The amount of money you earn simply by sitting back and doingnothing is known as “passive income”. Though passive incomerequires a basement of investing money and time, it puts you on theroad to success to financial independence faster. If all thingshappen as arranged, you will enjoy an ongoing stream of incomerather than spending time and effort to work.
What is passive income?
Passive income is income received consistently that requireslittle or even no effort to maintain. The idea of making passiveincome has been more and more popular in every country, becoming amust-have approach if you are keen on accomplishing “financialfreedom” of your own.
Whatever the term passive income means to you, incorporating atleast one passive income stream (or even more) into your generalfinancial picture can be a great method.
Advantages of passive income
Even when you are healthy enough to work on a regular basis,there is a limitation to the amount you can earn. Also, if yourwellbeing is unsustainable, your paycheck might fall suddenly as aconsequence.
Passive income can erase those limitations: you can earn moneypassively whatever stage in life and in any physical condition. Alarger stream of passive income gives you more opportunities todecide how you invest your energy and save money for your financialgoals (such as retirement, buying cars, buying houses or even fordebt repayment).
Some types of passive income
Normally, you can earn money passively by buying, creating, orcontributing to a resource that produces cash.
- Buy: Investing in dividend stocks, bonds, annuities, or rentalproperties.
- Create: Developing a product or service that generates cash.
- Contribute: Investing in an existing business or a limitedpartnership. OR Making an asset you already own (which is availablefor sale or lease, for example: renting out a room in yourhouse).
If you are living in Vietnam and currently having financialdifficulties, you can immediately contact OnCredit online loanconsulting service for support. To register and receive a personalloan (vay online) from our lendingpartner, you can (1) visit the OnCredit website or (2) download theOnCredit app to your phone and following the instructions.
6 different ways to make passive income for yourself
1. Selling informative products
One famous method for passive income is building up aninformative product like e-book, audio or video course, thenselling these products to receive cash. For example: You candistribute English courses through sites like SkillShare orCoursera. The targeted customers could be language teachers orsmall language centers.
As another alternative on this topic, you could benefit fromcommercials (or sponsors) to earn your income, if you provideinformation or content on a free platform like YouTube. Forinstance, take your affection for video games or music andtransform it into special content. However, you need to be creativeand make your own specialties to attract a great deal ofaudience.
2. Income from renting
Putting effort in rental properties is also an effective methodto acquire passive income. In any case, it regularly requires morework than people anticipate. To receive passive income from rentalproperties, you must decide 3 things:
- How much profit that you want to make from this investment;
- Total costs and expenses of your property;
- The financial risks of possessing that property.
For example, you can choose to lease your home for short-term.This direct strategy will help you exploit the space that you arenot using anyway yet still become an opportunity to make interest.In case you will go far from home in the whole summer or must beaway for some time for personal reasons, or simply need to travel,please consider leasing your current living space.
You can list your space on some websites for leasing (such asAirbnb) and set the rental conditions and terms. However, allowingstrangers to stay in your home could lead to dangerous situationsfor most passive investments. For instance: tenants may damage oreven destroy your property or even steal valuable assets.
3. Doing affiliate marketing
Website owners, influencers on social media sites or bloggerscan promote a third party’s product and receive bonuses fromaffiliate marketing. We just need to simply include a link to theproduct on a well-known website or account. Amazon, eBay, Awin orShareASale may be the most popular affiliate partners on a globalscale. Some biggest platforms for those looking to grow their ownaudience and promote products could be listed as Instagram, TikTok,Youtube, Facebook…
At the point when a guest taps on the link and makes a purchasefrom the affiliate sites, that site owner receives a commission.The commission might range from 3 to 7 percent, so it will probablybe critical traffic to your site to generate genuine income.However, You will need to set aside effort to create content andbuild traffic for your site(s). It can take significant investmentto build an interesting and fascinating place. Moreover, you alsohave to track down the right formula for drawing the audience’sattention – a process that itself may take some time.
4. Peer-to-peer (P2P) lending
A peer-to-peer (P2P) lending is the service providing personalloan, which is made among you and a borrower and is facilitated bya third-party platform like Prosper, LendingClub, etc. As amoneylender, you earn money with interest payments generated fromthe loans. However, since the loan is unsecured (not having anypledge or mortgage), you face the risk of default, which means youcould end up with no interest or even not receive your originalmoney.
5. Create an app
Making a new and useful app could be an approach to make thatupfront investment of time and afterward receive the benefit aftersome time. Your app could be a game or one that assists mobileusers perform some hard-to-do work. Once your application ispublic, users can download it and an amount of income can begenerated from here.
On the off chance that your application acquires popularity oryou receive feedback, you’ll probably have to add additive featuresto keep the app relevant and popular.
You will likewise need to ensure that if your app gathers anyinformation that it’s in accordance with privacy laws, which differacross countries in the world.
6. Advertise on your car
You might have the option to bring in some additional earningsby simply driving your car around your town. Here is how you do it:first, let’s contact a specialized advertising agency, which willassess your driving habits (means where you drive and the number ofmiles). In case you’re a match with one of their advertisers, theagency will “decorate” your car with the advertisements at no costto you. But please be extra mindful to find a legitimate agency tocollaborate with. Numerous fraudsters have been setting up scams tobilk you out of money.
