What are Some Ways to Make Passive Income

Passive incomes are often misunderstood, for this source of income-you require upfront investing and nurturing time. But after some time these streams start to build up and can maintain themselves and you will be getting a constant source of income. 

Talking from my own experience, adding passive income streams will help you increase your earnings and accelerate your financial goal in a lot of ways. For example, starting a YouTube channel can be a great place to start your entrepreneurial journey.

How and What does it take to Earn Passive Income?

Before diving into different streams of passive income I want you to clear some misunderstandings. The name 'Passive' tells that you don't need to do anything to make it. But, this is not true. You have to start by investing your time, energy or money. 

You cannot start your residual income by not investing your time or money. However, passive income also takes risks so it will be a good idea to change your mindset and become a risk-taker from today.

In this article, I will be diving deep into the top 10 strategies to make a lot of passive income.

You will find this useful: My Favorite Passive Income Ideas You Can Use To Build Real Wealth

Passive Income that Requires Monetary Investment

These types of streams require upfront cost to start but don't leave as you can start from as little as $10. Thus, it is achievable for everyone.

1. Dividend Stocks

Dividend stocks are tried and tested methods for passive income. You will have to do plenty of research to find good stocks and invest a significant amount of money for large dividends. 

Moreover, if you consistently invest money back into stocks you can have a compounding effect and can make a large amount of residual income. Compounding investment means that you invest all of the dividends back into stocks and enlarge your portfolio.

Prince Walid bin Talal from Saudi Arabia and Warren Buffet(father of Business) made their first billions from stocks.

Before starting investing in stock, I will advise you to open an account at the best brokerage account so that you get rewards while doing it.

My favourite place to invest is eToro You may have heard about them from YouTube ads I guess. You can invest there without paying commissions, also they are FREE. 

2. Rental Properties

This is my favourite stream of income. I guess if you get deeper into this field you will end up owning a big apartment building. I would suggest that you should listen to Grant Cardone, who started with $3500 and now he owns $2 Billion of real estate and every month he is getting positive cash flow month. Another example is ex-president Donald Trump owns 27000 rental properties all across the US. 

It is hard to manage big properties but if you hire good management companies then you can make this completely passive and you never have to attend any calls from your tenants.  

However, the internet has made our lives easier than ever to invest in rental properties. Depending on your aims and interests, there are a variety of ways to invest in rental homes. You can invest as a limited partner in large residential or commercial properties, or you can buy homes and become a landlord - all from the comfort of your own home!

Want a deeper understanding of real estate- Fundamentals of How to Create Wealth Investing in Real Estate

3. Annuities

Annuities are a type of insurance that you pay for but that can provide you with monthly payments for the rest of your life. If you're interested in purchasing an annuity, the terms vary and aren't always a good deal, so talk to a knowledgeable financial expert first. Below is a list of which types of annuities you can invest in as a beginner. 

4. Invest in REIT (Real Estate Investment Trust)

If you don't want to manage the properties, are not an accredited investor or invest directly in real estate then REIT will be the best option for you. You can invest in big buildings and apartments from the comfort of your home by buying shares of REITs.

These investment vehicles hold properties under them and owners get to benefit from gains, sales & refinances. 

Picture source- https://static.seekingalpha.com/uploads/2020/2/25/saupload_UnderstandingREITsBrochure-3.jpg

5. Invest in a Business
Another great idea to get a passive income is by investing in a business. It can be risky, but with high risk, you can make high returns but you need more concentration towards company performance. 
It will be a great idea to invest in businesses that have big potential and plans for growth. 

In this field, you have to predict the future.

Before a decade, when Uber and Lyft were looking for private investors. Today they are worth billions but you as a single investor can only invest in public companies so it can be risky if they get public.

Don't worry, there are many ways you can reduce risk. For example, you can lend money to a business and get paid a solid return for doing it.

6. Refinance Your Mortgage

Refinancing your mortgage can be a fantastic way to free up a lot of income and save you $100,000s over the life of your loan. This may seem unusual, but it can be a wonderful way to free up a lot of cash and save you $100,000s over the life of your loan. In my opinion, that's a really good gain.

Interest rates are still near historic lows right now, so if you haven't looked at your mortgage in a while, now is a wonderful time to do so. If you can save 0.50% or more on your loan, you'll be putting thousands of dollars back in your pocket. Here there is absolutely no competition. 

7. Peer to Peer Lending
In P2P lending you simply borrow money from the stranger and invest in businesses. An online platform matches you with the people willing to lend. This is known as marketplace lending or crowdfunding.

Initially, these platforms only offered personal loans, but they have since grown to include business lending (sometimes called peer-to-business or P2B). Some large platforms have even formed relationships with financial institutions.

In the next part of this blog, I will briefly explain how to make passive income with no money down.
If you don't have money to invest then you will find these ideas useful. But in all of them, you need to build a website or a blog for this you will need a domain and hosting. I would recommend you to use Bluehost, here you will get a domain and hosting for just $2.95.

1. Selling E-Products
Self-publishing is so common nowadays. If you ever bought a book from Amazon there is a pretty good chance that you are buying a self-published book.

Self-publishing is so easy you just need to create a book in a kindle format with a cover on the first page. Then upload it to any famous marketplace such as Etsy or Amazon. To make this process completely passive you need a lot of upfront marketing.

2. Create a Course on Udemy
Udemy is an online platform on which you can take courses. Some of them are cheap and some of them are paid (Under $15). Instead of being a consumer, become a producer and create your own video course. Trust me you can make more than $70000 from just a single video course on Udemy. On this platform, you have to SEO your course to get a wide range of customers. 

If you have an extensive understanding of a certain field, this is an excellent alternative. This is also a fantastic method to turn traditional tutoring into a source of passive income!

3. Selling Stock Photos
If you love photography then this can make you a lot of income. You could be wondering where your favourite blogger, websites and magazines get their photos from. These are normally bought from these kinds of places. 
If you enjoy photography, you may sell your images on stock photo websites and earn a fee each time someone buys one.

4. Affiliate Marketing
The process of collaborating with a firm (becoming their affiliate) to gain a commission on a product is known as affiliate marketing. This strategy of earning money is most effective for individuals who have blogs and websites. Even then, it takes a long time to build up to the point where it is no longer active.

Want to become a full-time affiliate marketer then I recommend you to get this course: CB Affiliate Magic-Affiliate Marketing Software

5. Design T-Shirts
A site like Vistaprints allows users to customize tees. If your design becomes famous and whenever it sells you will get royalties.

6. Sell E-Products on Etsy
If you like selling e-products and want passive income without having to do enough work then this business model can help you a lot.
I wanted to buy paint for my living room from Etsy but ended up buying digital files of the artwork.

7. Network Marketing 
Multi-level marketing, also known as network marketing, appears to be on the rise.

Multi-level marketing organizations include Young Living Oils, Avon, Pampered Chef, and AdvoCare, to name a few. By establishing a team beneath you, you can generate passive income through network marketing (often referred to as a down line.) 
You can earn commissions from your team's sales without having to do any work once you have a large group.


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