5 Ways to Get Passive Income
It is often noted that millionaires have between five to seven streams of income.
Many of these are from passive revenues, which are defined as assets that make money while you work on other projects. While they may take some time and effort to set up, passive income is the key to increasing your wealth. Below, we give five ways in which you can earn it.
Become a Landlord
When you own and rent out a property, you earn money in two ways. First, you gain a rental income from your tenants. This produces a monthly yield. Second, over the long term, your property will mature and allow you to earn money as it appreciates. All you need is the right type of property.
Being a landlord does take more work than people think. It involves knowing the local laws, documenting all transactions, collecting rent, and maintaining the property. All these can be found in Honeycomb Insurance’s tips for first-time landlords, which goes into much more detail on getting the process correct. You will also find helpful tips on choosing the right tenants and creating watertight rental agreements to avoid any conflict later down the line. Follow these rules and the process should be a lot easier.
Invest in Dividend Stocks
When you invest in dividend stocks, you will receive a payment at regular intervals. This is determined by how many stocks you own and the amount of profit made by the company. It is an extremely passive form of income. Investopedia has a list to help with the hardest part of the process, which is choosing the right stocks, which can go up and down in value daily.
Create a Course
Throughout your life and career, you will have accumulated skills that people want to learn. They may relate to business or your hobbies and interests. You can turn them into courses to be sold on websites like Coursera and Udemy.
This takes some initial outlay. To attract buyers, you need high production values, so it may be worth investing in the correct equipment or a company that can do it for you. From here, you will have to design and build the course materials. It is best to have a mix of videos, written content, and images to use so it caters to a range of different learners.
Create an App
Of all the ways to make passive income, this one requires the most financial outlay. However, it can also be one of the most lucrative models if you hit on a great idea. Your concept could be a game or other form of entertainment, or it could be something that helps people in their day-to-day life.
Mashable has a fantastic list of websites where you can pay to get it built. Once complete, you then need to decide how you will generate a profit. Some apps offer free models that have ads built in to create revenue. They may then add a tiered model with no ads.
As your app grows, you may need to add extra features and make improvements. This will cost more money but should yield a good return on investment. The only downside to an app is that you are entering a crowded marketplace. There is a whole range out there with big budgets behind them, so you need to find a unique proposition.
Rent Out Space
If you have space on your property, you may be able to rent it out. This could take the form of garages for storage, or even parking spaces. If you are not using it, then someone else probably will be able to and will pay. Going even further, you may even convert rooms in your home to rent to tenants.