If you’re truly looking to take your finances to the next level, you should be thinking about passive income.What is passive income exactly? It’s pretty much exactly what it sounds like: money you make passively or don’t have to continue actively working for.
An example of active income is wages earned for performing a job. An example of passive income is renting out a property you own. With passive income, you may have to do extra work or spend extra money to get started, but eventually, it will pay off.
You’ll be able to make money in your sleep, literally.
But how do you get started?
What are some ways to make passive income?
Read on to find out.
#1: Invest in the Stock Market
Perhaps the most obvious way to make passive income is to invest in the stock market.
If you’re feeling intimidated by the prospect, start with index funds. It simplifies the process a bit.
All you have to do is choose a market sector you’d like to invest in, such as renewable energy or healthcare.
Dividend stocks are another great way to invest.
Although they are higher risk than index funds, you can stand to make good money if you choose the right company to invest in.
#2: Earn Cash-Back Rewards on Credit Cards
Some credit cards offer cash rewards of a percentage of purchases made with the card.
It’s a great way to earn money while you spend money.
Some cards offer a higher payback percentage for a specific category, such as money spent on travel.
You may be able to earn enough money for free flights and hotel stays!
#3: Dabble in Affiliate Sales
There is no shortage of companies that are looking to have their products promoted and reviewed.
If you have a site with consistent traffic, people will pay you to promote their product with affiliate marketing.
You’ll need a blog or an active website.
However, you can earn money through an activity you might already enjoy by promoting goods and services on your blog or website.
The best way to succeed in affiliate marketing is to promote products relevant to your target audience.
#4: Start a Blog/Vlog
Do you have something you’re passionate about that others might be interested in hearing about or watching?
Maybe you’re great with makeup, celebrity impressions, or enjoy reviewing popular movies.
Maybe you have a gift for public speaking and sharing opinions.
If so, consider starting a YouTube channel. Or a blog. Setting up a blog takes just 20 mins.
Although work goes into creating and editing content, once you start racking up views, YouTube videos can be an ongoing income source.
#5: Become an Airbnb Host
Do you have unused space in your home or apartment?
Maybe you have a guest room, or perhaps you’ll have an empty room for a month while you travel.
Renting your space on Airbnb is a great way to earn passive income off space that is just sitting there otherwise!
If you live in a desirable tourist destination, you can stand to make a good deal of money this way.
If your hourly wage or salary isn’t bringing you close enough to your financial goals, passive income can help.
You may have to put in some effort to get started, but you’ll find in time that you’re making more money with less effort.