One definition of passive income is money which has been earned despite minimal activity, through a variety of ventures which require little daily effort or upkeep on the individual’s part. Passive income is something everyone with a busy schedule such as working parents should look into, as it’s great way to make a little extra money on the side without having to dedicate too much of your time to it.
Passive income is arguably achieved by business owners with ventures which earn enough to pay for staff to carry out key roles, leaving them free of responsibility while still receiving company profits. However, this requires significant initial input which not everyone can commit to, so take a look at these ideas for some more achievable ventures which could provide you with a passive income.
Investing is a great way to generate a background income. The stock market is a good place to start, especially diversified low-cost index funds, as they average out your gains and losses because you’re investing in a group of sharesall at once. Keep an eye out for promising up and coming companies with an obvious future, such as those with a focus on renewable energy sources or those with a history of steady financial growth.
Real estate is another form of investment and is one of the most reliable out there. The housing market grows with inflation so unless you make obvious mistakes like paying far more than a property is worth, or spending loads of money on somewhere in an area that puts a ceiling on its value, you can’t really go wrong. The best way to invest in property is to buy at auction and always focus on location, as renovating a property in a good area is the best way to make a good profit.
Renting Out A Room
If you’re a sociable person and you have a spare room in your home, you could rent it out for an income without having to do anything at all. You can be careful when it comes to choosing a lodger, so that you can enjoy the experience and feel safe, and you never know you might make a new friend. Alternatively, if you have a big enough room you could convert it by adding an en-suite and mini kitchenette so that they live independently, and you could charge more for this style of accommodation too.
There are all kinds of other things you could sell too, for example you could sell old belongings you no longer need on eBay, or you could sell new products on Amazon with the help of these amazon FBA product ideas. It’s important to stay up to date with what sells and keep a small inventory of stock so that you can adjust to meet new demands.
Blogging is a brilliant new source of income for people who love to write, or who have skills and knowledge that is valuable. You can spend an hour per night building up content on your blog, based on whatever topics you find most interesting or that you believe will help people. Once you have a wealth of information you can start trying to build up your subscribers and mailing list, this way, you’re likely to be noticed as a potential platform for sellers. If your blog becomes popular you are likely to be approached by companies wanting to integrate affiliate links into your work and pay you for it.
Attaining sources of passive income through investment, renting out rooms, and blogging for example, can give you the financial security you desire, the capital for a new business venture, or can provide additional income for you to spend guilt-free without having to commit much time and effort to it.