We may earn money or products from the companies mentioned in this post.
Passive Income Should be on Everyone’s Wishlist
Passive income should be on everyone’s wishlist.
It is described as income resulting from cash flow received on a regular basis, requiring minimal to no effort by the recipient to maintain it.
Passive income streams require an upfront investment and a lot of nurturing in the beginning.
After some time and hard work, these income streams start to build and are able to maintain themselves, bringing you consistent revenue without much effort on your part.
Adding passive income streams to your portfolio can help you increase your earnings and accelerate your financial goals in tremendous ways.
For example, you can use passive income streams to help you get out of debt or achieve financial independence sooner.
Before we get into the passive income idea, it’s a good idea to first clear up a couple of misconceptions.
Although the word “passive” makes it sound like you have to do nothing to bring in the income, this just isn’t true.
All passive income streams will require at least one of the following two elements:
1) An upfront monetary investment, or
2) An upfront time investment
You can’t earn residual income without being willing to provide at least one of these two.
Passive Income Ideas:
There is a big list of passive income ideas you can try regardless of the category you fall in.
I have listed only those that have a greater chance for success:
1. Dividend stocks: Dividend stocks are a tried and proven way to earn passive income.
You will have to perform an in depth research to find good stocks and invest a significant amount of money to receive large dividend checks.
However, if you consistently invest money into dividend stocks you can amass a nice residual income over time.
2. Peer to Peer lending is the practice of loaning money to borrowers who typically don’t qualify for traditional loans.
As the lender you have the ability to choose the borrowers and are able to spread your investment amount out to mitigate your risk.
The most popular peer to peer lending platform is Lending club.
What’s great about Lending Club is that investors are earning 4-6% returns on average – and that’s all passive income.
You simply lend your money and you get paid back principal and interest on that loan.
The median return on cash flow is 4.1% – which is better than any money market fund you’re going to find today.
3. Rental properties: A cash flowing rental property is a fantastic way to bring in a monthly income.
To make this truly passive you can outsource the running of the properties to a management company.
A significant initial cash outlay is often required.
4. CD ladders or Money Market Funds: Building a CD
Ladder requires buying CDs (certificates of deposits) from banks in certain increments so that you can earn a higher return on your money.
CDs are offered by banks and since they are a low risk investment they also yield a low return.
Large outlays of cash are required for this over time.
5. Annuities: Annuities are an insurance product that you pay for but can then provide you passive income for life in the form of monthly payments.
Significant outlays are required over time to make this type of investment worthwhile.
6. Sell an eBook online: Self Publishing is mainstream today.
When you purchase an eBook off of Amazon, there’s a pretty good chance you’re buying a self-published book.
Self-publishing is also ridiculously easy. To self-publish a book, you’ll first need to write and edit it, create a cover and then upload to a program such as Amazon’s Kindle Direct Publishing.
Don’t expect instant success though.
There will need to be a lot of upfront marketing before you can turn this into a passive income stream.
Not everyone, however, who sells an eBook is successful.
7. Network marketing: Network marketing, or multi-level marketing, seems to be on the rise.
Companies such as Young Living Oils, Avon, Pampered Chef, and AdvoCare are all multi-level marketing companies.
You can earn passive income through network marketing by building a team underneath you (often referred to as a down line.)
This type of program requires a lot of time and interaction with other people to make it viable and many people gradually drop out of the program as they do not have the patience and dedication to make it work.
8. Rent your property on Airbnb.
If you have a house, apartment, spare room or even a backyard you can list your property on Airbnb and start earning money when you get your place booked.
9. Vending machines: Vending machines are another great low maintenance small business idea.
It requires investment in vending machines and inventory.
Dealing in cash does carry some risk.
10. Affiliate marketing
Affiliate marketing is the practice of partnering with a company (becoming their affiliate) to receive a commission on a product.
This method of generating income works the best for those with blogs and websites.
Even then, it takes a long time to build up before it becomes passive.
I have left affiliate marketing for last because most affiliate programs do actually take a long time to build up before they can become passive but there are exceptions.
One of the best passive income opportunities:
Click here to learn more about our top recommended fully automated system which is free to join and there are no monthly fees.
Furthermore, all sales campaigns and sales follow up are done for you.
Therefore, you do not have to be an internet marketing professional to succeed at this program. You can have a normal job and have this business growing at the side until it is mature enough to replace your income and it just keeps on growing.
This is one of the best affiliate marketing programs available in the world today.