If you want to earn passive income, you may be excited by the concept of earning money that comes with minimal effort and time investment that is limited. The investment is low in terms of money too. While the process may be daunting initially it will eventually provide stability in terms of finances and freedom and it will allow you to spend more time with the stuff you want to enjoy. Here are 10 steps that will help you in making passive income.
- Investing in dividend stocks
Divided stocks refer to the shares of the companies who are willing to distribute a part of their earnings to their shareholders as dividends. By investing in companies that pay divided you can expect regular income without engaging in the investment activities which can be a risky investment.
To earn money in this way you must first purchase the shares of companies that pay dividends after creating a brokerage account. The dividends can be paid out based on the number of shares owned by you every quarter.
- Investing in real estate
One of the more traditional ways of earning passive income is investing in real estate whereby owning a rental property you get to earn a rental income every month and also benefit from the appreciation of the property value. To do so, you need to buy a property and then rent it out to different tenants. When you collect rent every month, it will help you in getting rid of your tax costs, living costs, and even mortgage if you have any.
- P2P Lending
P2P lending or the peer to peer lending is done through platforms that allow the lending of money to individuals directly or to small businesses in return for payments as interest. To do this you need to join a lending platform where the lending can be done to borrowers you will then receive the interest payments on such loans and it is a major income stream if you need a steady amount of income going for you.
The best way to do it is by diversifying the investments you make and making the spread of your capital across many different loans for the reduction of risks. There are risks here however as the borrowers might be defaulting on the loans and leads to losses. The p2p lending is not insured so there are potential losses that might follow.
- Creating a course online
If there is expertise that you have gained in any subject or skill, it could be beneficial for you to create a course online and sell it to gain some passive income. After the course gets created properly, it can be sold through various platforms for you to earn a lot of money
It is important that you identify the topics that you know about. You will need some expertise in creating the video content and then building the course for you that will ensure money for you.
- E-book writing
Another way of earning money passively is by writing an e-book Once the book gets written you can sell it online and earn for an indefinite time.
The process can be done through Kindle Direct Publishing on Amazon or other such platforms. It is important that you invest time and resources to create a book that you think will sell well. It could be a good option to decide whether you want to create a fiction or no fiction so that you can plan the book. It will be good to grow your skills in writing by reading about it.
- Blogging
Blogging is another source of making a lot of passive income. You can earn this income through advertisement, selling your products, or doing affiliate marketing. The process here is to create quality content and monetize the content through the creation of ads and links through which people can sell products.
For this, you need to create content that is SEO optimized and it could then help you earn money through Google Ad Sense and other programs such as affiliate programs which are related to the the niche that you are working for
The tough part here however is working on the blog continuously and creating content for which you might need to hire people.
- Investment in REITs
REIT is a process that allows you to invest in real estate without the need to buy managing or finance properties.
REIT companies are those that own and operate the real estates which produce income. Purchasing the shares of REIT can give you an option of earning divided by the income that is generated in different properties in your portfolio.
- Making a mobile app or software
In case you have skills to program or develop the software you could have a passion for you that creates a lot of passive income.
If you can develop an app or software that is going to solve the problems, create entertainment, or meet a specific need. Once you are earning money through these in-app advertising and purchases, you could use it to modify the software even more.
The earning comes through in-app purchases and advertisements. You will have to launch your app through the Google Play Stores and app stores.
- Selling stock pictures and videos
If you have a passion for photography and videography, you might have a chance at earning money through platforms like Getty Images, Adobe Stock, and Shutterstock This is a risk-free way of making passive income through royalties and licenses.
It is important that you grow your skills in photography and videography and use optimized keywords.
The downside however here is the stock photos and videos do not earn too much too early.
- AffiliateMarketing.
This is a process that involves you promoting the products of other people and earning the commission on sales that are made through your referrals.
For this, you have to join the affiliates who are related to your niche and help people grow and grow with them as you earn your passive income.
Leave a Comment