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Yes, it is possible.
This is where passive income comes into the picture. It isn’t a magic trick that will simply put money in front of your eyes. Passive income almost works in a way like planting a tree works. You sow the seeds and the tree grows consistently, even when you aren’t around.
Keep reading to know about passive income and ways in which you can make some extra money on the side!
When you keep getting paid for some work that you have already completed, the money that you are making is referred to as passive income. There are a number of ways this type of income can be generated, for example, royalties from movies, songs or books, and revenue that comes from real estate investments or business investments that you have made. The part that makes it different from regular come is the fact that you don’t have to be present to earn it.
Passive income doesn’t mean that you do not have to work for it at all. Most ways of getting in some passive income require some amount of work, money, and maintenance. It may sound like a task when you first hear about it but if you are able to secure passive income that aligns with your personal preferences and skills, you can make quite a bit of money!
It usually isn’t your main source of income but in case of crisis, this money is very important. It helps you to maintain an emergency fund or avoid falling down the trap of credit card debt, amongst many other things, making this a great way to pursue financial freedom.
There will be tons of people on the internet who will tell you about the thousands of dollars they’re bringing in through their passive sources of income. This means that you will be getting into it with unreal expectations of earning $20,000 a week just by starting a blog or writing an ebook.
Lock those expectations away!
There are some people who end up making a great living from their source of passive income but it is more likely for you to make small amounts of money from a few different sources. This means that you pick a few things that interest you and try them out. By trying a few of these things that you have chosen for yourself, you may find the one thing that you enjoy the most or are making the most money through.
This one thing is what you should focus on going forward. Putting in some time and effort into this will help you turn in more money.
There are tons of ways in which you can create passive income. Here are some of the most popular ones that have helped thousands of people in adding to their income!
The first thing that comes to mind when you’re looking to create a passive income is setting up a blog. It isn’t the easiest way to make money as there won’t be any income in the initial phase but if you work on it consistently, you will be able to generate an income from the blog. If you continue to work on your blog, this small income can even turn into a six or seven-figure income per year.
Before you set up your blog, you will have to do some planning. For example, dating or relationship-related blogs, money-related blogs or diet and fitness-related blogs are the ones that make the most money in the current climate. If you are great at any of these, you should take a shot at it. However, if you are not, pick something else that you can provide insight into instead of hanging on to the market trends.
Even if you take up a broad topic, pick a niche and stick to it.
Affiliate marketing is when online retailers pay you a commission if someone goes on your website and clicks on a link to the online retailer’s product. This, however, isn’t as easy as it sounds.
You can set up a blog or website to gather a good reader base that will click on these links or you can use sites like Medium, Quora or LinkedIn Publishing to find a bunch of people who you can create an online influencer relationship with.
It is important to build this list of people around a particular niche and create a bond with them. Once you have done this, start marketing affiliate products or services to them. Just make sure you personally vet the products so that you don’t lose people from the list.
Another great way of earning passive income is writing and publishing ebooks. The easiest option here will be to write and publish it on Amazon’s KDP. The other is building a book funnel for yourself, but that isn’t completely passive. An example of this would be converting your ebook into a physical book if you offer free plus shipping, extra training for creating one-time offers and audiobooks.
If you aren’t up for this extra work, you can just write the book, publish it and start collecting the income. Just send out a couple emails or post about it on social media. Just keep in mind that the income you get will depend on the quality of the book and your target audience.
The initial phase of writing a book can seem a little daunting but remember that once it is created and marketed properly, it can provide you with a passive revenue stream for years!
Not too many people just have a spare house lying around to put on rent but there are high chances that you have an extra room in your house. This can make you some extra cash on the side while you get on with life.
An example of a great platform to rent your apartment or room is Airbnb. Airbnb is a very convenient format that allows travelers from across the world to stay in accommodations that aren’t as expensive as regular hotels. It breaks up the rentals into three options – private room, shared room and entire home. You receive payment 24 hours after the guests check in but you will have to keep in mind that the company charges you 3% on every booking for their services.
Another good option is VRBO, which has over 2 million rental properties – mostly entire homes – registered with it. It is a legitimate service for both renters and owners where you simply set up your property, get the perfect match and start earning that extra income! If you are planning to rent all through the year, you can pay an annual fee of about $400 and if want to outsource the entire management of the rental, you will have to pay a slightly higher fee.
Finally, make sure that you pay attention to reviews posted by the travelers who rent your place, as that will govern how many people come and stay at your property.
There is something all of you are good at but how many of you think of ways to monetize it? The answer is not many people. A great way to create a passive income is to build an online course that is based on your expertise and passion.
A great way to produce and share the course that you are looking to make is Teachable.com. This website has over three million students, providing you with a great platform to get your content in front of others. A great way to make interesting online courses is adding video lessons, checklists for completing steps that you recommend in your lessons, small ebooks, specialized audio files and informative interviews with experts.
You could also create online guides if you don’t want to get into the hard work of writing articles and creating videos. Putting information in a guide-like format can earn you some extra money.
One of the things that you will do with the money you have earned is shopping! How wonderful would it be if it worked the other way round? Is it possible to earn money while shopping?
The answer to that is yes! There are a large number of credit cards that offer you cashback rewards for using them. These cashback rewards usually range anywhere from 1% to 5% of the total amount that you have spent on the purchase.
While this doesn’t mean that you are getting in more money, the rewards give you the chance to earn some passive income by reducing the amount that is going from your accounts. Similarly, a lot of cards give you points when you use them and over time these points can translate to some free flights across the world or stays at some great hotels.
There are also tons of other options when it comes to creating passive income but you have to make sure it is something that you are comfortable with. Work hard in the initial phase so that you can sit back and reap the benefits later!