The goal is freedom.
Freedom of choice. Freedom to buy the luxuries of life. Freedom to enjoy life without hassles. And you realize this when you work for 9-5.
Your paycheck is never enough to cover your bills, and it never leaves enough for fun. You recognize that in order to create a wealth and wealth mindset, you will require additional sources of income. Passive income ideas perhaps.
Ideas that generate income despite your minimal involvement in them There has been a misunderstanding about what passive ideas are. Many people believe that passive ideas do not necessitate hard work or time investment.
The contrary is true. In the beginning, a lot of work has to be put in. This work allows the idea to develop and grow into maturity, allowing it to be passive.
Let’s get into 13 passive income ideas that will generate more income streams and hopefully you can gain financial freedom.
*Disclaimer: Not all investment ideas will suit everyone. It is best to do your own research before buying or investing. We are here to guide you, and give you ideas only.
1. Dividends and stocks
Investing in stocks is perhaps the most common of all passive ideas. We falsely believe that it’s all about buying a stock and waiting for payment in the form of dividends. The truth is that a lot of time and research has to be put in initially. The right stock has to be identified to generate wealth. Identifying the right stock involves reading and analyzing volumes of data and information. This analysis can be taxing, but since the rewards are great, especially in the long term, it’s worth considering.
To get started, you need to open an account with a trusted broker. A broker allows you to buy and sell stocks. It would help if you were careful when choosing a broker. The fees charged and regulations have to be carefully analyzed.
2. Real estate
Investing in real estate is a great way to generate additional income. The initial investment is quite enormous, but the returns are great. To make Real estate completely passive, you can hire a management company in charge of your real estate properties.
Opportunities in real estate are extensive. You can decide to buy a building or invest in extensive development. If you are unable to buy property, you can invest in a development company. This investment will allow you to generate additional income even though you don’t directly own the properties.
3. Money market funds
Are you an investor who wants money to work for you? Well, a money market fund does precisely that. Investing in a money market fund allows your money to earn interest through multiple investments.
The interest accrued is paid to you by the fund. Another option is investing in a high-yield savings account. Investing in these companies allows you to generate a safe source of extra income.
4. Developing an App
Technology serves to solve problems; it makes our lives easier. The world is full of so many tech billionaires. Apps like Instagram, TikTok, and Facebook have created a new generation of ultrawealthy billionaires.
App development is all about solving problems, and it does not have to be a complex problem like climate change. It’s about solving problems that we encounter daily. There are several platforms where you can sell your app. Google’s Playstore and iOS app store are the most common, although there are more platforms on the internet. You get paid for the number of app downloads and adverts running on your app. It’s a great way to make some passive income.
5. Start a YouTube Channel
Do you have a hobby or passion that you would like to show the world? YouTube offers a platform that allows you to do just that. YouTube has created new millionaires who get paid by creating content.
The ideas for a YouTube channel don’t have to be complex. It can be as simple as talking about life on your continent or your favorite hangout joints.
6. Start an online business.
The internet has created unlimited opportunities. New markets have been opened. People’s needs are insatiable hence the need to satisfy established and emerging needs.
E-commerce is the future of the business world as it allows goods to be shipped to any part of the world. A case example is Amazon and Alibaba; E-commerce companies that have billions of dollars in turnover revenue. It’s no coincidence that the richest man in the world is involved in E-Commerce.
7. Start a blog
Blogging has become famous in the past decade. Writing enthusiasts have created these web pages that allow them to tell their stories to the world. Blogging is a great way to make good money.
It works mostly like YouTube. You create content, scale it, bring an audience, and then you can monetize the visitors. There are many ways to earn money through blogging. It can be through AdSense, affiliate marketing, sponsored content and so.
8. Start a course on Udemy.
Knowledge is insatiable. The world is always ready to consume knowledge. There are millions of people on earth who quench for a skill or knowledge that you possess. Udemy allows you to create an online course that you can sell on their platform.
Alternatively, you can sell a course on your website. It might take some work and time to create an audience, but the returns are worth it. Selling on your website enables you to sell your course on your terms instead of on Udemy, where the course may be heavily discounted during specific periods.
9. Invest in Cryptocurrecny
This one is high risk and high return. Did you know that the price of one bitcoin in 2010 was just $0.08. Now which is around 32,255.30 USD now. Therefore, if are in your 20’s and can take the risk, you should invest in cryptocurrency.
Do remember that this asset is still very volatile so only invest the money which you can afford to lose and do proper research before investing. That said, the currency has the potential to make you wealthy.
Renting that extra room in your home on Airbnb can be a great source of extra income. Airbnb allows you to list the extra rental space you are currently not using. The great thing about Airbnb is that you can list and delist your property as you wish. This flexibility is one of the main advantages of Airbnb.
11. Creating your website
The internet is an abyss of opportunities. Creating your website allows you to have control over your product. You can create a freelance website where clients post work-seeking employees. Or a website where you list your products for sale. Websites are good marketing agencies and can be a great source of extra income.
12. Affiliate marketing
Affiliate marketing is one of the best passive income ideas around. Almost every major brand has an affiliate marketing program where you are paid a referral bonus. The downside to this idea is that some programs pay a low amount. It is, therefore, vital that you do enough market research before embarking on a program.
13. Writing ebooks
Authoring has traditionally been a great source of wealth. Most best-selling authors are millionaires. Ebooks exploded into the scene in 2009-2010. Since then, many authors have made a fortune through their writing skills. The downside to this source of income is that the industry is super competitive. To make it, you have to cut the average.
I want to quit my 9-5 and create real wealth. I want an extra source of income to fill the voids left by my 9-5 income. The ideas discussed in this article can help you achieve your dreams. The ideas are manageable; hence it’s possible to do both. Work your 9-5 and run your side hustle. The ideas are also high-income generators; hence it’s possible to quit your day job and generate wealth from them.
We live in a culture where materialism and showboating have become cultural norms. As a result, it’s difficult not to be influenced and driven by it. Naturally, we find it difficult to save money because we want to be like everyone else.
But you don’t have to live paycheck to paycheck if you take a stand against your bad financial habits and start investing early. Investing is one option; we have listed numerous passive sources of income that will generate your wealth while you sleep.