Passive Income is the dream, right? A steady income so you can make money while you sleep, allowing you to reach financial freedom and work at what you love. Well, it’s not as difficult as you might think! Check out these 5 passive income ideas to get started!
Passive income is defined as ‘earning a regular income from a source other than an employer.’ It’s different from the usual 9-5 in that you can make money even when you’re not officially ‘on the clock’ in work.
One big advantage of this is that your earning is unlimited! In a traditional job, you have to be physically present to be paid a wage. This massively limits the amount of money you can make, and it also affects your whole lifestyle. If you’re not actively working, you are not getting paid.
PASSIVE INCOME DEFINITION
Passive income, on the other hand, is about having an income stream from another source. Your passive income stream will generate money steadily (even when you sleep or are on vacation!), and does not require your actual presence or steady work to come through!
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5 PASSIVE INCOME IDEAS
All of these passive income ideas require some up-front work. It’s a lot like an investment- you will need to work hard to set up your passive income streams, and in some cases, to promote and market what you have created.
But, once the ball is rolling, these passive income streams can make you money while you sleep– and continue generating you an income in years to come!
1. RENT OUT A SPACE
Renting out a space is one the easiest, low-risk ideas for creating passive income. The initial investment here isn’t the work you have to put in, it’s the asset you own that you can choose to rent out.
Getting a full-time flatmate is one great option for renting out a room. It will provide a steady stream of passive income. If this is up your street, a site like Room Mates is an easy way to find a flatmate.
However, renting out a room doesn’t have to mean a full time flatmate in your space! There are lots of options for renting out the room on your own terms without having someone permanent.
2. AFFILIATE MARKETING
Affiliate Marketing was a completely new term for me when I started this blog, but I quickly realized that it’s one of the best ideas for passive income.
The idea of affiliate marketing is basically earning commission for promoting products. This can be anything from physical products to services or even courses. Amazon Affiliates are one of the biggest affiliate partners out there, and have products that would suit almost every niche!
While it’s possible to be an affiliate marketer without a website, running a blog will get you much more traction. Having a blog will allow you to choose a niche, and promote products that are relevant and that your readers actually care about.
It also means you can write meaningful content that ties into the product you’re promoting. You can also review products, and promote your personal favorites to your readers.
Some examples might be:
Mommy Blog- promote baby equipment, books, and parenting courses while writing about parenting tips and self-care for moms.
Fitness Blog- promote exercise equipment, fitness courses, and nutritional products while creating useful content around fitness and health.
Beauty Blog- promote make-up and beauty products while giving tips for how to use the products you recommend.
3. CREATE PRINTABLES
Selling products is an age-old way to make money. However, most products require a lot of work. Having an Etsy shop is a great way to have a side income, but it’s a far stretch from passive! It involves actively making products to order.
That’s why printables are such a great option. It might be a lot of work to make a product that you’re really happy with, but it’s an investment of your time. Once it’s made, you can sell an unlimited number that will be delivered without any active involvement from you- ideal for a passive income stream!
Or, if you’re in education and can create products that teachers would find useful, then you could even sell through Teachers Pay Teachers.
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4. WRITE eBOOKS
Selling eBooks is my favorite way to make passive income. I love writing, and have written both fiction and non-fiction books- many are between 3,000-10,000 words- it doesn’t have to be a full length!
Formatting them isn’t too difficult to manage on your own. I use this easy guide to format my ebooks and don’t find it too difficult. If you prefer, you can also find someone on Fiverr to format it for you for minimum hassle. Then you simply upload your manuscript to Kindle Direct Publishing. You can also create a paper copy of your book.
The problem with self-publishing is getting people to notice your book from the millions that are published every year. Publisher Rocket is the tool I use to find keywords, analyse competition, and even finding profitable areas to write in. For me, the initial investment is so worth it in helping me create a passive income stream.
Getting into investments is one of the most tried and true ideas for passive income…. but it can still be a gamble! Investing is not something that I’ve dipped my toe into yet, but I’m definitely interested in exploring this further as a way to make passive income.
Investment is basically putting your money to work by backing a business. The goal is a long-term return on your initial cash input.
Check out this ‘Ultimate Guide to Investing’ for:
- A breakdown of the primary types of investments.
- The risks and rewards of many common options of investing.
- How money markets work, how Bonds work, what T-Bills are and how the stock market works.
- Real estate investing and what the options are.
AND THAT’S IT!
Imagine having a steady stream of income that comes no matter where you are or what you are doing. It’s the ultimate financial freedom in life so you can create the kind of life you want to live. When you figure out how to make passive income, this can be a reality.
While it comes with initial hard work to get it set up, if you put in the time and effort, the payoffs can be incredible, and even better- lifelong!
Please comment and let me know if you’ve tried any of these ideas to generate passive income, or if there are any other major ones that have worked for you.
You might also enjoy:
- 22 Legit Work From Home Jobs for a Life You Love
- How to Start Your Own Small Business From Home
- 7 Fun Hobbies To Make Money Online Doing What You Love
- 11 Ways To Make Money Online
- 5 Awesome Ways to Make Money Online From Writing
- 11 Easy Ideas on How To Make Extra Money From Home
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Thanks for reading!