This post was most recently updated on November 27th, 2019
The best ways to generate passive income don’t have to be tedious and complex!
After all, there’s a reason why it’s called “passive” income. Setting up multiple streams of income could be the best financial decision you’ve made in a long while, especially if your day job isn’t paying enough.
But before we get down to the details, it’s important we start with the basics.
For starters, you may have heard about the buzz revolving around how to generate passive income but what is it, anyway?
What is Passive Income?
It’s basically the amount of money you earn from methods that don’t require much work. In majority of the cases, you may have to put in a lot of effort during the beginning of the process but once you’ve sorted everything out, you can expect steady income in the next few months.
For instance, creating an online course may initially be taxing, from collecting the right materials to filming yourself but once the final product is out there, you can expect regular passive income as long as people continue to buy your course.
Best Ways to Generate Passive Income
To make things easier, we’ve compiled a list of some super-simple ways to earn passive income:
1. Teach What You Do
One of the most fool-proof ways to become better at your job is to teach it to someone else. This also counts for students who could use some extra cash. People are always looking for ways to enhance their skills or pick up new hobbies, consider creating an online course to help others in exchange for a monetary fee.
If you’re not too thrilled about making a full-fledged course, you can create a YouTube channel instead to upload your videos. It might take a couple of months for you to get a large number of subscribers but once you’re there, you monetize your YouTube channel and start your passive income journey.
2. Start a Blog
Blogging is probably the most popular way to earn passive income. And no, setting up a blog isn’t as difficult as you think. Once you’ve figured out what niche you’d like to work on, all you have to do is choose a hosting platform and a domain name for your blog.
While a lot of beginners think it’s a good idea to experiment with free hosting platforms, you’re better off using paid options such as Bluehost, DreamHost or MaxBounty. While these platforms may seem expensive to you at first, it really is worth the money and will give your blog a more professional look.
The next step is to regularly post content on your site. If you already have a day job to worry about, consider hiring someone to share some of the workload with. Your aim should be to drive steady traffic to your blog since that’ll help you monetize your earnings.
3. Use Passive Income Apps
If you’re new to the world of passive income and don’t want to make any drastic changes in your life, consider using passive income apps.
While these apps can only help you earn token amounts, it’s still a pretty good start considering you don’t have to do anything.
One of our favorites is a free app called Ibottta. Use this app to win cash rebates when you’re grocery shopping for staple items such as frozen vegetables, eggs, apples, and milk. The best thing about this app is that you don’t have to stick to a particular brand to earn rewards, making it one of the best ways to generate passive income.
4. Set Up an eCommerce Store
It’s not as difficult as it looks!
Thanks to eCommerce sites such as Shopify, you can easily create an online store to call your own. Rest assured, these platforms contain ready-made templates that’ll make the process less overwhelming. Initially, you can also hire someone to help you avoid product details and come up with descriptions but once that’s taken care of, you won’t require much help.
However, the level of difficulty will vary depending on what you’re selling. The reason we recommend using an eCommerce platform is because it makes payment processes, creating coupons and handling results a lot easier. You can also social share your stores on platforms such as Facebook, eBay and Google Shopping.
Alternatively, you can also use Shopify for drop shipping.
5. Passive Real Estate Investing
Yes, real estate investing IS one of the most profitable ways to generate revenue but not everybody has the time to supervise tenants or meet contractors regularly. And that’s why we recommend passive real estate investing.
Unlike active investing, passive investing provides investors the opportunity to take the easy way out and not be actively involved in the proceedings.
Investing in mutual funds and real estate investment trusts (REITs) are both excellent ways to earn passive income. The only downside is that you might not have much control over the organization’s investment policies.
Alternatively, you can also hire a contractor or a property manager for your passive rental property. However, we advise you always keep yourself in the loop and not completely cut yourself off from the project.
Best Ways to Generate Passive Income: Closing Note
We hope this handy guide has helped you learn everything there is to know about the best ways to generate passive income.
Is there something you’d like to add? Please tell us about it in the comment section below!