Are you looking for new ways to increase your income this year?
With so many traditional paths of employment closed off due to the pandemic, going down the passive income route can be a great option. Passive income is when you make money from investments or work that doesn’t require much effort from you once it’s initially set up. Here are a few smart passive income ideas you might want to consider this year.
Invest in real estate
You can become a landlord and rent out properties, or purchase a property with the intention of flipping it for a profit later on. Real estate requires an initial investment but can also be very profitable in the long term. It is important to remember that this isn’t a get-rich-quick scheme, however. You need to research the current real estate market and be prepared for changes in prices. For example, a real estate syndication can involve pooling money with other investors to purchase a property, allowing you to invest without putting up all the capital. You should consider investing in real estate as part of a diverse portfolio and be prepared for the long term.
Start an online business
Setting up an online business can be relatively easy, and can generate passive income with minimal effort. You can start a blog or website, write eBooks or create digital products to sell. All of these can be done from home and require very little upfront investment, so you don’t have to worry about large start-up costs.
For instance, if you are starting an online business selling digital products, then you will need to create the product and make sure it is of good quality. You should also consider how you will market it, as well as the pricing strategy.
Dividend investing is when you purchase stocks with the intention of receiving periodic payments called dividends. As long as the company remains profitable, you can collect a steady income stream from your stock holdings. This is a great option for those who don’t want to actively trade stocks but still want to benefit from the stock market.
If your dividend investing strategy is sound, and you are regularly reinvesting the dividends, then your income stream can steadily increase over time. As with any investment, it’s important to do your research and make sure that you are making a wise decision.
Create an Online Course
Creating an online course is another great way to generate passive income. You can develop a course about any topic of your choice, from photography to coding. Once you’ve created the course, it can be sold for a fee, and you will receive a percentage of each sale. This is a great way to tap into an existing market and earn money without having to do too much work.
Not only is this a great way to make money, but it also has the potential to bring you personal satisfaction and joy as well. It can be incredibly rewarding to share your knowledge with others and help them reach their goals. If you have a wealth of knowledge and experience in a particular area, creating an online course is definitely worth considering.
Sell Digital Products
With digital products, you can create something once and then continue to sell it in perpetuity. Popular options include eBooks, stock photos, music, videos, and web themes. You can create digital products in any field you know a lot about and there are plenty of platforms out there to help you get started.
A good idea here is to start small and create a few products that you can offer for free. This will help build your reputation, as well as increase the visibility of your brand. From there, you can begin to sell more complex paid products and services.
If you have an active website or blog, consider using affiliate marketing to generate passive income. This involves either promoting products or services offered by other companies or linking to their products as an affiliate. Whenever someone clicks on your link and makes a purchase, you will generate an attractive commission.
With affiliate marketing, you don’t have to produce or create your own products. All you need to do is promote the products of other companies and collect commissions on successful sales. It’s a great way to make money without having to put in too much work.
These are just a few of the passive income ideas you can consider this year. Each requires some work to get started, but once you’ve set everything up, it can be an effective way to generate a steady income stream. Be sure to thoroughly research each option before diving in to ensure you make the right decision for your needs. You may find that one passive income idea works better for you than another. Whichever option you choose, it’s important to stay consistent and focus on growing your business.