Passive income is taking the modern financial industry like a storm.
For a number of years now, entrepreneurs worldwide have been pushing passive income as the best way to unlock financial freedom and start earning big bucks for little long-term work.
But what is passive income?
Passive income, essentially, is money that is earned without working.
Don’t get me wrong here – this isn’t a get-rich-quick scheme.
Building up streams of passive revenue doesn’t come easy and will require a lot of time and effort to begin with, however in the long run sources of passive income will bring in money without you having to put in any more hours.
Many of us rely on active income to meet our expenses.
Active income is money earned by putting in actual hours and being paid for each one.
A day job such as accounting/waiting requires workers to actually work daily to be paid.
An accountant won’t, of course, be paid their monthly salary if they don’t attend work.
Passive income, however, requires significant effort to start but once established will generate money for years to come without you having to show up anywhere or clock-in to be paid by the hour.
This article will cover some of the top ways of earning passive income through investments to keep your profits ticking over for as long as you wish.
Saving
The absolute crux to passive income is saving.
Without saving , you simply won’t have the funds to build up streams of revenue and you won’t have any cash to make investments to earn you money.
By saving you create the foundations on which your financial business can grow.
Even if you choose not to do anything with your money and put it all into an interest-building savings account you’ll still be increasing your salary over time by doing no work.
Alternatively, you could put all of your earnings into investments.
This way, your money won’t simply be sat gathering dust and will constantly being put into stock which will pay you in dividends (these are regular payments that companies will pay you just for owning a share in their business).
See Also: Top Money Saving Tips for a Small Business
Real Estate
With your savings you can begin to invest also in real estate.
Real estate simply means physical properties – houses, apartments, warehouses, whatever you choose.
From renovating to interior design, you can pump up the value of a property – and then flip it.
Useful Resource: West Hartford, Connecticut Interior Designer
By purchasing and renovating properties you can then rent them out and earn income for as long as you hold the property.
Say you manage to save up £60,000 and buy yourself an apartment.
This apartment can then be improved, made liveable and rented out to clients for a decent profit.
To begin with, real estate can be very time consuming and require a lot of hours to run smoothly.
However, further down the line once you begin earning more money you’ll be able to simply pay people to do these jobs for you and allow your real estate business to flow on its own without you having to put any more work.
As your real estate empire grows you’ll be able to invest in larger properties and multiply your income, eventually earning enough money to quit your job altogether and live freely.
If you want to venture in real estate crowfunding, you can do a research on how it is doing in your area. It has been a global hit and has offered a lot of opportunities for success.
Stock Dividends
Owning dividend stocks is an incredibly effective way to earn as essentially you’re being paid simply to own shares in a company.
You’re paying a fee to paid fees for as long as you wish.
While a company earns profits, a percentage of these are distributed out to all shareholders as a reward for investing in their company.
A company may require investments as a way to generate money and get its feet off the ground.
Once the company evolves it pays these investors cuts of its earnings.
Dividend yields may, however, change yearly and will not always be the same across all companies.
It’s therefore wise to choose to invest in companies that have kept their dividends fairly equal over a number of years as a way to ensure that these dividends will not fall when you make an investment.
Creating and Selling Products
Stick with me here.
You don’t need to be a master of arts and crafts to sell your own products online.
When we speak of creating products to sell, these can range anywhere from digital layouts for wedding invitations to sculpted glass figures.
Products you create can be sold through a range of distributors such as eBay, Etsy and Amazon.
Creating products to sell is easier now than it ever has been.
Etsy now offer the option to sell digital products through their store, as well as any number of physical products.
Depending on your skill level, you can choose to sell virtually any product you wish and make a profit for it.
Once your product listing is up, you can create automated systems that have your product stored, packaged and shipped for a fairly low fee.
This way you’ll be able to earn money for simply overseeing a fully automated process, giving you the freedom to travel and spend your time however you wish whilst still earning a tasty profit.
And there you have it – a fully comprehensive list of my favourite ways to begin earning online through investing your time or money into different areas.
It’s always best to rely on multiple streams of revenue rather than just one and so I would highly recommend making use of many of these methods rather than just one to maximise your profits and unlock your financial freedom.
