Make Passive Income, how good it sounds, right? Having a passive income source can be very beneficial to be financially free. It helps in our hard times and in good times too, for example when the government of various countries decided to lock down their country due to the COVID-19 pandemic. That was the time when most people didn’t have any source of income because their corporations, organizations, shops, etc were closed. Millions of people lost their jobs, they faced extremely hard times during lockdown. But, people with a passive income source survived quite easily.
Let’s get to the point, how can you generate passive income? Many people think that they will start generating their passive income overnight. They think they will have a steady flow of income without working. Yes, it is possible but it would not happen overnight either in just 1 week, month, or a year. It will take time, you have to work in the initial stage of your business or anything else you decide to do.
Now, maybe you are confused about what you should do to generate passive income. So, for your convenience, I have made a list of the top 8 best ways/ideas that can help you to build your passive income source. But before that, I want to consider a few myths related to passive income.
Myths Related To “Passive Income”
Myth 1. Making Passive Income Is A Piece Of Cake
Let’s be honest, most people think passive income can be generated very easily but that’s not even true. If you are also having this type of mentality, please rinse off this from your mind. It wouldn’t be going to happen until and unless you are ready to put your time and energy into it. If you believe in this myth then you can’t make passive income on a good level.
2. You Need A Lot Of Money To Start A Business
I am sure that you have met people who have told you that you should have a lot of money to start a business. Well, that’s not true. You can start investing in the stock market for $1000 or you can start a blog that will not cost that much money. At the end of the day, your willingness to put energy and time really matters.
Now let’s start the list of ideas to make passive income.
8 Best Practical Ideas To Make Passive Income
1. Affiliate Marketing
When a website owner, blogger or social media influencer promotes a third party’s product by involving an affiliate link to the product if someone clicks the link and makes the purchase a commission goes to the site owner.
Having a site can help you a lot in this business. If you are interested in the product you are selling that can help you more to excel in your sales.
This could be a slightly easy way to make passive income, still, you will have to invest your time in it.
2. Write An Ebook
Writing an Ebook could be slightly hard but when it is done it could be a great source of passive income for a long period like a year or more. Maybe now you are wondering where you can sell your ebook. Well, you can sell it on a website or you can set an affiliate arrangement with another website that provides valuable content related to your ebook.
3. Sell Your Product On The Internet
This is one of the best opportunities that you can use it in today’s era. You can sell your physical products or you can sell your digital products.
If you are thinking that you can’t make that much money in this field, think again. If your product will really worth it and marketed well then your product can do wonders.
This method has been proved very beneficial and effective to make passive income.
4. Invest In Real Estate
Investing in real estate could be the best way to make passive income. Also, it could be slightly risky. Still, when you have an established property then there would be a matter of managing the property and keeping it performing well.
A property manager can manage your property very well, they will charge about 10% of the monthly rent. Professional management can make your profit much higher.
There is one more benefit that I would like to mention here is the loan pay down. When you will buy a property on a loan, renters will be paying off the part of the loan.
5. Buy A Blog
Blogging is becoming a very definite way to make passive income. In today’s world, many blogs are created and getting abandoned by the blog owner. Buy a blog that is having a decent amount of traffic as well as a slight cash flow.
You will get a monthly revenue from google Adsense based on the ads that Google places on your site. Maybe there will be an affiliate program also. So, both will be very powerful sources of passive income.
6. Buy High Paying dividend Stocks
You can make passive income by establishing a portfolio of stocks that provides a high paying dividend. It can give you income regularly and that will a lot higher.
There are always greater likelihoods of receiving capital appreciation. If you go with this idea then you can earn in two ways, one is dividend and the second one would be the capital gain.
7. Start A Youtube Channel
If you are having skills in video creation or a desire to make videos then this would be perfect for you. YouTube can be a fantastic way to make passive income. Let’s consider how is that possible.
Firstly, you have to provide valuable knowledge that solves problems or entertain people. When you will be proving top-notch content then you will have an audience that supports you. When you have an audience, you can sell them your product like T-Shirts or any other product. If you are interested in content creation then YouTube will be the finest option, you should definitely give it a shot.
So, these were the 7 practical ways to make passive income. I hope you have found an idea that can be effective and beneficial for you. Now, go and start planning to build your passive income source and take that plan into action.