Isn’t it great to learn how to start generating passive income as one of your sources of income? A passive income is any form of continuous income that you do not have to work for continuously. You may have to put a lot of work in at the beginning, but after this you should be able to sit back and let the money roll in. It’s the kind of income that you can earn – even when you sleep!
By setting up a passive income, you can earn extra money without having to put in extra hours. It can also serve as a safety net for times when your main income may be cut off (such as during periods of sickness or transition periods between jobs).
There are various different ways to generate a passive income. This post lists a few of the most popular options.
Use a high interest saver
Putting your money into a high interest saver could be one way to make a passive income. Your money will slowly grow over time via interest payments. The more money you put into one of these accounts, the greater the interest. Bank interest rates range from 0.01% to 2.00% – it is best to shop around.
Invest in stocks, bonds and crypto
You can make an even larger return by investing in stocks, bonds or crypto. Some people are able to make a 10% return per year by doing this – this could be extra money to supplement your income. Alternatively, you could use a wealth management company and save this money towards the future.
Rent out property
You can also make a passive income by renting out property. This could include renting out a house to tenants or renting out a room to a lodger. You could even rent out your driveway to a neighbor. These rent payments could provide a relatively passive income (there will be certain landlord duties you will have to get involved in, but for the most part you shouldn’t have to put in too much continuous work).
Create an online course
Another passive income idea could be to create an online course. Typically, these courses consist of written content and video content. Every time someone pays for your course, you will get money in your bank. You will have to dedicate time to creating and marketing your course, but otherwise it is a fairly passive form of income.
Write an eBook
You could also consider writing an ebook. Every time someone pays to download it, you will get some income in your pocket. Just like an online course, you will have to put time and energy into writing it and marketing it, but most of the work is then done.
Sell stock photography
If you like photography, you could consider creating some stock photography to sell online. Every time someone buys your stock photos, you will make a bit of income. While there are many free stock photo sites, many businesses are still willing to pay for stock photos so that their website content is more unique.
Generate ad revenue
By owning a website, a blog or a YouTube channel, it is possible to make money via ad revenue. This involves displaying ads next to your content – every time someone clicks on these ads, you will make a small amount of revenue. The more visitors/views you attract, the more ad clicks you are likely to get. All it takes is one viral piece of content to create an effective passive income stream.