Having a passive income stream is a great way to free up your time to allow you to enjoy life to its fullest. By definition, a passive income is one that you earn without actively being involved.
In some cases, you will be involved in the beginning as you are setting up a revenue stream and in others, you are simply investing to create a revenue stream, but the secret is that you are not committing to a forty hour a week job that you must work fifty-two weeks a year.
Learning the passive income business is a great way to secure your financial future while still having the time to do what you want to do instead of being chained to a desk all day every day.
Grow the Money That You Have
If you are putting your money in a savings account then you are earning about 1% interest. The money is secure and you are getting a tiny benefit in the form of interest but it will never make you rich or allow you to live on that 1% interest. But you have another option that can prove to be much more lucrative.
There are numerous investment clubs that allow you to invest and expect a rate of return at about 10% or even more. To reduce your risk in these types of investments, you can diversify over numerous small loans and not have to worry about one bad loan costing you your life savings. And the benefit of the roughly 10% interest will not be affected.
Make Money Doing the Things You Already Do
Most of these tasks are not going to make you rich but when you add them all together they do provide a nice little revenue stream. And the best part is that you are not required to do anything other than the things that are already doing every day. In most cases, it is as simple as signing up for an account. There are cash back rewards that you will get just for using your credit card to buy food or fuel.
You can also sign up for several websites that pay you a reward for shopping online. Everyone goes to a website to get exactly what they want in the right size and color when the store doesn’t have it in stock. So why not cash in on a 5% cash back rebate at the same time? And using your rewards credit card to pay for it means that now the reward is 7%, not just 5%.
And if you belong to the stores loyalty program then you will be getting a third bonus for that one single purchase. If you drive a lot then think about signing up for one of the ride share programs like Lyft or Uber. Why not take a few minutes to pick up a passenger for that drive across town? Not only is it making you money but now you can deduct car expenses from your income taxes because you are using your car for business.
Make Money with Your Hobby
Do you enjoy spending a weekend taking pictures? Have you ever considered taking pictures for an event? You can easily make a few hundred bucks taking photos at a company function or party. If you are more into shooting landscape and the natural world then consider listing your photos for sale online as stock photos.
Or you can create a website for a few dollars a month and sell your photo prints. Doing craft projects is another great way to take something that you enjoy and turn it into some extra cash. Now you are not even investing in the cost of the materials because selling the craft items pays for your hobby materials. It is a savings from your monthly budget as well as a revenue stream. And it is something that you were already doing.
Sell Your Product
This is a process that will require some work on the front end but then it will generate passive income. If you have created a product that you want to sell online then you already have done most of the heavy lifting. You might have written a book, created an app, made a how to DVD or designed a piece of software, but whatever it is it can be marketed online. Setting up an e-commerce website is very simple now with all of the services and features that hosting companies provide.
Then all you need to do is get the word out via social media and watch the sales start to roll in. This is a great way to market just about anything that you make and it can even be a place to sell your craft and hobby items. All it takes is the time to create the site and get it up and running on the Internet.
You also have the ability to sell other people’s items if they don’t want to create their own website. Now you are getting passive income from your product as well as other peoples.
If you know of a business that is doing well but needs an investment to fund growth and expansion, then you should consider becoming a silent partner. Instead of loaning the business money and just getting paid back with interest for a few years, offer the money in exchange for a portion of ownership in the company.
You become a silent partner in exchange for the investment. Now you will be getting a passive income based on the success and growth of the company and all you do is wait for the check to come to you. You have no responsibility for the management of the business but you benefit from its success. Investing some time and money into a passive income business is a great way to grow your wealth and free up your time. Once you have the business running, your time is your own and the money just comes to you.