The current economic landscape requires people to carefully evaluate their financial situation and take preventative measures if they wish to protect their money. Many financial advisors urge people to invest their money into passive income sources, so they can earn revenue without actively working. Countless money-making opportunities are available — you can invest in the stock market, rental properties, and even share internet bandwidth to earn money. It is one of the best ways to build wealth and get ahold of your personal finance.
What Is Passive Income?
Essentially, your income streams can be divided into two categories — passive and active revenue sources. Many employed people sell their services to a company and earn money actively. Notably, active income can come from freelance work while working on a time-for-money model. On the other hand, passive income is money generated from prior investments, even if those investments require initial work. Some passive income streams include rental properties, blogging, investing in stocks, and more.
While building a passive income source takes time and effort, the rewards include making long-term money without further involvement. You should reevaluate your investment risk and expectations and perform maintenance work to keep earning money without active work. Nevertheless, this extra effort pays off in the long run, and you can enjoy financial liberty after you’ve put in the work.
How To Make Passive Income: 5 Ways
Thanks to the internet, we’re faced with different money-making opportunities daily, many of which can become a passive income stream. You can employ different skills from your professional and everyday life — consider blogging about your hobbies or starting an online course about time management! There are various ways to monetize your interests, and you can easily make money passively. Here are five ways you can earn passive income.
1. Blogging
It’s the old-school way of making money online. You might have noticed that whatever topic you search for online, you’ll find blog posts with people discussing it and giving opinions and advice. It’s a popular hobby that people have successfully monetized with placed advertisements, sponsored posts, and brand deals. However, building a well-rounded blog that captures the reader’s interest takes time. You’ll need to hone your writing skills and be passionate about your chosen topic.
Nevertheless, it can be a passive income source that you can profit from in the long run. The more posts you publish, the more ads you can place. Notably, you’ll get paid for the number of people that view your blog and the ads, so you should focus on building an active audience and connecting with your readers to make money from blogging.
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2. Online Courses
If writing is not your strongest suit, you can consider virtual teaching by filming lessons on various topics. E-learning platforms have gained immense popularity over the past few years as more people have become interested in gaining new skills and upgrading existing ones. As the demand rises, there is room for more supply. That’s where you come in — you can build an online course, make it available on a remote learning platform, and make commissions from each student.
The money you make from selling your online courses is passive, as you don’t need to be actively involved in any other work besides collecting paychecks and promoting your course for more sales. Notably, different learning platforms will offer various rates, so research your options to maximize your earnings.
3. High-Yield Savings Accounts
Investing in stocks takes skills and knowledge — the best time to do it is now. Investing in stocks during an economic downturn as the price of stocks and bonds decrease becomes more accessible. However, you need to be well-informed about the market and the company you choose to invest in. For example, if you decide to put your money into self-driving car manufacturers like Tesla, you’ll need to keep an eye out for its production and quarterly performance. Is this hassle not suitable for you? Try putting your money into a high-yield savings account as an alternative to investing in stocks!
High-yield savings accounts are primarily famous for their higher savings rate than the ones for regular savings accounts. Due to the increased competition between Internet-only banks and traditional financial institutions, customers can choose to open a savings account with the best deal. You should consider putting a portion of your income into your savings account as often as possible. This way, you’ll accumulate more money from the savings rate, making it a viable passive income stream.
4. Rental Properties
Have you saved up a large sum of money? Consider putting it in low-risk investments that will protect your money from inflation. Real estate is one of the most popular investments due to its long-term appreciation rate. Furthermore, you can rent your property and earn additional income without much hassle. Many property owners achieve financial independence because they make passive income from rental properties that they can later reinvest and earn even more money.
Keep in mind that due to the housing crisis, you might be unable to find a suitable house to purchase. Nevertheless, remember this investment type and try to diversify your portfolio at a later stage with different passive income streams. You can list it on specialized websites and applications to find clients easily.
5. Passive Income Applications
If you want a hassle-free and time-friendly passive revenue source, check out passive income applications, also known as proxyware. One of these is Honeygain. Honeygain is a free Internet-sharing app. This app pays you depending on the amount of traffic you share. It’s a passive income stream that pays you small amounts of money, which you can use to cover your daily expenses or go to savings.
You’ll get $3 for every 10GB of traffic, and you can boost your earnings with special features, a lottery, and winning contests on Honeygain’s social media profiles. Moreover, you can refer people to Honeygain with your unique code, and you’ll get a permanent 10% bonus equal to your referral’s daily earnings. Companies use your shared traffic to perform ad verification, price comparisons, and more. Notably, you share only publicly available online data, and Honeygain doesn’t access information stored on your device.
Final Word
If you’re looking for ways to make passive income, plenty of options are available. With creativity and effort, you can find passive income streams that suit your needs and lifestyle. Depending on the time and investment you’re willing to make, you should consider blogging, real estate investing, or passive income apps like Honeygain as a viable passive income stream.
