There’s nothing wrong with having a 9 to 5 job, but it probably won’t buy you that brand new Porsche you’ve been dreaming of. The current pandemic and rising cost of living leave little to save or spend after buying the necessities. 51% of employees think they’re underpaid, and they may be right.
If you want more than just your monthly paycheck, you’ll have to start a business that won’t drain you physically, mentally, and financially. You’ll need a steady stream of passive income, but the problem is finding the best streams of passive income to get into. With so many passive income ideas, it’s hard to know which ones translate into actual cash.
Join us today as we look at the best passive income streams to give you the flexibility and financial freedom you crave.
What Is Passive Income?
When most people hear passive income, the first thing that comes to their minds is effortless money or real estate. While investing in real estate is an excellent way to make passive income, it’s not the only way. There are plenty of other ways to make passive income that we’ll look at later on.
To put it simply, passive income is a steady source of income that requires little or no effort to earn and maintain. The earnings from rental property are an excellent example of passive income because all you have to do is wait for rent payments from your tenants every month. As long as you maintain the property, the money keeps flowing in.
Best Passive Income Streams To Consider
There are many ways to earn a passive income, but not all of them can accelerate you to your financial goals. If you’re looking to expand your financial portfolio, here are some passive income ideas you should consider.
Try Affiliate Marketing
Affiliate marketing is one way of creating multiple passive income streams, but it won’t be easy. Affiliate marketing is an online form of advertising where companies use affiliates to market their products. The advertiser pays the affiliates for any sales garnered through them.
Before you try your hand in affiliate marketing, you’ll first need to amass lots of followers. Social media and Youtube has been the go-to platforms for most affiliate marketers, but they’re not the only one. Websites are also great for affiliate marketing, especially if they get plenty of traffic.
To be an affiliate marketer, you have to add a link to the advertiser’s product on your social media posts or website. You’ll first have to make a deal with the advertiser before you can generate any income from these links. It’s also worth noting that you won’t make a single cent if no one clicks on the links.
Start a Dropshipping Business
Dropshipping is an excellent passive income stream, especially if you play your cards right. Dropshipping involves selling products to customers around the world without leaving your office or desk. As a dropshipper, your work is to fulfill orders from a customer from the vendor to the customer’s doorstep.
The process involves getting the product from a third-party vendor(wholesaler) and shipping it directly to the customer. With dropshipping, everybody wins, starting with you, the vendor, and the customer. Dropshipping is very profitable yet takes minimal effort.
Start a Bitcoin ATM
Take advantage of the current cryptocurrency rage and rake in some serious bucks. Bitcoin ATMs allow customers to purchase bitcoin with cash or exchange their bitcoin for solid cash. The customer pays a transaction fee for every purchase or bitcoin exchange.
Bitcoin is gaining traction all over the country, and bitcoin ATMs make it easy for individuals to jump on the bitcoin wave. Take advantage of this golden opportunity and host a bitcoin ATM near your residence.
With the cryptocurrency market expected to grow to $4.49 billion by 2030, according to Yahoo Finance, a bitcoin ATM is just what the doctor ordered.
Rent on Airbnb
Another great way to make passive income is to list your home on Airbnb. This only makes sense if you have a second home or you’ll be out of your home for a long time. Airbnb rates are great, and you can make a substantial amount of money by renting your home out.
What’s more, you don’t need a standalone home to list on Airbnb. An ADU or apartment works just as well. You can set your nightly price, but don’t set it too high, or you’ll scare away potential tenants.
If you have a second home or extra space, consider renting on Airbnb. It’s an excellent way to make passive income without leaving your home. Renting on Airbnb could be your gateway to the real estate industry, which leads us to our next point.
Get Rental Income
As mentioned above, rental income is an excellent passive income stream, especially for the long haul. While rental income makes money, investing in real estate isn’t as easy as most people think. Plus, it requires a considerable amount of capital to invest in.
If you have extra cash lying in the bank, why not invest it in real estate. You can buy a property and rent it to long-term or short-term tenants. If you’re having tough luck finding tenants for your property, you can always list it on Airbnb and still make a killing.
Invest in a CD With a High-Yield
Investing in a high-yield CD or certificate of deposit is one way to make good money without even leaving your home. CDs allow you to get one of the highest interest rates on your investment.
CDs are safe investments provided you find the right bank to invest in. The catch with CDs is you lose access to the money you invest until the CD term expires. However, it’s a great way to make use of any extra cash you have lying in the bank.
Make Money While You Sleep
Now that you know the best passive income streams, all you have to do is pick one or two that are right for you and make some serious bank. Remember, although passive income streams are effortless for the most part, you’ll still need to work hard to get them off the ground. Consult with financial and business experts on how to earn passive income to find the best income stream that works for you.
For more informative reads, make sure you check out the other posts on the site.