Passive income is money you make while you’re busy doing other things, like sleeping or running your business. It doesn’t sound too sexy, but it can be very lucrative if you know how to go about getting it right! Here are some simple ideas that I have personally used to generate passive income and build wealth in the New Year and beyond…
1) Rental Properties
Rental properties are a great way to create passive income streams. The idea is that you purchase an investment property, live in it for a short period of time, and then lease it to somebody else. After all expenses have been paid (mortgage, insurance, taxes), you should net between 8% and 12% on your original investment. That’s not including any increase in property value or rent increases over time.
2) Dividend stocks
Dividend stocks are a great way to generate passive income. Dividends can be reinvested and generate more dividends, which means that you can have an ever-growing stream of dividends.
For example, a company like Procter & Gamble (PG) pays quarterly dividends, and has been increasing their dividend payout every year since they started paying them back in 1980.
3) Peer-to-peer lending
Peer-to-peer lending (also known as person-to-person lending) is a form of crowdfunding that matches borrowers and lenders online. Lenders invest their money into a loan that is made to one or more individuals. Investors can choose from various types of loans, including short term and long term loans, secured and unsecured loans, personal loans, business loans, international loans and even student loans.
4) Investing in a business
Investing in a business can be a great way to generate passive income. You can invest by purchasing shares of stock, becoming a silent partner, or by lending money. Investing is also appealing because you don’t have to work as hard as you would if you were starting your own business.
5) Creating an online course
You could create an online course that teaches people about a skill you have. If you’re a good teacher, you’ll be able to make a lot of money by teaching others what you know. Plus, this way, your students can learn at their own pace and on their own time.
6) Writing an e-book
If you’re looking to generate some passive income, consider writing an e-book. Your book doesn’t have to be long or complicated — it just needs a compelling message and good content. There are plenty of ways you can monetize your e-book too, so there’s no excuse not to give it a try.
7) Building a blog
Generating some passive income is a great way to start building your wealth. One of the best ways you can do this is by investing in real estate, as it’s not just an investment–it’s also a place for you and your family. You can purchase an empty lot, or use a home that needs some work, and over time, rent it out or sell it at a profit.
8) Creating a YouTube channel
With an internet connection and a smartphone, you can create a YouTube channel that generates free passive income. All you have to do is upload videos of your content (be it vlogs, video blogs, or any other type of video) and then monetize them with either ads or by selling subscriptions. This way, when people watch your videos they see a brief ad before they can continue watching.
9) App development
If you’re looking for a way to make some extra money on your own time, consider developing an app and releasing it onto the marketplace. With platforms like Android Studio and Xcode, it’s never been easier or more affordable to design, develop, and publish your own app. There are many different categories of apps that can generate a lot of money – games, entertainment apps, lifestyle apps – so there’s no shortage of options.
10) Dropshipping
Dropshipping is a way of selling products without ever owning any inventory. The business owner will purchase products at wholesale prices and then sell them online through their own e-commerce store. Dropshipping can be a great option for anyone looking to make money with little risk or start an online business with no upfront costs.