With COVID-19 causing such a lack of economic security, an increasing number of people are turning to passive income streams to become less reliant on their primary sources. But generating passive income streams isn’t just for times of uncertainty and really there is never a bad time for effortless in-flows. Next time you are looking to go traveling, take a work break or earn additional money, these simple tips could assist your passive income.
The term passive income scares a lot of people, as many assume you need a large amount of money, to begin with (such as the funds to purchase a house). Fortunately, though, that’s not the case. The following are eight successful ways to earn a passive income from the comfort of your home.
Real estate investments
Owning real estate is one of the most common forms of passive income, however as previously mentioned, the up-front cost of a deposit can be fairly significant. Our best advice is to consider the long-term benefits in comparison and accurately map out how many months of rental income you would need to pay back that deposit.
With a wide variety of tutorials and information readily available on the internet, many people choose to find the least costly ways to upgrade their property before putting it on the market. Just upcycling some furniture or changing some hardware can create additional monthly rental income to enjoy.
Develop and sell online courses
The demand for online courses is more significant than ever. As we spend increasing amounts of time indoors, many people choose to enrich their skills with accessible e-learning. Course creation has risen by 5% in recent years, with high-traffic courses earning as much as $50,000 monthly.
Exchange-traded funds (ETF)
Exchange-traded funds or ETFs are a collection of shares, bonds, or commodities such as gold or silver and are traded in the same way as an individual stock. Investing in ETFs can yield both capital gains and dividends. A benefit of ETFs is the lower risk they involve compared to regular stocks; however, it is important to note there is still risk involved and you should do your research to see if an ETF is worth the investment.
Holiday rental sites such as Airbnb
If you have chosen to invest in real estate or are lucky enough to have multiple homes; the Airbnb business is booming. Short-term rental sites give you the opportunity to charge far higher prices per night to rent out your property than long-term renting. However, your income stream is far less consistent.
Many hosts list their property with a minimum night stay requirement to control their passive income. Short-term rental properties can require very little physical involvement. Liberate yourself from attending the property by investing earnings into outsourced housekeepers and opt for secure key boxes or coded doors.
Robo-Advisors are one of the most passive forms of income known to investors. Not only are they broadly accessible, but Robo-Advisors cost just a fraction of the price you would pay for a traditional financial advisor to manage your investments.
Kickstart your financial journey with a Robo-Advisor by developing a personalized portfolio which states your financial goals, investment timeframe, and risk level. Automation of numerous trade decisions will be made based on your portfolio.
Peer-to-peer (P2P) lending
Peer-to-Peer Lending or P2P is a way for consumers to acquire a loan directly from an individual investor without incorporating a financial institution. While P2P Lending attracts borrowers with rates more desirable than those offered at banks, investors can make up to 3%-12% returns on repaid money with high interest.
Affiliate marketing is on the rise
Earn simple passive income through blogging, website linking, YouTube, or any digital site that receives a healthy traffic volume. Generate kickback every time a consumer interacts with the product or service recommendation you advertised. Although content creation can take some time, once published, consumers can freely engage, and you can yield the benefits while focusing your attention elsewhere.
Invest in dividend-yielding stocks
Becoming a shareholder of a company with dividend-yielding stocks is one of the most passive forms of income. Put some practice into investigating the market selection and diversify your portfolio and you could receive substantial rewards as a result. Additionally, by tracking your investments you may choose to sell at a high growth point and benefit from those returns too.
Save yourself the extra hard work and create a steady flow of passive income. Remember to diversify your investments to reduce the risk of loss. A little groundwork at the beginning can generate a constant source of income and allow you to focus your attention and efforts on whatever you want.