What do you think of when I say the words “passive income”? For me, I like to think of it as making money while I sleep — or better yet, while I vacation.
Passive income is generally defined as a stream of income earned requiring minimal to no effort by the recipient to maintain it or to grow it. Examples of passive income can include rental income and any business activities in which the earner does not materially participate.
If you want passive income for life, however, you have to get to the point where your assets are earning for you. But first, you’ll have to put in one of three things: time, money, work, or all three.
You can earn passive income whether you work a 9-5, own a business, are a blogger, or just have extra cash set aside to invest.
The seeds you plant today are the money will grow tomorrow.
Reverse passive income: cutting your ongoing monthly expenses And putting away the savings for a rainy day or an investment opportunity!
Rent or sell an existing asset: Renting out even a single room in your personal space, or equipment you own can be a great way to earn income passively on things you aren’t currently using.
Credit Card Rewards: Earn passively just from spending the money you already do, in the form of Cash back, gift cards, and travel awards.
Take advantage of sign-up bonuses for new cards — earning the equivalent of 20% — 40% cash back in travel or statement credit.
Do you write a blog, have a website or a YouTube channel? Two words: advertising dollars.
Display ads like Google Adsense might be a great way way to earn a few passive dollars from your Blog or website traffic.
If you don’t want to clutter your site with ads, you might consider Non Display ads. These allow advertisers to place retargeting scripts on your site, allowing companies to gather information and market to your audience on Facebook or other channels.
Utilize Google’s built-in monetization tools for YouTube accounts with 1,000 or more followers. Sell the ad space in your uploaded videos.
Affiliatize your blog. This is a passive income technique where you can sign up to promote certain products or services on your site, for which you will be paid a flat fee or a percentage of the amount of the sale. Just by referring business their way, you can earn a percentage of each sale generated.
You can find affiliate offers by contacting vendors directly or on dedicated websites such as ShopHerMedia.com.
Invest in CD’s: CDs are simple, straightforward, and a low risk way to earn interest. If your goal is to make money while you sleep, there isn’t anything more passive than CDs. The longer the CD length, the higher the interest rate typically is. Your rate is locked in, regardless of how interest rates fluctuate during the length of your investment.
Dividend Investing: Buy shares in companies with a history of good dividends, and reinvest the dividends automatically back into more shares.
Buy cash-flowing assets: This is how you make money with money. These options include dividend investing, business lending, real estate. These are great options — if you have money to invest!
There is no reason you CAN’T make some form of passive income, regardless of how much money you have to start. Start big, start small…just START.