfect time to step back.
Being the trend of the digital world these days, here's how to earn passive income with NFTs. By explaining some common methods:
a) Stacking NFTs
Crypto staking is the process of verifying a transaction. In other words, put the NFTs that you own in mortgage for money. Which is very similar to a savings account!
You simply deposit your currency into an account that is used for storage (or hoarding). Thus investing in an NFT staking project will earn you interest from 5% to 20%, depending on the NFTs and the platform.
b) NFT royalties
When you sell the NFT on the secondary market, the originator of the NFT acquires the equity, as defined in the smart contract. NFT equity forms an integral part of the smart contract.
The royalty rate is thus determined either by the market or by the originator itself. The royalty rate is usually 5-10% but often increases to 20%.
c) Leasing NFTs
NFT rental platforms are a new and evolving concept. However, it allows users to rent out their NFTs, as in the case of ReNFT, and helps in earning passive income.
There is a share of guarantees, price and duration in the process. Some platforms specify the price you can set for rent, while others allow you to choose the price according to your calculations.
Of course, more common NFTs will bring higher costs due to increased demand.
Also Read: Methods to make money from NFT (6 Different Methods Explained 2022)
And finally, remember! You can use one, two, or all of these passive income ideas at once.
And before you back off! Remember what Warren Buffett, the world's most famous businessman, investor, and richest man said: "If you don't find a way to make money while you sleep, you will work until you die."
But fortunately, you don't have to be Warren Buffett to earn passive income. The methods we mentioned you can get started with right away. From writing a blog to investing in the stock market. The ideas we've presented can help you generate a permanent source of passive revenue, without the need for much experience.
So start making your passive income from scratch, even if you just put a small amount of money in the bank to constantly increase it with interest. This will be just your launch into the world of passive income, and then start your own project that will give you money while you sleep…