We all remember 2020, right? Well, given all the real mess, it’s only logical that a lot of people are on the hunt for earning opportunities and sources of passive income. Whether you want to work less (or not work at all) or just increase your regular income: your bank account will be grateful if you put some money in there. And you don’t have to work hard to start earning more. In fact, there are a lot of ideas on how to create passive income. At the same time, with a minimum investment of time and effort. In this article, we will outline a number of ways to generate passive income and explain the main pros of each.
Okay, let’s see what makes income passive?
Basically, passive income is when you don’t have to put in too much effort 24/7 to make money (in other words, making your dream come true). You can learn more about this ideas and passive income in general by reading the content on Income Artist.
1. Start an online store
Want to promote a product?
While this may seem like a big task, managing a small to medium-sized online store does not necessarily take too long. While you may not be able to accurately label income as passive as you need to update your website and tools, investing in promoting your online store is a great way to create passive income online.
Benefits of an online store
-The ability to sell anything. Whichever product range you choose, chances are there is a niche for you.
-Direct income. This is one of the ideas on how to create passive income where you receive money directly for every product sold.
-Scalability. An online store brings income both in the short and long term – from pocket money to thousands of dollars.
2. Start blogging
Blogging is the perfect way to turn a hobby into a profit. Regardless of what interests you have or what you have to say, there will be an audience willing to listen or read about it.
In the short term, a blog is a good place to share your thoughts and ideas about everything. And over time, the attention and traffic that you manage to attract to your blog can become a way to generate additional income.
The benefits of blogging
-Discuss any topic. Whatever you are interested in, a blog is a place where you can turn your dream topic into cash flow.
-Create constant traffic. Once your blog is up and running, and you have a reliable traffic source, it’s easy to maintain.
-Be independent. You don’t need to partner with anyone to start your blog. This is one of the sources of passive income that you can completely control yourself.
3. Affiliate marketing
You’ve probably heard of affiliate marketing before, but did you know that this is one of the most popular (and profitable) ideas on how to create passive income?
Affiliate marketing assumes that you (the publisher) send traffic to third-party companies (the advertiser) and receive a share of the revenue they generate from sales.
Whether you have a blog, podcast, YouTube channel, or just a mailing list, all you need to make money through partners is relevant traffic.
Companies in most industries run affiliate programs, so you can pretty much choose the niche that you think promises the most revenue.
This passive income idea is perfect for those who really want to reach the pinnacle of passive income.
Affiliate Marketing Benefits
-High profitability. Successful partnerships can generate millions every year.
-Passive source of income. It is one of the cleanest sources of passive income that allows you to make money while you sleep.
-B2B income. You get paid by companies, which means you don’t have to deal with customers yourself.
4. Real estate
It may seem like real estate is an investment only for the rich, but with the help of real estate investment funds, anyone can get a piece of such a share.
You just need to invest in the amount convenient for you and receive passive income corresponding to the size of your investment.
The most important thing is to pay attention to what you invest your money in. It is important to evaluate the land and the attractive location well. Bali Villa Escapes would be an excellent example of a good investment.
Benefits of real estate investment
-You don’t need to spend all of your money on real estate purchases to generate passive income.
Managed property for you. You can figure it out once and forget while the trust manages the property you have invested in.
-High income. Given the amount of risk you decide to take, this form of investment can be very profitable.
Index stocks
As you know, the most successful investor of all time, Warren Buffett, recommended investing in index stocks, thereby providing passive income in the stock market in the future.
An index fund is a form of mutual fund that holds stocks of all securities within a given index. This means that the performance of the fund, and therefore the money you invest, depends on the performance of the index as a whole.
As a passive income, investing in index stocks is similar to keeping your savings in a high-yielding account, but with slightly higher potential risk and thus reward.
Benefits of index funds
-Low fees. The fees associated with buying and processing index stocks on the investment platform are generally significantly lower than with other types of stocks.
-Low tax. In general, index stocks generate less taxable income than comparable stocks with dividend payments.
-Low risk. They are highly diversified stocks, making them an excellent choice for low-risk investments.
Conclusion
Unlike most jobs that require you to work 8 hours a day, passive income is about lucrative business ideas or projects that you can simply set up and forget. Don’t be afraid to start something new and keep in mind that income doesn’t mean that you should work all day long, you just need to be smart.
So, check out all of our ideas and see if they match your interests.