Looking for passive income? Here are great ideas on how to create passive income with no money and with money both online and off-online. If you are seriously in need of passive income in 2018, we have got you covered.
People with entrepreneurial mindset scout a lot for the ways to earn their own income without having to work for anyone to be able to make use of their time the way they wish. Also, to be able to make a reasonable amount of money requires you putting in enormous amount of time, simply put, you cannot become a billionaire while you are under someone else’s shadow.The creation of passive income or residual income is just the best solution to solve their quest. Entrepreneurs can always create or build something for themselves with the generating of residual income as time goes on in view. Therefore, we can say that Passive Income is an idea to be worshipped and sought for by these entrepreneurs.
In this modern generation, it seems like a tough show to start up anything from the scratch and on your own, but the struggle will be worth it. Starting up a business with the aim of passive income in view needs a lot of attention, time, endurance and dedication. It may seem almost futile in the near beginning, but with perseverance, you will enjoy the benefits massively in the nearest future.
I will always consider time to be of utmost importance than money, because money will always come and go, but time spent can never be regained. The more we get older in life, the more we will seek to have personal and precious moments and they require personal time as well.
Requesting for a raise or more hard work is what we resolve to whenever you are hooked up with a fund demanding issue. Well, instead of resolving to that as your only solution, you can start early to make investments that can cover you for a time like this.
You can’t just wake up and turn things in a twinkle of an eye to make a fortune, unless you of course win a lottery. Apart from that, wanting to be able to receive a residual income in the nearest future will require that you make some momentarily sacrifices. You shouldn’t expect these sacrifices to yield income at that moment but will stand in as an investment you will reap from at the long run. Take a farmer for an example, he plants seeds and tends his seeds with the view they yield bountifully during the harvest time. In other words, he doesn’t hope to have his harvest sooner than the harvest time.
Again, for the farmer to be able to reap bountifully during the harvest time, he must have been able to identify seeds meant for his location and season. Only then can he hope to reap bountifully. In the same way, investing in something with the passive income in view will require you investing in things you are skilled and passionate about. Then just like that farmer, you expect a good turn out on your investment.
On the long run, passive income can save you a huge embarrassment, if you find yourself in debt. It is suitable for some people like college students who may not have an extra time to take up any job.
In this article, we will be providing suggestive ideas that can help you invest in things that can yield residual income.
Ideas That Can Yield Passive Income
Here are some ideas which are likely to be great sources of residual income if taken into consideration. Go through them and probably engage yourself in the one that suits you best.
There will be two categories to this income earning, the non-passive category and the passive category. The active income will be fall into the non-passive category while the portfolio and passive income will fall into the passive category. On another side, the IRS does treat all these types of income earning in different ways.
- Lending Club Investment
The simplicity of passive income can be seen in the U.S bank certificate of deposits or in the U.S Treasury securities. This appears to be among the safest ways of making investments and earning interest. The only disadvantage of this type of investment is that the percentage return interest is very low with interest rate that can be as low as 1%. One can never depend on an income that can be as insignificant as that and as such you should seek to invest in other forms of passive income.
This is where the Lending club investment comes in. Lending club involves a group of people coming together to provide financial assistance to others inform of loan. This is often an online peer-to-peer lending platform where the investors seek to receive higher interest rates in return for their financial assistance.
With this Lending Club, you can receive interests on a higher rate which can be as high as 10% yearly. This looks more lucrative than the usual bank loan because of the higher interest rate. But be careful with it because, just like every other thing, it does have is demerits. As sweet as this sound, you should also watch out for the bad times where you stand to lose even your basic principal. This is the more reason why you should pay close attention to ways you can reduce the risk of being at a loss.
From experience, instead of putting all your egg in one basket, it is advised that you purchase other different loans to keep your chances open. For example, when investing with up to $3,000 principal, it is advised that you buy into 100 different loans with about $30 each. Doing this will help you to keep your chances open should any of them go bad.
Even with the risks, Lending Club will offer you better chances of earning more than investing in banks. No matter the amount of capital you wish to invest, be it 20k or 200k, lending club is here for you to guide you and help you invest wisely.
- Fundrise Real Estate Investment
As good as real estate investment sound, it does require heavy capital to start up.
Most times, people are not just interested to handle the responsibilities that come with acquiring and owning a house. Not to worry too much fundrise also known as REIT is here for you. They provide you with opportunity to invest in real estate with as low as $500. All you have to do is to bring the capital you wish to invest and have them use it in improving real estate projects, that way, once the profits fall in, you also earn with them
In the past, fundrise have recorded high interest profits as high as 11.44% in around the year 2017. So you can see that they have performed pretty well and worth a trial. These interest rates are far higher and better than you would ever receive in any bank interest.
Another great thing with investing with fundrise is that you can easily make your choice on their plan that best describes your investment strategy. Below are their investment strategies that you can make your choice from.
- Supplemental Income – with this plan, you can invest with the purpose of earning in little or no time as possible.
- Balanced Investing –This involves making investments in projects that appreciates as time goes on. Therefore, you should not be expecting any returns soon.
- Long-term Growth – from the name, you can tell that this plan does not plan to give you any tangible return, returns might be slow, but increases the more with time.
An added feature to this is that you get to view the real estate projects available and get to make your choice.
- Savings account with a high rate
As boring as savings account may sound, it is among the safest way to make invest your money.
It is true that most savings account come with a very low interest of 0.15%, but you will have to save more money which will be more than $250,000 (the FDIC-insured amount) before any meaningful interest can be allocated to you.
In the late 90s, you can see online banks that offer higher interest rates when compared to the ordinary banks. Recently, online banks can offer better interest rates which can be up to 1.5% interest rate which is by far, better than what you’d get with ordinary banks. You don’t expect to be rich but it’s safer to use it.
Some of the online banks with high interest savings account are
- Barclay – this offer with CDs and savings only in United States.
- Synchrony – this offer has its own account limit as well.
- Ally – this offers you a checking account as well
You can use these options to save up some cash while searching for an investment to make.
- Robo-advisor Investment –
This is an act of managing your business with the help of the computer algorithm. Robo-advisor platforms like Betterment gives you the opportunity to show your interest in taking market risk and you can relax while the computer does the thinking for you. With computer algorithm, you can be assured that you portfolio will always be balanced and the good thing about it is that it consumes lesser fee than a human account manager. The two types of robo-advisor games available include;
Betterment provides you with lower tax rate on your investments while they also provide you with one of the best financial guidance using their algorithms. Betterment will always have my recommendation since they have been performing so well.
Wealthfront and Betterment charge equal fees and can provide you with actual human being assistance if you wish so. Nevertheless, their fee on your first $10,000 investment still stands.
On a personal note, I can refer to betterment investment and services as being almost excellent and it seems they always have it together at all time. They remain the best choice to invest with if one wishes to make investments on a large scale.
Unlike other robo-advisors, bloom provides specific assistance to employers’ sponsored accounts such as 401k, 403b, 401a, and 457 accounts. You may not need to go through investments yourself because they do access them and come out with the best options for you. The good thing about them is that your account is always balanced automatically and they are less expensive as well. They charge as low as $10 monthly even if your 401k accounts keeps increasing.
- Index Funds
Investment in the stock market can be a lot easier through Index Fund. When the index fund is dependent on the S&P 500 Index, you making investments into it will be the same as investing into the general market. With this, you can now take your mind off some details such as;
- Making decisions over some particular investments
- Getting your portfolio balanced
- Worrying over when to purchase or make sales of individual companies.
These things are the features that will be taken care of by the fund which they depend their portfolio structure of the index.
When buying index funds, platforms like E*Trade can be recommended and take care of all that is involved in investing in different funds. They stand out among the platforms because they make moving your money into other funds if you want easier because you are already registered with them. They also help make your account ownership less costly and lessen the cost on each trade. Having trust issues about E*Trade, you can always visit the Trade King Review and see how special they have become when it comes to account investment.
You can easily decide on which of the fund you’d want depending on the index of your choice through any broker. Index funds established for the different market sector include;
- Precious Metals
- Markets that are upcoming
Just make your choice on the one you want, then make your investments and that’d be all. You will have your stock portfolio transform by itself.
Then starting up an account with the Roth IRA can be necessary when you what to plan for your retirement. This helps you prevent any future tax-incurred expenses which may arise and you end up withdrawing everything. Saving retirement money can always be possible andnwith this method.
- Earn money while performing Tasks
This provides you with the opportunity to earn some money while you perform your normal daily tasks. There are popular apps that allow you to get paid doing these things. Apps like swagbucks, Inboxollars, Uber and so on. While swagbucks and InboxDollars reward you for performing activities like surfing the web using their search engine, playing games, shopping online among many others, Uber lets you get rewarded by picking up others and driving them while using their services.
- Cash-Backs on Credit Cards
It is very possible to get back some percentage of your money back after making purchases with your credit card. There are some platforms which allow you to do just that (earning between 1-5% cash back of your purchases with card) without much stress. Platforms such as Credit for Convenience allow you to earn a large sum of money just for registering with them. There are many other platforms which offer same opportunities to earn reward for purchases made such as Chase Sapphire Preferred®card where you are given up to 50,000 points which is approximately $500 when you make purchases up to $4000 with your card in 90 days. I know right? This is so darn easy.
Again, they also offer additional 5000 points for adding your spouse and making him/her an approved user on top the bonus for spending $4000. The easiest way to earn this is by making your normal daily purchases such as insurance, groceries, gas and others using your card.
There are numerous other sites which offer the same services with about 1-5% cash services, all depends when you get the one that is right for you. You can also use these points to redeem travel tickets when you save them especially if you are a fan of travelling.
- Earn by Taking By taking Pictures
There are platforms which allow you earn money for the pictures you take. Platforms like Shutterstock and iStockphoto offers you either some percentage of your sold picture or a particular amount of money. This could serve as a great source of passive income. Just keep snapping and uploading these pictures to their site. This makes one picture to get sold multiple times, easiest way to earn more is by creating a picture portfolio and have them uploaded to multiple sites as possible. Then allow these sites do the work for you and you earn your commission.
- Publish an e-book
This is another great opportunity to a steady stream of residual income. Surely, you would require a lot of hard work to pull it through but it can keep generating income as the years go by.You may decide to have your personal website where advertise and sell your own e-book, or you can become affiliate with e-book sites like amazon which provides content with your e-book, sells for you and give you some percentage interest of the sale. Most e-book authors admitted that their effort and time that was spent in writing and publishing these books is worth it because of the residual income it produces for them.
- Using internet to market your products
Internet provides you with numerous opportunities to buy and sell different products and therefore you can seize the opportunity to sell your own products. You can either sell goods manufactured by you through your website, blog, or a site that is only dedicated to buying/selling of products or you can provide digital services like CDs or software. There are websites such as ClickBank among others which are also dedicated to providing a platform where one can market and sell his/her products. You may decide to become affiliated with them or sell your products directly on their website.
Selling products online can generate just about tangible income for you than that job that you probably think pays more money. So, you may want to consider it as a serious option once you are equal to task.
Steve Chou from MyWifeQuitHerJob.com once narrated to how his wife became a home wife and left her job in the podcast interview. This gave her the opportunity to start up an online business which is now generating income for them in millions.
Also, you may want to also decide to sell other products directly online, although it may not be as passive as it can get as it requires your momentarily attention, but it’s far better than jumping out the door on daily basis.
- Investing in Real Estate
You may count this as a semi-passive income activity because it sometimes require little attention but investing in the real estate can generate real profitable returns when it is invested wisely and on productive projects. If you wish to make it completely a passive means of income, you can hire the services of professional property managers who will handle it for you but this may affect your cash flow as they may charge up to 10% of your income on monthly basis.
The co-host of the well-known BiggerPocket podcast who is also active with investing in real estate, Brandon Turner once gave this quote ““The key to success with rental properties is buying smart. Not every investment property is going to provide a good return or prove to be passive. Understanding how to analyze potential real estate opportunities is incredibly important. As the old adage goes – you make your money when you buy”.
Also, when you obtain loan to purchase real estate properties, the good aspect of it is that you will recover part of your loan on monthly basis with the monthly rent paid by your tenants. You will now see your cash flow take another turn by the rapid increment you’ll have once you offset these loans completely. This can now become a retirement plan for you because the cash flow drastically increases and you wouldn’t be so dependent on paid-off properties
- Making Online Videos
Online videos can also generate income for you when you go about it the right way. You can upload videos on any sphere of life, be it comedy, tutorials, events, music, anything at all to YouTube and link it with Google AdSense. Google AdSense then advertises it automatically and pays you once it gets clicked by viewers.
Try uploading as much video as you can and then, make other videos too that can be used in promoting them using social media platform like Facebook, Instagram, twitter and so on. This will help provide you with more sources of views and thereby generating more income. Video editing is also one skill that will be useful to you although there are apps which can help you with that type of services.
Making professional standard videos can be demanding and needs more effort, but the income it can generate afterwards will be worth it. And again, the cash flow never really stops as long as the viewers keep clicking on it. This becomes a great source of passive income. Take a look at Emily Eddington who now has over a million subscribers and up to 170 million viewers on her YouTube video, this has finally become her full-time work since it generates a reasonable amount of income.
- Purchasing a Blog
It is would be better to purchase blogs that already has a reasonable flow of traffic and cash flow which is set to be abandoned by the owner. These blogs come in thousands annually and can be total neglected by their owners. Purchasing such blogs will create a means of reasonable passive income for you. Bloggers most time do employ the services of affiliate programs or Google AdSense which enables provides them with continual means of income. Purchasing a blog gives you the access to own the income sources itself.
Buying a blog may cost you to purchase it at the rate that is 24times the blogger’s monthly income. For example, if the earns blogger earns about $300 monthly, the blog buyer is likely to purchase it for $7200. Then an investment of $7200 will earn you yearly cash flow of $1800. Sometimes, the blog owners needs to make an urgent sale and therefore may end up selling it less than 24times the monthly income. And most of the blogs can still generate income even after many years of no activity, that is, if they have evergreen contents in them.
This is really a good source of passive income.
Note that, you can as well purchase a blog with the intent of publishing new posts with it and feeling it with more contents. That way, you will end up generating more income with it. But the best way is always to create your personal blog and have all the income to yourself from the onset. You can search for online courses that will help you be a great blogger and earn faster.
- Purchasing with Credit Cards
You can also refer to reducing fixed expenses as ways of generating passive income. When you owe a particular amount of money using credit card, you can decided to be making part payments of about 2% of the money on monthly basis. B y the end of the year, you would’ve paid off about 24% of that capital. That way, you will pay off your debt without even knowing it. Again, using a 0% APR card to pay up can facilitate your payment rate.
- Collect Royalties By Writing a Book
There are many factors associated with e-book writing, which requires keen study and research as to get the minds of your targeted readers. However, when the proposed book is launched and out for sale, it becomes the hub of active business attempt.
It becomes a reality when transactions commence, where the published books can attract royalties from the sales and supply of the book. There’s an incentive to every book sold and the popular the book the more royalties it attracts to you. The true reality is that you can still get the royalties flowing for a long period of time.
A good example of e-book writer and investors that made it big including the likes of Mike Piper from oblivousinvestment.com who wrote and published a book strictly sold on the Amazon platform with a title “Investing Made Simple”. This has generated over millions of dollars for him. Dou you still think this idea is not worth it? I don’t think so.
- Selling Your products through your website
Knowing well that intellectual acquisition pays well, you can as well incubate and hatch your literally skills, which will in return give birth to fascinating articles which could be sold on designated websites. This formula can invariably be used to harness your productivity in related works which you wish to indulge as to increase your financial standard.
When you can be able to maintain the manufacturer-customer relationship by keeping the request and distribution of products at good pace, then you will not get suspected or get labeled as fraud, which a bit difficult to archive but with all diligence, you can attain to that height. At this point, when you become known to maintain your integrity, you will now be able to generate 100% passive income from your website.
- Real Estate Investment Trusts (REITs)
Real Estate trusts investments can enable you obtain passive income without having worries over managing your real estate projects. All you have to do is to provide funds for real estate projects and have professionals manage it for you and using it to develop real estate projects. You will definitely earn higher interests with REITs when compared to some other investment like bank, stock or bond investments. Another great advantage of using REITs is that you may decide to sell off your interest anytime you deem fit and this makes it all better.
Just as earlier discussed, you can make use of platforms like Fundrise to achieve these services with just a $500 investment.
- Make Yourself a silent Business Investor
There are small businesses that require financial assistance to grow further. Locating and investing in this type of businesses at a certain interest rate will provide passive income for you at the long run. You may also decide to occupy significant position into these businesses rather than just giving out financial loans only. This will enable you become a silent partner as you partake in the profits but allowing the business owner to run the daily business operations.
You can as well have observations on ways he runs the business including the business cards and get some tips on how to run your own personal business.
- Make Yourself a referral source
Small-scale businesses often require all forms of referrals to boom and remain in business. You can try these small businesses and be a referral source to as many of them and that can be recommended to others. Businesses such as your local restaurant, coffee shop, dry-cleaners, pet sitter and those like that can require your services as a business advisor. Therefore, make contacts with their owners and avail yourself for this service if they are interested.
You can reach an agreement concerning referral fees with the business owners and then try referring the business to your friends, family members, coworkers and people at large. Also, you can as well take the opportunities of referral bonuses in your office if it comes up on offer and get them new customers. This is simple and requires a little or no effort, just you talking to someone. Other ways you can become referral sources also includes online platforms with referral bonuses. You can decide to earn these bonuses by referring them to friends and others.
- Rent your home Using Airbnb
Airbnb provides accommodation services for guests/travellers or visitors on vacations or business trip round the world. Even though they just came into the business few years ago, their services have become global and have become a reputable company round the globe. They help people rent out a space in their homes or homes when they are on vacation too, to guests seeking accommodation assistance usually at a price lower than the normal hotel fees. Some platforms like cubicle renegade, Paula pant and AffordAnything.com were able to make a fortune through the services of Airbnb to rent out different available locations.
Most times, the income you generate by renting your home is totally dependent on the location of your home. Homes in the city or close to tourist locations will earn you more than homes in other local areas. This is one of the ways to earn income without much effort.
- Create an App
The high rate of smartphone usage in this modern time has provided opportunities for many people to earn significant income through App creation. You might probably be reading this article from your smartphone. Apps have become an essential part of all smartphones. It simplifies people’s life for them. Different types of apps, for example photo editing apps, task tracking app, chatting apps, banking apps and so much more has helped in simplifying activities for many.
You need to find unique and creative idea that can solve people’s problems or find loopholes in other apps and solve them to be able to make your app among others because it is quite competitive. Good apps can keep generating income for you as years goes by although it might need you to updating it from time to time to meet the competition out there. It is simply one of the best passive income ideas one can get.
If you have no knowledge on how it works or how to create an app, then you can resolve to reading other online courses or ebooks/tutorials on how to build one. Example, in the Nathan Barry’s article/e-book, “HowI Made $19,000 on the App Store While Learning to Code.” he was able to teach how one can build and design apps.
If you have the fund, you can also employ the services of an app developer to create your own app with your description. Though it is expensive, the outcome will be worth it, by giving your app a more professional look and generating higher income for you. This is an idea that can be recommended to try
- Creating online courses
Make your passion your income, you can decide to provide courses on that which you are good at. Some people like Ramit Sethi owner of “IWillTeachYoutobeRich.com”was able to make millions through his professional online courses/lessons. You may not be as good as he is but you can still earn a significant amount of money through this.
Websites like Teachable.com can help guide you by providing you with lessons on how to create your personal online courses. This is also a good source of generating passive income.
Different things you can include in your online courses are;
- Video tutorials
- E-books for these tutorials
- Step by step guide on your lessons
- Audios of these tutorial, can be useful to travellers
- Educative and informative interviews with experts
You can provide these works in different formats and prices to make it convenient for many and you can as well have a collection of all your work at high price for people that seek for it.
- Providing online guide
You can provide online guide to things such as map location or way to access a particular thing or activity. You can write just about anything if you don’t have vibes for making online videos. Take Pat Flynn’s website “SecurityGuardTrainingHQ.com” as an example where he provides the security guard requirements of different locations on the map of the United States. Information like this can be very informative to others and you can also use Google AdSense to promote your site, get affiliated to them or even obtain full membership in other to make greater returns on sales.
- Free yourself from your business needs
You will require some time off your business schedule to be able to focus on other sources of income. Therefore, putting all your attention to one business will sap you of your energy and time. This is why relieving yourself from some tasks will be the best solution to this need. There are ways to relieve yourself off duty and yet still maintain your business flow. This can be made possible either by hiring employees or the services of a freelancer. Always go for freelancers who have made reputable results in the pasts.
Some of the tasks you can let go include;
- Web/platform designing
- Book keeping
- Writing and Editing
- Social media or telemarketing
- Task management and so on
This is a great way to generate passive income out of your personal business, by employing others to do the work for you.
- Affiliate sales/marketing
Affiliate marketing is a process whereby you advertise products on other sites such as eBay or Amazon on your websites and have people buy them. This idea is most suitable for website and blog owners. Once people purchase goods on other sites through a link on your website/blog, you will receive some certain percentage on the sales made. This is a lucrative business and thousands of companies rely on these affiliations to make sales in larger quantity. Websites like Clickbank offers affiliate services or you can as well make direct contacts with the product managers or manufactures.
This is a great source of Passive income and can be easy to make.
- Providing advertisement services with your car
You can make some cash by allowing companies advertise their products and services using your car. Before agreeing to this, it is necessary and important that you have basic knowledge if not sound knowledge on what you are advertising.
Platforms like Carvertise can provide information you need about these services.
- Become an Ebate member
Ebates is an online shopping platform that provides you with some certain percentage cash back on already purchased products.
Step by Step guide on how to use Ebates
- First of all, you register and have an account with Ebates
- Activate Ebates on your browser extension using their directions.
- Using their Search engine, you can shop and buy online just like you normally do
That’s all there is to it, you can relax and earn some percentage cash back from you purchases. There percentage rates is usually between 2-22% Cash back although there are special days when they become much higher.
Also, buying expensive and big-ticket items such as smartphones, refrigerators, air conditioners, big electronic devices among others stand a chance of earning you a significant cash back.
Other tips on making passive income include buying og high-dividend stock
This can come very useful when it comes to generating residual income for you. When you create high-dividend stock portfolios, you help create a good source of passive income for yourself at a much higher rate yearly, when compared to other investments like bank investments. You can also double your passive income source by adding capital appreciation with dividends. Making capital profits together with your dividends won’t be such a bad idea.
Platforms like Ally Invest can also help you with providing these services since they are one of the top brokers we have. Another god thing is that you get these services at a lowest price than other brokers.
In Conclusion, passive income is one of the most desirable ways to make your retirement worthwhile. The internet has also made some of these ideas much easier since you can handle them from anywhere around the world. This saves you the trouble of having to receive littlestipends as pension after several years of investing your time and energy working for someone. With these ideas provide here, you can decide to key in to the one that you deem to be the best and most suitable for you. I strongly recommend that you make massive use of the information embedded here. Wishing you all the best.
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