Today, I am going to talk about a list of the top 10 Passive Income Ideas and Strategies.
I have seen that the average millionaire usually has many different income streams that they make money from.
Usually, the typical millionaire has more than 6 passive streams of income that they earn from.
This does not mean that they have six different jobs.
It means that they have 6 passive income streams that they use to increase their wealth to become and stay successful.
In this post, I will give you my top 10 list on what exactly passive income is and will also share a few of my passive income strategies and opportunities with you.
You will need an initial investment to get started but you will be able to create your own passive income streams that will pay you without any additional investment.
I have to inform you that there is a misconception among many people that want to earn passive income and thinking that they can earn without doing anything.
There are up-front investments involved and some work you will have to do to maintain the passive income that you can earn.
But is it worth it?
Absolutely, when you can make an investment into a solid business that will pay you for a long time and with little but necessary work to maintain it, you can become very wealthy, and is well worth it.
With that said, let’s dig in and see what we can learn about passive income.
What Is Passive Income?
To understand it in a simple term, passive income is a way to earn money without doing much to maintain a steady income stream.
It may need plenty of work upfront (including an investment) but later on, these income streams will build and maintain it on regular flow.
In comparison, active-passive income is something where you have to actively do something in order to earn money.
One very good example is doing the typical 9 to 5 job, if you do not work you don’t get paid.
My top 10 list about my passive income ideas will make you understand why I am a fan of Passive Income.
I would prefer not to trade my precious time for money when I don’t need to.
It also depends on your job and occupation; it will be really difficult for you to become rich when you are dependent only on your active income, with just one or two passive incomes.
It is your time and money that you need to consider when choosing one of the different types of passive income ideas that we have gathered here in my top 10 income strategies list that you can use and profit from.
Is Earning Passive Income A Simple Strategy?
Before getting in passive income examples, I think it is very important that you clear up certain misconceptions. Even though it appears like you do not have to do anything or work hard to bring in huge wealth income, this is not true at all. All types of passive income streams need the following 2 elements:
- Upfront monetary investment
- Upfront time investment
It is just impossible to earn any kind of residual income if you cannot provide one of these elements. Let me share with you the list of 10 passive income examples that you may try out irrespective of the category you like.
Investing is a simple passive income type, and does not need much effort. Suppose you can save money, or already have a huge amount of money, then there are many passive-income opportunities that you can try out from your home.
Top 10 Passive Income Ideas and Strategies
Let us go ahead and list down the top 10 different types of passive income ideas that need an initial investment or no investment at all.
1. Invest In the Dividend-Paying Stocks
What exactly are the dividends? Dividends are the cash paid by the company to its shareholders.
If you plan to invest in the dividend-paying stock, then you need to buy a share of a company and you will become a part-owner of the company.
So, when that company grows and makes extra money that it does not necessarily wish to re-invest, then it will return some extra money to its shareholders in the form of dividends.
Because you have a fraction of the company, you may get a part of the cash!
The dividend-paying shares are the best tools to generate good income, however, ensure you do proper research on the shares that you purchase as dividends aren’t guaranteed: if a company is not generating enough cash, it will cut/suspend its dividend.
2. Start Your Own Blog for Passive Income
Blogging is my personal favorite form of passive income and it is the best foundational online business idea in my opinion.
I earn money from people who visit my site from the ads, so if you are reading this article, I am thankful to you :-).
Affiliate Marketing is by promoting the product and service on the internet and if somebody makes any purchase through the referral link you give, then you will get the commission.
I do it often on my personal blog and it is generally products that I use so it is really good to recommend something, which works out and also gets paid.
Blogging is really good because earning potential is quite limitless and one can start with multiple income streams like affiliate marketing, ads, courses, ebooks, and more.
Another related article: How To Make Money Blogging For Beginners – Detailed Guide Included!
3. Create/Sell Online Course for Passive Income
Maybe you are knowledgeable about a certain topic. You may easily create the course online teaching Algebra to Piano, and launch this on the platform such as Udemy and Teachable.
The beauty of this most popular strategy is when you do the initial work of making the course; you will get paid for every new student that gets enrolled.
So, which is the platform to choose for you?
Teachable & Udemy are the two most popular and highly prevalent ones, and they are both user-friendly and intuitive. With Teachable, you get complete control over the pricing and feel of the course; however, you do not get a built-in audience. But you need to do all marketing yourself.
4. Start Your Investment with Robo Advisors
Some years before, if you wished to invest your money into the market, you need to hire a financial advisor or portfolio manager.
This does not just require the minimum amount to invest, which is probably much higher than the majority of people have but it does come with high fees.
What are Robo Advisors?
These are the digital platforms that can change by automating investing and using algorithm-driven technology.
The best part about investing in this form of income is that they make the best quality of investing accessible to everybody, even though you have very little money, to begin with.
Betterment is the biggest Robo advisor in the market, and there is no doubt, the best, particularly if you aren’t very keen to spend a lot of time in learning about investing.
There’s no minimum amount for investment, fees are very low, and you do not need to know about investing in this case.
What you will need to do is:
- Create an account (takes 5 minutes), without any minimum deposit.
- Tell Betterment about yourself: You can tell them about your financial life or why you are investing for? A dream vacation or down payment for mortgage or for some other reason?
As per your answers & risk tolerance, Betterment may recommend the right investment plan and build you a personalized portfolio.
Another great article: Affiliate Programs That Pay Daily – The 4 Types Explained and How They Work
5. Peer-to-Peer Lending
Peer-to-peer lending is another passive income strategy that you can take advantage of.
First, it is very important that you know what peer-to-peer lending is all about.
Peer-to-Peer Lending means to loan money to people.
This type of loan is intended for people who do not qualify for traditional financing.
There are many companies that provide returns in the range of 4 to 10% that are higher than the typical savings account.
Also, you can choose the best investment for you, as per your risk-taking strategy.
Ensure you do proper research since there will always be the risk to lose money.
6. Crowdfunded Real Estate
Real estate investing is really very good, but it needs plenty of upfront capital and you don’t need to deal with any tenants!
Crowdfunded investing will give you the right way of investing in the real estate market and without any need to put in plenty of money upfront.
You can actually make passive income compared to have your own flat or house!
When you are investing in the crowdfunded real estate, normally you are funding loans that are used to purchase and improve the real properties and get paid for them.
With Crowdfunded real estate investments, you will get returns in a range of 7 to 10%, just like P2P lending, but you also have an actual house that will back up your investment.
Please remember that this is a new market, and there are a few risks of investing this way.
Ensure that you do your own research prior to you dive in!
7. Write eBooks for Passive Income
Another great passive income idea is to create and sell eBooks online.
Suppose you like the idea of writing, and you think can do a good job, but would not like to deal with any technical headache that will come with blogging, just think of self-publishing your e-book. The e-books are shorter than normal books that put the very little burden on you for producing the masterpiece.
Most successful and profitable e-books are generally non-fiction. Just have a look at how-to guides or other explanatory items on a certain topic, such as fitness and graphic design, and get the proper idea.
One such platform is Amazon Kindle Publishing, and it is the simplest platform you can get started. Publishing takes some minutes and most of your books come on the Kindle stores all over the world within 1 to 2 days.
In Amazon KDP, you may earn over 70% royalties on every sale to the customers in many countries, and one can set their own rates and make required changes to the books at any time.
8. Build a CD Ladder for Passive Income
Another passive income opportunity would be to build a CD Ladder.
A CD ladder is one best way of maximizing interest rates that you earn on your savings without even tying up your money for a long time frame.
It can be accomplished by staggering many different CDs and so they mature at different times.
The main purpose of the CD ladder is keeping your money liquid (available for withdrawal) like with the savings account when earning higher rates of interest that generally come with the CDs.
In order to create the CD ladder, the first step will be selecting the bank with high rates of interest on CDs.
You can choose to purchase one of them.
And after every 6 months, the first CD matures & you choose to renew it again. You buy an 18month CD with money.
When the 12month CD matures after six months, you purchase another 18month CD. It creates the CD ladder and where you will get access to funds every six months.
It means that every six months, you can decide whether to open the new CD or to withdraw money and the interest that you have earned from it.
9. Start Your Own YouTube Channel for Passive Income
Another passive income strategy would be to start your own YouTube channel and create videos.
Starting your YouTube channel can actually earn you passive income on the internet if you are not aware of this strategy.
So, rules on earning money with the YouTube channel changed, but it is still one of the best options for many people out there. You will have to adjust your own strategy a bit.
Personal YouTube channels were one of the best platforms to monetize money for everyone. What it means is you allow the advertisers to place their videos (ads) at the start of the content. Whenever you get a number of views, then you will earn cash.
There are many people who make an entire living while doing this.
There are people who earn by filming makeup tutorials, unboxing videos, travel guides, and anything you may think about, really.
YouTube is one popular platform, there’re many eyeballs that will attract a huge audience to the obscure niche.
10. Sell Photos Online for Passive Income
Another passive income idea would be to sell photos online.
This is another strategy that people use and is a great opportunity that many people rarely use.
If you don’t know this, you can actually sell your stock photos online
Have you ever thought about how to get paid by taking pictures?
As it turns out, it is actually very simple.
The best website to earn money with photos is Shutterstock.
From its inception, Shutterstock has actually paid more than $500 million to its contributors. Because of the popularity & low barriers to entry, the site will work as the best passive income source irrespective of your level of experience.
You need to set up your account, upload images, and make money whenever any customer downloads the photos.
The amount you will earn every download generally depends on the type of customer who buys the image.
Suppose the customer with monthly subscription downloads the image, you will earn less than the customer who pays for your picture.
The more you earn with time, the more you will earn for every image.
More related articles: Make Money Online From Home Ideas
Another great article: Is WIX Good For Blogging? 2 Things You Should Be Aware Of
My Final Thoughts about these Passive Income Ideas and Strategies
There you have it, I have provided a list of 10 top passive income ideas and strategies that are most common.
I hope that there will be something on the list that everyone will be able to use.
I hope you enjoyed my Top 10 Passive Income Ideas, strategies, and opportunities that I have listed here for you today.
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Thank you for your support!