Passive income is putting your money to work for you. It’s basically money that flows in with very little effort on your part. It can be in the form of many different things, from investing to writing a course or even becoming an expert at earning the most cashback rewards. Concentrating on some good sources of passive income can help you achieve your financial goals. Depending on your idea you may need to begin with saving money. Whether it’s saving to invest or taking advantage of your skills for hire, you may need some funding to get started.
4 passive income ideas to help you build wealth
1 Invest in Real Estate
Investing in real estate can be a great form of passive income and can create a continuous incoming cash flow. Whether you invest in a local apartment house, a nice vacation home to rent, a multi-family home, or just rent out the extra room in your house, it can put some regular cash in your pocket. As we mentioned above, you’re not supposed to work hard to earn passive income. If your rental entailed a lot of work and upkeep, you should probably have a property manager to handle the day-to-day of your investment property. As a landlord, you get the benefits of regular rental income, as well as the appreciation of your investment. If you don’t want to take it all on yourself, you may be able to be a limited partner in a larger real estate investment.
2 Invest in Dividend Stocks or Bonds
Dividend-paying stocks are usually a pretty safe bet for investing because they are typically well-established companies with a positive track record of distributing earnings back to shareholders. These companies pay regular dividends which can provide that passive income stream you’re looking for. You can invest in a stock on its own or through a mutual fund. Building a portfolio of dividend-paying stocks may take some time, but many investors find it worth it.
A bond is a fixed passive income source. There are different types of bonds you invest in. They include US Treasury Bonds, which are issued by the US government for durations from 30 days to 30 years. There are also Municipal Bonds, which are issued by the government or various municipalities to finance projects such as roads, bridges, and various infrastructures. There are other bonds as well, but these seem to be the most popular. Understanding the value of bonds is a great way to get started. It’s truly a passive income source, as once you invest, you can sit back and relax.
3 Create a Blog or YouTube Channel
If you love blogging or creating video content, this may be perfect for you. It all begins with developing an audience. What’s your niche? Your professional experience or talents will come into play. Whether it’s how-to guides, relationship advice, or recipes, the content you create needs to attract an audience. Once you have the audience, you can monetize by selling ads on your site. PPC or CPM ads on a popular site with a loyal audience can generate some nice ad dollars. You can also sell sponsorship space, include affiliate links in your content, or even sell products. They are all great ways to create some passive income to build wealth.
4 Taping into your talent can help create passive income
Have a passion for photography or music? Tap into your inner creativity to create some passive income. If you love to take photos, consider selling stock photos. Stock photo companies, such as iStockPhoto and Shutterstock are always looking for good photos. If you have some original music, you might consider licensing it. You can sign up and list your music in music libraries such as Songtradr, billed as the largest B2B music licensing marketplace in the world. It connects artists with brands, advertisers, film, TV, and more.
Create opportunity for passive income
Creating a stream of passive income can help end a paycheck-to-paycheck lifestyle. It can be a smart way to earn the extra money you need or build savings. Remember, passive income is a cash flow that requires little effort to maintain and can have a very positive impact on your financial situation.
Read more financial tips on the Guthrie Community Credit Union Blog.