How to Increase Your Net Worth With Passive Income
Table of Contents
- How to Increase Your Net Worth With Passive Income
- Why is Earning Passive Income Important?
- Do You Love To Write? Then Write an E-Book
- Create A Blog and Do Affiliate Marketing
- YouTube Monetization
- Traditional Bank CD’s
- Selling Your Photographs
- Create Your Own Small Business With Minimum Investment
- Passive Income Requires Work
However, before we get started, some of these strategies involve time, money, or both; but, don’t be discouraged because once you master these different passive income strategies you will be swimming in money before you know it!
Why is Earning Passive Income Important?
Earning passive income is extremely important to climb up the financial ladder of success because it allows you to make money without having to use your valuable time in doing so. That is of course when you get the ball rolling. At first you might have to have a lot of patience to master these strategies, but they are tried and true, so that means they are proven to work. If you are like me, and don’t want to spend hours upon hours slaving away at a nine to five job, then there is no better time to change than now. We all know life isn’t a bed of roses, but that doesn’t mean we can’t make it that way! Don’t fool yourself in getting wrapped up with a can’t do attitude either. Making excuses day after day, or week after week will only prolong your path to success, and eventually it will be too late to make a positive change in your life.
For example, if you wait around until your seventy or eighty years old, you will probably be looking back at your life, and realizing you had so much more potential; but, if you never took the time to make a change, then change will never come. That is the difference between people who have financial freedom and those who don’t.
Furthermore, sometimes there is risk in creating success, and the quicker you come to grips with that, then the faster you can start making those necessary changes in order to start creating success itself. These strategies aren’t for everyone, and you might like your run of the mill daily routines, but there is so many different ways to earn money that it is stupid not to. Look at it this way, with some of these upcoming strategies you will not only be helping yourself, but you will be helping your family as well. Let’s not waste anymore time discussing why or why not you should do this, and jump right into the deep end so we can get you started.
Do You Love To Write? Then Write an E-Book
If you love sitting down with a pen and paper to create fictional stories, or maybe you are an expert in your field that could give others some useful advice, well then you should share your knowledge with the world by writing an e-book. This is something that could take considerable time so remember to be patient.
However, if you are persistent, then you could obtain great passive income from places like Amazon or kindle. Self-publishing is the way to go in this day and age, so no need to try and spend years and years trying to get your book on actual bookshelves in brick and mortar stores. You should know that once your manuscript is finished you will have to learn how to import it to a certain filetype that these places want, but that is no problem and there are many how to guides online to help you complete this process. Also, I should mention that if you will also need a cover for your e-book, and if you aren’t a graphic designer, then it is best to hire a freelancer on places like Upwork or Fiverr, because you can get great work done at very good prices. The hardest part about doing this is taking the time to sit down and actually write the book itself, and I believe that this is the only con to this passive income strategy.
In fact, many people that consider themselves “digital nomads” serial publish e-books, and make great monthly income from their works. When you finally complete that e-book you will want to also have your social media accounts ready to attract new readers to enjoy your work, because promotion is key here, and will earn you many more sales than if you just posted your work on these sites. One more thing, don’t forget to do some price research. Many great books on places like Amazon don’t sell because they are priced too high, so please keep that in mind too. So if you are thinking, “wow writing an e-book might require some work”, you would be correct, but wouldn’t it be worth it once you start earning those big fat paychecks from putting all of that blood, sweat, and tears into that book?
Create A Blog and Do Affiliate Marketing
If you still love writing, but you might think an e-book would be a tough first option to tackle, well start your own blog. Write about something you are passionate about, and yes this will take time too, so for all of those out there looking for a quick way to grab a dollar, this isn’t it. Once you gain a nice follower base through your blog you could add an advertisement somewhere on the site linking your followers to a specific product, or you could actually reach out to companies and offer to do product reviews. Add some good writing with your reviews and you could be rolling in the dough soon enough, and I even know people who actually end up making so much that they go on to hire writers for them, because they just don’t have the time to write like they used to. It is hard to believe that you can treat blog writing like a business, but you definitely can, and it can be very lucrative if done properly.
Another way to generate some great passive income is to do some vloging. Yep, video blogging. The world of Youtube can be a great way to earn money from advertisements as well as earning passive income from being a marketing affiliate. Think about stars like PewDiePie, or Ray William Johnson. They both earn millions just making videos and gaining revenue from their advertisements. They do have millions of subscribers, but if you work at it, then who is to say you can’t too? I would suggest if any of you take this route that you also pick a specific niche that you are very passionate about, and use that creative brain of yours to make something happen. People love great content, so get out there and get started. Try and market yourself, or do videos about things that no one has done before; but, don’t get really crazy, and always make sure what you decide to do is legal. If you are good at comedy, then vlog about comedy, or maybe if you are good at how to guides, then yes you can vlog about that too just like you can write about that in an e-book if you chose to. The possibilities are endless with this one, and it doesn’t hurt to stop thinking about it and just DO IT. Just think if you got into this kind of thing back when Youtube was getting really popular, I bet you would have a ton of subscribers by now, and you would be sitting at home drinking a can of soda and counting the dollars rolling in.
Traditional Bank CD’s
If you would like to take a less rewarding, but more traditional approach, try saving up some money and buying some bank CD’s from your bank. A bank CD is known as a certificate of deposit. They are very similar to savings accounts, but are a very low risk option to accruing money in the long term. If you buy any certificates of deposit, just remember to not withdrawal them early or you will surely be penalized by the bank that issued them to you. Typically, when you buy these CD’s you will leave them in there for at least five years, and if you don’t, well you are going to be getting socked at least twelve months of interest as a penalty. If you happen to purchase these I also encourage you to read the terms in the fine print very carefully, because some banks can actually close your CD’s if they choose to, and you might be charged a certain amount of money for receiving a certified check from the bank.
Selling Your Photographs
This is for the creative entrepreneur as well, and it doesn’t take as much work either. If you love taking pictures, and you can take some good ones, well you might be in luck if you sell them on places like Shutterstock, or elsewhere. Shutterstock won’t offer you payment in terms of royalties; however, other places will let you sell your pictures for royalties. Meaning every time someone buys your picture, or video in some cases, then you will earn a percentage of what they paid for the image themselves. Contributing solid content like this is another great way to keep your bank account from hitting rock bottom. However, like with everything else, you need to spend the time to take the photos, and upload them to different company websites to make those dollars! Most of the articles you read online, or websites you visit that have specific templates like WordPress or Wix all use stock photos from somewhere.
Create Your Own Small Business With Minimum Investment
This strategy involves you to have a little bit of capital, but not much. We are going to be discussing three different easy on the wallet small businesses that you could probably get going tomorrow if you really wanted to. The first small business you could try creating is a cleaning company, but the trick here is to hire employees to do the work for you. Almost every cleaning company I know does this, and when I worked for one years ago they followed the same business plan that I just gave you. They hire usually at low starting wages, and they reap the rewards of business! You might have to do a bit of research on deciding if you are going to be an industrial cleaning company or a residential cleaning company, or perhaps you want to do both. Remember to research the best organic non-toxic cleaning agents to hit that particular niche as well as deciding on the best cleaning chemicals that are not considered organic. Yeah, I am talking about the hard hitting cleaning agents that will probably require good safety gloves, and possibly breathing masks too. Just make sure your employees are well geared and you keep them safe, because if not, then you are ultimately liable!
Moving on, let’s talk vending machines. When you were growing up, think about how many vending machines you have probably seen back then, and throughout your entire life. Well these things are a great way to sit at home, collect money once in a while, then rinse and repeat. As you grow your vending machine business you can add more and more machines to your lineup, and just keep building your nest egg. The next business only requires you to have a room available in your apartment, or your house and you can post in on websites like Airbnb.com. Renting out a room, or even your entire house for a few days out of the month can earn you some serious cash flow. Also, like I said, I have even heard of people renting out rooms in their apartments for reasonable rates to attract business, especially if you are living in a great location. What I mean by great location is like living near a hot shopping center, an airport, or even a few high priced hotels. Many travelers are more interested in saving money than spending it, so this could be a great long term passive income if you approach it correctly. If you happen to own a few extra properties, then this strategy is one that could net you tens of thousands a year if you don’t use your other properties much, and if you don’t, well rent them out! What is good about this is that usually people can rent their spaces out for as much per night as a hotel, and you will be making bank like the Hilton in no time!
Passive Income Requires Work
If anyone reading this article think making money is ever easy, I hate to break it to you, but it is not. All of these above mentioned options are just like running real businesses, and some effort is involved. If no effort was required, then we could all grow a money tree, and never have to worry about working again. You get what you put into life, so don’t be lazy. That doesn’t mean after you put in the hard work you won’t be able to be lazy at some point; however, you need to get the job done first in order to do this!