If you are hoping to build wealth, save up a substantial amount of money to enjoy a luxurious early retirement, or are simply looking for a method of earning more money to enjoy better financial security and get rid of money-related stress in your life, then you may have already heard about the benefits of earning a passive income. A passive income can be very powerful, as although most methods of earning one do require some work and investment in the beginning, in the long-run, they won’t take up your time – many passive income earning methods can actually enable you to generate enough money to cover your living expenses and more, without having to lift a finger!
So, how do you get started making your passive income? Whether you have a little or a lot to initially invest, there are many different methods to choose from, with something to suit just about anyone. We’ve listed some of the best options to choose from when it comes to generating a passive income and enjoying great financial security that won’t eat away at your time and energy.
#1. Commercial Property Investment:
Property investment is one of the best ways to make a passive income; once you have purchased a property and ensured that it is in usable condition, you can sit back and watch the money come in each month when your tenant makes their rental payment. If you have the capital to make an investment in property, then you might want to think about investing in commercial real estate, such as an office building or retail space that can be used by a business. For many property investors, this is the best option to choose from since not only are business lease contracts usually very long-term, reputable, established companies can usually be more trusted to make rental payments on time and keep your property in great condition – after all, the appearance and condition of the property will also matter to their customers.
#2. Residential Property Investment:
If you are considering investing in property to generate a passive income but don’t yet have the means or funds to invest in commercial real estate, then you might want to consider investing in residential homes. This is often a much easier route for first-time property investors; mortgages are available which can help you to purchase the property – this can then be paid off using the rental payments from your tenants.
But, what do you do if you don’t have the funds to purchase another house? If you currently own your home, then you can even begin to make a passive income from that. For example, you could rent out a room in your home to a student, or advertise on Airbnb or similar, to provide a place to stay for people who are visiting your area. However, bear in mind that generating a passive income from your own home usually results in a little more work being required, for example preparing the room or dealing with any issues that arise during the tenancy.
#3. Affiliate Marketing:
Affiliate marketing is one of the methods that requires a lot of work to get started with, but can certainly pay off massively in the future. As an affiliate marketer, it will be your job to sell products and services on behalf of others. Each time you sell a product or service, you will receive a commission from the brand that you are promoting. This is usually done online, for example through an authority blog or comparison website. To achieve success as an affiliate marketer, you will need to first establish yourself as an authority online in your chosen niche. For example, think about your favorite comparison website – although they do not actually sell any of their own products, many individuals trust them to find the right deals and the best prices on a range of products and services.
For ultimate success with affiliate marketing, it’s important to find a niche market that you’re sure will be popular; for example, you could promote products that everybody needs. Or, you could even consider promoting luxury goods and services; whilst the target audience may be smaller, you will receive a larger commission for more expensive items therefore your total number of sales can be lower to achieve the income that you need.
#4. Develop an App:
Today, there’s an app for everything, and people are coming up with fresh, new application ideas every single day. If you are already skilled with programming, then this could be the perfect option for you, since once your app is created and launched, there’s little work that needs to be done whilst you’ll receive a payment each time it is downloaded.
Aside from updating your app to make sure that it works with the latest operating systems, the hard work will be over. Even if you don’t have the last clue about coding, don’t worry – your awesome app idea doesn’t have to remain a nice dream. There are many websites and tutorials online where you can teach yourself to code, along with user-friendly programs that can help you to create an app. Or, if you think that your app idea is worth investing in, you can get a professional developer to do it for you.
#5. Write an eBook:
Lastly, if you’re good with words and have a story to tell or advice to give, then why not think about writing an eBook? As with app development, once your eBook is written, put together and uploaded onto the relevant platforms, you can sit back, relax, and watch the money come in each time somebody purchases it. When it comes to topic ideas, the list is endless! More and more people are using e-readers and apps such as iBooks or the Kindle app to read all kinds of book genres, from self-help to romantic stories to action, crime and thrillers. No matter what you enjoy writing about or can offer your knowledge on, you can write an eBook about it.
Which method resonates with you the most? We’d love to hear from you in the comments.