Passive Income Sources that Require an Initial Time Investment
Most of these sources will involve setting up a personal website or blog; but that is not actually an expensive proposition. You may utilize the services of Bluehost for this purpose. They will provide a free domain name and will host your blog at an initial price of only $3.95 monthly, a really cheap outlay for the opportunity to create a passive income source.
Publish and Sell an eBook Online – Self Publishing has become a profitable source of income for many individuals. More often now, any eBook you buy from Amazon could be a self-published work. This is because self-publishing has become significantly easy; you should try it to find out how easy it really is. It simply involves writing and editing a book yourself, designing a nice cover for it and then submitting to a platform, such as Amazon’s Kindle Direct Publishing. Although there is no guaranteed success, that should not stop anyone from accomplishing one of the three proverbial things any person must do in life before passing on, besides having a child and planting a tree. And before that time does come, utilizing this passive income source requires plenty of marketing upfront before you can benefit from your investment.
Offer an Online Course on Udemy – Udemy provides an online platform for people to take video courses on various subjects. You can be a producer instead of being a consumer on Udemy by offering your self-made video course and selling it online. This passive income source is a great option for those who have the skills or talents in any particular artistic or academic field. Moreover, it multiplies your efforts several times over, compared to the conventional one-on-one or classroom tutoring mode – indeed a potentially lucrative passive income source!
Selling Your Photographs – Did you know that many websites, blogs and even magazines acquire their photos from websites featuring stock photos? So, if you are into photography, you can turn in your favorite shots to stock-photo sites and earn a fee each time someone buys one of your photos.
License Your Music – In the same way, you can have your music licensed to bring you a stream of income through royalties paid by those who use your music. The usual venue for licensing music is through YouTube Videos, through ads and other means.
Design an App – If you are a smartphone or tablet user, you are probably very familiar with apps downloaded into them. Perhaps, you yourself have a great idea for an app. In that case, get the help of a programmer to make that app for you. That should provide you some residual revenue.
Affiliate Marketing – Affiliate marketing involves collaborating with a firm (becoming an affiliate) to receive a fee or commission on a product. This approach of creating income works well if you have a blog or a website. It might take a long period before you can build up the idea in order to gain passive income from it. Check out affiliate marketing programs available online to find out which suits your needs best.
Network Marketing – Network marketing, also referred to as multi-level marketing, has been drawing people for many decades now and providing many of them with above-average income. You have probably heard of such firms as Avon, Young Living Oils, Pampered Chef and AdvoCare -- all engaged in multi-level marketing. This can be a great source of passive income. You can build a team to work under your banner (what is called your down-line people) who will provide you commissions from the sales they make, even if you do not make any sales at all or just make a token sales output based on your required quota as one team.
Design and Produce T-Shirts – Cafe Press provides online users to make their own T-shirt designs or other items requiring some designing work. You can earn royalties from the designs you make, especially the ones that become hits.
Sell Digital Files on Etsy – You can also sell your own artwork through Etsy which provides digital files of artwork people can print out for decorating purposes. Other popular digital files on Etsy are available for download. Who knows? Your collection of graphic designs might provide you a steady stream of passive income if you join the site.
Ideas for Semi-Passive Small Business Ventures
Vending Machines – Vending machines can be a fantastic low-maintenance small-enterprise venture. Any individual can maintain several vending machines in a string of nearby towns. Every two weeks, you can collect and refill them, bringing revenue for your future retirement life.
Car Wash – There are still many places that do not have car washes. It is a good semi-passive income source. A weekly regular maintenance job can provide a very comfortable schedule for a business idea that you can either personally manage or hire out to someone else.
Storage Rentals – You can also rent out to customers storage space for a monthly income. The main job involved is when opening any of the storage units for new customers.
Laundry Services – This is a rather debatable option for a semi-passive income source since it can actually involve a lot of continuing maintenance work. You can decide whether it is worth all the expected work.
Easy Passive Income Sources
Finally, here are a couple of easy passive income sources which demand no cash and no initial work. Although the returns are very minimal, nothing beats getting easy passive earnings.
Cashback Rewards Cards – Using a credit card to pay bills can provide you cash-back rewards. Allowing your rewards to accumulate for a certain period and later putting the easy money you saved into a passive income venture will do the trick for you. (Check if the card you use does not charge a yearly fee; or else you end up with zero revenue in the end.)
Cashback Sites – Similar to the previous one, you can choose to use a cashback site when shopping online. Why should you not get a hold of that free money for so little or for no work at all? You may decide between eBates and TopCashBack, the two most popular sites available.
Get Started Now
The best strategy for a beginner is to have only one passive income source instead of having 4 or 5 right away. This allows you to learn slowly the ropes first and to focus on building a passive income venture. Once you have mastered one, add another until you are fully content with the income stream you have built up.
At the start, a significant amount of money and time will be involved; however, in time you will realize that earning passive income is a cinch! Choose the most suitable idea, plan your venture and commit yourself to that income source until you start benefitting from it.
Do you want to earn some passive income? We give you twenty practical ideas to help you enhance your financial situation. You may need to invest some money or time to pursue your goals. Before you do choose which one will suit your needs and situation, take time to appreciate the meaning and value of passive income.
Proceeds from passive income streams demand an initial investment and plenty of careful attention at the start. But once you put in the time and the diligent work, the payoff starts to grow and can sustain themselves, providing regular monetary rewards with much-reduced effort in managing the investment.
From the actual personal experience of many people, augmenting to your portfolio the income from passive income sources can serve to enhance your earnings and fast-track your financial objectives in remarkable ways.
And so, if you want to begin cashing in on passive income ideas, arm yourself with these fundamental principles:
What Passive Income Requires
Firstly, let us do away with some misconceptions about passive income. The word “passive” does not mean you merely wait, doing nothing for the income to come. Every passive income source demands at least one of these two requirements:
1) An initial monetary investment, or
2) An initial time investment
Without at least one of these two, you cannot hope to acquire residual income. There are numerous passive income ideas you can apply no matter what your area of interest or involvement may be.
Passive Income Sources that Require an Initial Monetary Investment
Dividend Stocks – These are proven and reliable sources of passive income. Nevertheless, you need to do a lot of study to determine which stocks are worth investing a substantial amount of money into in order to obtain sizeable dividend returns. Investing consistently into dividend stocks can help you accumulate a significantly large residual income in the long-term.
Investing into the following investment ventures requires opening an account at the most reputable online brokerage in order to reap the rewards you expect:
Peer-to-Peer Lending – P2P lending involves providing loan money to borrowers who normally do not qualify for conventional loans. You, as the lender, have the power to select the borrowers and can also spread your financial exposure to minimize your risk. Two of the most common peer-to-peer lending platforms are Prosper and Lending Club.
Properties for Lease – A great way of gaining monthly income is through leasing out property. To maximize your income potential, outsource the handling of the properties to a competent management firm.
Crowd-funding has become a common way of starting out in rental properties. You can begin investing in real estate for as low as $5,000.
The advantage of utilizing a platform over a DIY approach is that you spend less time and effort in managing the investment.
Money Market Funds or CD Ladders – Creating a CD Ladder demands acquiring CDs (certificates of deposits) from banks in particular increments in order to earn bigger revenue on your money. Banks offer CDs as a low-risk investment but with also a low yield, providing an alternative investment choice for people who avoid high risk levels.
You may consider these popular market funds to gain high yield returns:
Annuities – As a form of insurance product, annuities can offer monthly passive income payments for life. However, before buying an annuity, consult a dependable financial counselor regarding the terms involved, since annuities may vary and do not always provide good returns.
It may seem rather inappropriate to receive personal finance advice from wealthy people, considering they deal with tons of money whereas the ordinary person can hardly scratch a decent living. What use can you get from such advice as “Invest in gold rather than in silver” and others of that sort? Nevertheless, they can offer some sound advice for any kind of financial situation. After all, they have an uncommonly wide exposure to many money matters. Get these free tips from some friendly billionaires:
Begin as soon as you can
For a few years, a Mexican businessman named Carlos Slim Helú held the distinction of being the world’s richest person, until Bill Gates reclaimed the title recently. Slim offers personal finance tips shared by most finance experts; and beginning early is one of them. This may not apply to people of more advanced age as they need to begin now to “redeem the time”, so to speak. For the earlier you start getting serious about handling, saving and investing your money, the greater your chances of avoiding making mistakes that will impact on your future financial security. Slim, for instance, bought shares in a Mexican bank when he was only 12 and worked for his earning father’s business for 200 pesos weekly before he turned 20.
Discover Your Passion
It costs nothing to start believing in your own abilities and potentials. Oprah Winfrey, another billionaire we all know, said that we are what we believe and that what we are now is a product of everything we have believed. You can change any situation you are in now; and the first step is to believe in yourself.
Once a person believes in his or her own self-worth, discovering one’s passion – whether it is music, sports or photography – will only require a healthy dose of diligence and perseverance to achieve success.
Christopher Paul Gardner, although a "mere" millionaire, was a homeless single-father once. Asked what his secret was, Gardner said, "Find something you are so passionate about, you can hardly go to sleep to do it again." If your passion is to make space-saving furniture, educate yourself on that subject through online articles or books now and become as good in it as you can be.
No Need to Become Sophisticated
Do you know how Warren Buffett made his billions? He accumulated his investment fortune by focusing on the fundamentals, that is, by choosing firms with strong yearly cash flows and those firms not in the danger of losing technical relevance in the fast-changing world of technology. He also spent his early years in investing on insurance firms. For many, it is not a fancy way to earn; but it worked out well for him. No matter how small or big your money is, the right way to invest is by sticking with the fundamentals.
Live a Simple Life
Just like the previous tip, Warren Buffet lived this motto – he still lives in a house he bought in 1957 for $31,500. Likewise, Carlos Slim also lives in the same house for over 40 years. Many people, however, continually seek things that bring on financial disaster instead of those things that bring on financial security.
Walking and Riding on Public Transport is Cool
Three billionaires we do not often hear of -- John Caudwell, David Cheriton, and Chuck Feeney -- either walk, ride bikes or take public transport to move about. Nothing beats these three means as far as saving money is concerned, aside from taking care of one’s health and the environment. There is no shame in riding public transport – only trolls think negatively of good things.
A Car is only a Tool, not a Luxury Item
Walmart owner Jim Walton uses a 15-year-old pickup truck while Ingvar Kamprad of Ikea uses a 10-year-old Volvo. Cars do not establish any real social or financial status. If you are into restoring or buying fancy or classic car models, go ahead as long as you have the money to spare or to invest. In general, however, even wealthy people only need to get from Point A to Point B safely and comfortably. A car is nothing more than a tool as useful for doing a task as a computer or a hammer. Diamond-studded Benzes or gold-plated Porsches are toys only Saudi princes can afford.
Some of us ordinary mortals get wide-eyed listening to billionaires dispense financial advice; others cannot take it at all, especially if they are going through financial straits. Yet many rich people began with as much money as the man behind the theater ticketing booth, or even less. These tips can serve you well in any financial situation, as long as you have the desire to improve your lot. Buy at the lowest possible price, earn as much as you can in any decent way and do not splurge your money on needless things. Pursue your passion and nurture it, no matter how much you earn from your job. The important thing is that you find fulfillment daily in the things you do.
Money itself is merely a tool for achieving genuine success and happiness. Being a billionaire does not guarantee happiness – or even success -- in life. Some billionaires, in fact, can learn a thing or two about true happiness from poor people.
Are you doing a financial spring-cleaning this year? Scan your papers to keep an electronic bank of valuable documents. There are certain steps to observe according to the kind of expense, asset or transaction; but, in general, make sure that your digital files of your records are as legible and accurate as your hard copies and also as easily accessible when you need them.
So, what documents do you need to save or discard? Here is a rundown:
Taxes – You may need to keep your tax documents while the statute of limitations applies. These will include the following: W-2 and 1099 forms, invoices, receipts, cancelled checks, mileage logs, proofs of payment and other records pertaining to deductions, income or credits claimed on your return.
Student loans – Never ever discard your student-loan master promissory note because it the legal support for your loans. Keep it until the time you have repaid the debt.
Credit cards – It is wise to keep credit card statements for as long as 7 years.
In case you are already paperless, determine how long to obtain your statements online. This is easier than eventually having to request them via snail mail in the future.
Real estate - Your FICO score measures your qualification for a mortgage and the interest rate you need to pay. You have to reach a score of about 620 to be considered by any lender in order to qualify. If you are not qualified for an affordable rate, you may have to wait before buying a home for the time when your credit improves – it will take more than 7 years to have negative activity on your report.
Insurance – Many do not easily warm up to the need for life insurance for obvious reasons, one of which is the uncomfortable feeling of knowing how temporary life really is. However, accepting the inevitability of our own mortality should convince us of the importance of keeping our original documents, such as assignment of beneficiaries, always available on hand.
Banks/brokers – Regarding documents for brokerage accounts and banks, you probably already hold an edge: majority of financial institutions provide a completely digital alternative, facilitating ease of storage.
Bitcoin – If you have bitcoin or some kind of cryptocurrency, download the most recent records without discarding any. Incidentally, IRS has started cracking down on cryptocurrency holders; and there is still no specific rule or stand regarding how to treat these tokens. Moreover, cryptocurrency transaction logs are most probably likely electronic-based. Knowing the uncertainty, there is no sense in discarding any record of such transactions?
Employee benefits – Employees accumulate so much paperwork from company-sponsored benefits, such as a 401(k), HSK and medical insurance policies. Keep these papers for a minimum of 3 years. As for EoB junk, you can discard them; but papers with tax or legal implications should be safely stored.
Retirement –The most important document is the beneficiary form, which is what you fill out when opening a retirement account and assigns your account to a beneficiary upon your death. It is not your will or living trust. Keep your forms are updated and inform your executor and beneficiaries where you store your papers.
Devin Consultants, a financial management company with hundreds of satisfied clients who trust the counsel and services we provide through our financial experts. Utilizing the latest technology, we can help you enjoy full online access to our financial management services.