Passive Income Streams: The Best examples

Passive Income Streams: The Best examples

Did you know you could be making money from something you did a few months ago? Or last year? Even something you did 10 years ago that is generating passive income streams, like royalties, interests, rents, and others.

On one side your active income derives from paychecks, tips, and commissions. Instead, Passive income is money you receive from any business in which you’re not actively involved. In other words, you get paid multiple times for work done once.

As you keep your passive income streams growing, you can reach a point where you won’t need a salary anymore. Thus being able to use your time as you see fit. You can keep your job if it’s actually fulfilling for you, or you may quit in order to do something that satisfies your dreams:
Whatever you do it doesn’t have to be about the money anymore, but about you as you achieve financial freedom.

Passive income streams: Money as you sleep

Yes, passive income does technically mean you make money while sleeping but don’t think it’s so straightforward. In the beginning, it requires work, time, money or all of them. But has the lucrative bonus of producing continuous income.

That’s why you should consider multiple ways of making passive income before starting. This way you put your time and effort into something that suits you the best.

That’s why you should consider multiple ways of making passive income before starting. This way you put your time and effort into something that suits you the best.

Conveniently, some of the ideas are pretty flexible when it comes to taste, mostly blogging and other online activities. Some of them don’t even require previous experience or a determined skill, so everyone can find their own way to build passive income streams!

There’s plenty of options to pick from, both online and in real life. Let’s review some of them.

1) Investing

Par excellence, the traditional method to earn passive income and the most ancient alongside acquiring real estate. However, investing has always been available to the general public as it doesn’t necessarily demand enormous quantities of money to participate, unlike real estate which has been historically associated with the rich and wealthy.

  1. Stock purchase


    When you buy stock from a company and become a shareholder, they will reward you with a portion of their earnings quarterly or so. But have in mind: if you want to build a high-dividends portfolio, you need to do some research on the stocks you want to invest in.

    Anyway, you should have general knowledge about what you’re getting into. Here is an article from NASDAQ’s webpage to begin with. For monitoring specific stocks, you can use a stock screener (like Yahoo Finance’s).

  2. Index funds

    If you liked the idea of buying stocks but it’s still too complicated or risky for you, don’t worry; You can go full passive and invest your money in an index fund. Here you’re handing your money for someone else to buy and manage stocks. This method is praised for being stable and profitable in the long-run.

  3. Robo-advisors

    Okay now, investing won’t get simpler than this. A software manages your money through algorithms, so your investments are running on automatic pilot. You can check some of the best platforms out there: Betterment is easy to set up and has some of the lowest fees. M1 Finance is totally free to use, and Blooom is designed for employer-sponsored accounts.

2) Real Estate:

Crowdfunded real estate

Renting property is not entirely passive if you decide to take full responsibility of the property, but there’s an option to ease things for you.

Crowdfunded real estate is a way to invest in real estate alongside other people. You don’t participate directly in its management and it’s much more economically accessible than buying real estate. You can check PeerStreet which requires a minimum of $1.000 in investment and has 6-9% in returns annually.

3) Interests

  1. High-yield savings accounts

    The safest way of investing is opening a savings account with high interests. It’s slow but consistent, so it’s a secured stream of passive income. CIT Bank with 2.25% annual percentage yield (APY), or Marcus by Goldman Sachs and Barclays with 2.05% APY are some of the best options.
  2. Peer to peer lending

    Some people don’t meet the requirements for credits or loans from banks, so when they need to borrow money they’ll probably take a personal loan. Lending Club is a popular platform for this. These loans have higher interests than a bank’s, usually around 10%.

4) Online Businesses

Blogging

Blogging

It requires work, intention and time. But hosting a website is so cheap (less than $3 per month) and the potential earnings are so high, it’s a great way to make passive income streams.

Sam Dogen explains why blogging is such a good way to achieve financial freedom, making over $300.000 annually in less than 5 years from his blog alone.

However, you can always buy a blog at Flippa and run it yourself or keep the previous owner as an employee. You can boost your income through affiliate marketing.

Make a product online

Reading Ebook

E-books, online courses, guides, audio books, podcasts, or YouTube videos. Some may be more difficult than the others and require good quality to make it profitable, but each can provide good revenue for years.

There’s many places to publish your work, but it’s key to promote it in the right places;

You have to know your target and spread the word about your work. If you want to know more, you can read our article about digital marketing.

Passive income streams and the Rise of the Internet

Many other ways exist: start or buy a business, sell your photos on Shutterstock, license your music, rent a room in your house, and many more.

There are countless ways to make passive income streams and achieve financial freedom with it. In this day and age, you can start building your future right where you sit at this very moment, and it’s appealing to see how many traditional ways to invest have found their way on the internet thus making it accessible, easier, and sometimes even cheaper for everyone around the world.

We hope you liked this article. Please leave us a comment letting us now, what is right now, in your opinion, the best passive income stream.

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