Most of the jobs people take are just for the extra cash not necessarily because they are passionate about these jobs. We are faced with different financial needs daily and this can be draining thus lead to financial stress which is not healthy for anyone. Passive income is a method used to ensure your money works for you with little or no effort, unlike the counterpart active income which requires daily efforts in order to make money.
There are different benefits of passive income and they include
- Financial freedom
- Improved financial stability
- You can easily achieve your goals
- You have the freedom to pursue your passion
- You are not limited by location
- You tend to retire early
- Reduction in your financial stress
- Financial consistency and many other benefits
As good as this might sound, you need to lay the foundation for you to be able to have streams of passive income. Most times passive income is built from the capital that is generated from active income.
There are different ways to create passive income and these are
1. Invest in dividend stocks
Buy stocks from companies that are reliable, productive and can last the test of time. Buying their stocks makes you a shareholder and this qualifies you to get payment from the company at regular intervals. These amounts of money paid by the company are from the profit made and payment is made depending on the number of stocks that you bought.
2. Develop an app
Developing an app involves you getting coding skills and using this skill to create an app that meets people’s needs. Time and money are needed at first but after this phase, you generate income from the sales of the app. You can also run in-app ads and get paid for all adverts made through your app.
3. Create a youtube channel or a blog
You can convert your passion into a blog or a youtube channel. If you love mathematics, you can create youtube channels that solve different problems in mathematics. If you love fashion, you can create a youtube channel or a blog that covers fashion. With your consistency, you tend to pull the crowd. Once you have a considerable amount of followers, you can start running paid ads and earn money from there.
4. Invest in real estate
Real estate investment is one that doesn’t depreciate, as the years go by your investment tends to appreciate in value thereby giving you good returns. You can buy a property and lease the property out which yields financial returns. You can buy and sell lands or houses.
5. Sell e-books
E-books are widely accepted in today’s world. The world is moving towards a paperless society so, you can write e-books that you’ll sell online. There are different online platforms that you can work with to sell your e-books. The e-books can be on any topic of your choice be it a novel, a motivational book, books on things you like such as fashion, baking, cosmetics or some other interesting topics. Over time this e-book keeps fetching you income as far as they are still being bought.