Passive income is cash made with minimal effort. It is usually income generated alongside your regular 9-5 job. Some examples are rental income, money made from investing and digital income like affiliate marketing. However, it is worth noting that passive income is still taxable, so you must take advice on what taxes you will need to pay before you set off on your side hustle dreams.
There are three main types of income:
- Active Income
- Passive Income
- Portfolio income
Below are 7 tips on the best way to build a passive income stream.
Invest in real estate
Real estate is one of the most reliable passive income streams. But unfortunately, many people don’t realize they can invest in real estate without having any previous experience.
Real estate investing is all about finding properties with growth potential and then turning those properties into money-making machines. This means that you should look for properties that have:
- A good location (close to work or other amenities)
- The chance for appreciation based on market value changes or renovations
- The ability to earn money through rental income
Sell parking spots
Selling your parking spot can be a great way to make money. Many apps help you find buyers. Of course, you will need to get a permit from the city, which may cost around $100 per year, but it’s worth it if you’re going to be making good money off this strategy.
You’ll want to ensure enough demand for your parking space, so it’s worth renting out on the app or website where you advertise it. Location matters and the return will be higher if you live near a busy city. The average cost for parking in big cities like New York, Philadelphia, Boston and Seattle can fetch up to $500 a month. For instance, if you live near downtown Seattle, parking brings around $200 a month, whilst New York tops the list at up to $500. Before you start, check what monthly parking downtown seattle prices usually are and then set yours competitively. Many web-based services offer people directions to parking and the ability to search an area and find reasonable parking prices and spaces.
Become a landlord
There are many ways to become a landlord, but renting out a room in your home is the easiest. If you don’t want to do this, find another way that works: rent out a whole house or property you own. There are pros and cons to being a landlord, but it can be very profitable if done correctly. Of course, you have to be prepared for headaches, but if done correctly, it is an excellent source of passive income!
Buy a storage unit
Storage units are a great way to earn passive income. You can buy a storage unit and rent it out for extra money. You could make enough income from your storage unit to pay for your living expenses! If you’re looking for ways to increase your net worth in 2022, buying a storage unit is one of the best options.
Create a course
A course is a great passive income strategy because you can sell it repeatedly. If your course is good, people will buy it again and later, when they want to learn more about the subject matter. One way to create a course is using software like Teachable or Udemy. These platforms will help you make an online environment where people can purchase your product and access it whenever they want from their desktop computers or mobile devices.
You should include things like:
- The basics of what’s being taught in the course; help with retention rates giving viewers an overview of what they’re getting before diving in deeper. This could also be helpful for those new to the industry or who need some refresher on specific topics related to the niche you’ve chosen for your business venture.
- A variety of exercises (either written or audiovisual) so that students have opportunities for practice and reinforcement of content learned throughout each lesson plan; these activities may also serve as testing mechanisms if used correctly!
Start a blog
This is one of the most popular and easiest ways to make passive income online. There are tons of tutorials and courses out there that can help you get started, but if you’re not sure what kind of blog to start, here are some ideas:
- Writing about your passions and interests. Do you love animals? Start an animal-themed blog! Love fashion? Write about it! Have an obsession with home decorating? Share it with people around the world! There are endless possibilities for blogging because everyone has something they love that they can share with others with similar interests in their areas of expertise (or lack thereof). The possibilities are endless when it comes to finding topics for your site – pick something that interests you personally and go from there!
- Find ways to monetize your website so that people will pay money for what they read. Create YouTube – over time; you can earn money on views of your videos.
Sell printables
Printables are a great way to earn passive income. They can be used for many different purposes, from helping your blog readers create their crafts and recipes to teaching them how to organize their homes or plan a budget. You can sell printables on your blog or through other online platforms like Etsy or Amazon.
Examples of printables you can sell include:
- Recipe cards (for example, recipe cards with pictures)
- Decorating tips (for example, instructions on how to create decorative touches that don’t require much money)
There are several tried and true strategies to create passive income, but some require more time than others
When creating passive income, there are several tried and true strategies to help you get started. The first is to take advantage of compound interest. For example, if you invest a large sum of money into an index fund and let it sit for years (or decades), the investment can grow significantly over time. You may also consider investing in real estate or starting an online business as another way to create passive income.
Conclusion
Please take a look at our list of passive income ideas and see what catches your eye. We hope you’re inspired to try some new ways of earning extra cash! If all else fails, remember that you can always take on more side hustles.