There are a lot of articles about passive income that give non-passive ideas.
Passive income means you get income whether you work or not.
That means things like blogging and freelance writing do not, on their own, produce passive income.
Below are some ideas to actually get passive income, not just a stay-at-home job.
1. Real Estate
Real estate if one of the first things people go to when they think of passive income.
You can invest in rental properties, and receive the income as your tenants pay.
There are also Real Estate Investments Trusts (REITs) if you don’t want to spend the money, or don’t have the money to get an investment loan. You can always get a home loan and home insurance from iSelect, for your investment needs.
Real estate provides a passive income stream through rental income, or owner financing options.
2. Investing Dividends
Getting a dividend from a profitable company is a great way to earn passive income.
Dividend is the profit that company makes which is being shared with the shareholders.
Dividend can come in the form of a money payment or stock.
Cash dividends are usually distributed through banks, while stock dividends are distributed in forms of stocks and shares. Dividends are attractive because they give opportunities for big payout if the company is doing well on the market and earns large profits.
You also have the option to re-invest your dividends to increase that nest egg, but if you want passive income, you can be paid in increments.
3. Investing Interest
Another way for earning passive income is through interest.
You get interest when you choose to deposit your money in the bank. There are different interest rates depending on how much money you choose to deposit and the period of time for which you are depositing them.
The interest rate is basically the percentage that is being charged for the money you are giving to the bank. Different banks offer different interest rates, so check everything in advance before you choose to deposit your money.
Usually the higher the amount you put in the bank, the higher the interest rate will be. Choose the right bank for depositing your money and you will earn good interest over time.
Owning your own business is another way to get passive income.
As long as you own a business, as opposed to “owning a job,” meaning that you oversee the business, but don’t actively work there.
This takes a serious investment on your part, or good sales and marketing skills to sell your investors on the business.
Many people want to invent things. People often say “I thought of that already” when they see inventions come out, but you have to act and do the work yourself.
If you have an idea, find the right people to make it work, and create it. If you can create it yourself, even better!
There are plenty of inventions made every year, and that means passive income upon success.
Similar to inventions, you can always create a product.
Anything from a book to a course to a video series and more.
You create the product, and once it takes off, you receive the profit, or a portion of the profit.
This is easier said than done, but creating a product means putting in a lot of work now, so you can reap the benefits later on.
Any one of these requires work. You either have to work to get the money to get started, or you have to work to create something first.
It’s all worth it once you’re getting the passive income later.
Do the work now, so you can sit back, relax and get the income.