Getting an education, starting a family, owning a home, and maintaining steady employment are pillars of the American dream. However, for some, the income generated working a nine to five simply isn’t enough and this has caused many individuals to look elsewhere for opportunities to earn more income.
What is Passive Income?
There are three main types of income: active, passive, and portfolio income. Passive income is earnings derived from an enterprise in which an individual is not actively involved. Passive income can be normally associated with the following types of income:
- Stock Gains
- Interest collection
- Retirement pay
- Lottery winnings
- Online Work
- Intellectual Property
- Capital gains
The following passive income strategies require action to get started but can continually bring in money with minimal maintenance:
Start An Online T-Shirt Business
Selling custom products online by starting a t-shirt business from home could be an easy way to generate some passive income. Print-on-demand platforms have made it easy for people to make their own t-shirt designs, sell them without maintaining inventory, and start a passive online business that easily integrates with other e-commerce platforms.
All you need is an idea, some free time, and a laptop or mobile device to start your online T-Shirt business and this side hustle can provide some extra income. Print-on-demand sites can handle all of the printing, packing, and shipping and sign up is free. Here is an expert guide to get started with your t-shirt business that you could start in minutes.
According to the Pew Research Group, 52% of households have some level of investment in the markets. Even one-time investors can continually generate passive income without monitoring or adjusting their holdings. Investing requires capital to get started but is one of the simplest ways to make passive income, and that income can be reinvested or pocketed.
Some investors buy a rental property that they lease to a tenant that pays them an amount each month to use the property, however, this requires some activity because the investor is in charge of maintaining the property. For those who don’t want to manage properties, real estate investment trusts allow people to invest in rental properties managed by the trust and these properties pay dividends.
Run or Purchase A Blog
Blogs can produce passive income through affiliate links, courses, sponsored posts, products, book deals, google AdSense, and more. Building your own blog will require work upfront but can be abstained, with very little financial capital, using organic marketing like search engine optimization, social media, and building your brand’s email list. If building a blog seems like too much work, and you have the disposable income, then purchasing a blog that is already operational is an option.
Create an Online Course
Online learning is continuously growing and using your skills to create an online course could be a source of passive income. Courses can be created about anything and you control the price point, material, and details of the course. Websites like Udemy, Skillshare, and Thinkific can help you sell your courses online for cheap. It may take more work in the beginning but once the courses are uploaded, they become very passive.
Become a Social Media Influencer
Building a social media following requires time and energy but some individuals excel at it. Depending on the niche of your page, businesses could reach out to you, and in exchange for a post on your feed, pay you. Your social media following could help businesses connect with potential customers and offer you a hefty payday.