Having different passive income sources is ideal, especially as unforeseen events can affect you financially. If you are looking to make some extra income but don’t know where to start, you’re in the right place. Having various sources of passive income can help you achieve financial freedom. You don’t have to rely on your active income to enjoy the lifestyle you desire.
Passive income for beginners is a frequent topic of discussion, so through this guide, we aim to give you some help by presenting you with some passive income strategies for beginners. Furthermore, we will go deeper into the best ideas for a simple passive income, particularly for anyone who is just getting started on their path to financial independence.
What Is Passive Income?
A passive income is money that is generated without putting forth a lot of work. Passive income requires initial investment and effort, but only until your passive income stream is generating revenue. You may boost your earning potential in a variety of ways. Investing in various financial products, creating a business, or renting out your home are all examples of passive income ideas.
Passive Income Strategies for Beginners: Types of Passive Income
There are several types of passive income streams that you can try or consider as a beginner. At first, you will need to research and learn what’s the best strategy you can follow. Then, you have to consider your goals and if it’s something you want to sustain in the long run. Below you will find some common passive income strategies to help you get started.
Websites like Airbnb allow people to list and find staycations and rental properties. You can list extra space, rooms, or properties on Airbnb and generate income from guests. According to a study by Apartment List, rental prices have increased by 17.8 percent, which means property owners have the opportunity to make more money. You can list your property as a long-term or short-term rental.
Another passive income idea is affiliate marketing, which involves earning a commission to sell people’s products or services. For example, podcasters and bloggers use affiliate programs to add to their current income streams. Affiliate sales don’t involve a lot of work. You just have to share a product and you earn when people buy it. Affiliate marketers can earn an average salary of $154,700 per year.
When you make a financial investment, you partner up with financial institutions to invest in bonds, mutual funds, or individual stock. You’ll have to choose the type of investment you want to make. The value of your shares can increase, which can become a passive income for you in the long run.
10 Best Passive Income Ideas for Beginners
1. Sell Digital Products
Customers can’t physically touch digital products because they are pieces of media. Kindle books, plug-ins, PDFs, printables, UX kits, and templates are all examples of digital media products. The best part about selling digital products is that you’ll only have to manufacture them once and then you can sell them multiple times online. Another benefit of digital products is that they do not need physical storage.
2. Start a Blog
Anyone can start a blog because you don’t need to know about graphic design or coding. You can start a blog by simply paying for a hosting service such as WordPress. Writing sponsored posts, selling affiliate products, offering affiliate links, and running advertisements through Google Adsense are all ways to make a passive income from blogging. It can also be a way for you to sell your digital products.
3. Sell Stock Photos
If you enjoy photography, this passive income idea is for you. You don’t need to have any financial resources to start out. Selling stock photos on Shutterstock, Pexels, or other sites that buy high-quality images and videos is an excellent passive income stream. There are courses you can take to learn photography, which can enhance your photography skills.
4. Buying Property
Real estate investment is considered a good way to build long-term wealth. Getting into real estate can prove to be an excellent source of income. When you buy a property you can choose to either keep it for yourself, list it for rental income, or renovate it and sell it. You can make quite a bit of money buying, renovating, and selling properties.
5. Write an EBook
Writing an ebook is one of the best passive income opportunities because you write an ebook once and then sell it indefinitely. When someone buys a copy, you’ll get royalties. A book royalty means that the publisher pays the author to get the rights to publish their book. You get royalties by calculating the percentage of book sales.
6. Peer Lending
A passive income idea that has been getting traction the last few years is peer lending. Your target customers will typically be people who didn’t qualify for a traditional loan. Like a bank, you can charge interest until the amount is paid back in full. However, you should know that this is a high-risk venture, so it’s a good idea to get all loan conditions and agreements in writing.
7. Start a Youtube Channel or Podcast
YouTube is a reliable source of passive income. Once you get a large following, you can earn money through collaborations with affiliate marketers, get paid for advertisements, get paid by sponsorships, and get monetized by views. This has a great income potential, especially if you love creating videos. Your topics can just be something you love to do or talk about.
8. Invest in Dividend Stocks
One way to achieve financial independence is to invest in stocks that offer high dividends to shareholders. There’s a high potential of earning a lot of cash through your investments. You’ll be able to earn a passive income as the value of your shares increase. You just have to take note that investments are high-risk, so you should seek advice before you begin.
9. Create a Course on Udemy
Education platforms like Udemy allow you to create and sell a course. This is an excellent opportunity if you are a subject matter expert who wants to share your knowledge. All you need to do is develop a curriculum, create the necessary materials, and upload the content for purchasing. This idea requires very little upfront investment.
10. Invest in a Real Estate Investment Trust
REIT is considered an investment vehicle that holds a property. As an owner, you get to benefit from sales, refinance income, or loss on the property. Some platforms will only ask you for $500 as a minimum investment.
Other Ways to Make Extra Money as a Beginner
- Get freelance work. A freelancer is similar to an independent contractor, except that freelancers only take on one project at a time. You can get freelance work in a variety of fields on platforms like Amazon Turk or Upwork.
- Take surveys. There are survey sites that will pay you for taking surveys on various topics. Popular survey sites include Survey Junkie and Swagbucks. Keep in mind, most survey providers don’t pay much.
- Become a dog sitter. If you love dogs, dog walking, sitting, and boarding is an excellent way to make extra cash. Apps such as Wag and Rover provide on-demand or scheduled dog walking.
- Sell your clothes. Most people have clothes that they’re no longer wearing. As long as your clothes are in good condition, you can sell them on Facebook Marketplace, Craigslist, eBay, or to consignment stores.
- Trade old phones for cash. There may be old gadgets in your house that you’re not using anymore. You can use Amazon’s trade-in program, sell them online, or trade them at a pawnshop for money.
How to Make Passive Income for Beginners
Beginners can start making passive income through a wide range of avenues. Some of the most popular ways to earn passive income are through starting a blog or writing an ebook. You can even use a skill you already have, such as photography or design, and sell stock photos to websites. The path you choose depends on your interests and qualifications.
Passive Income for Beginners FAQ
A beginner can make passive income by investing in stocks or mutual funds, learning about real estate, renting out properties, or starting affiliate marketing.
The best high-paying passive income strategy for beginners is investing in the stock market. Although as indicated previously, the stock market also has a high risk.
The easiest passive income can be earned through a skill or resource you already have. For example, if you’re into photography, you can sell stock photos and earn from them.
If you don’t have much money to invest in your new venture, you can start a blog or YouTube channel. Both of these options require little investment and are capable of generating an excellent passive monthly income.
About us: Career Karma is a platform designed to help job seekers find, research, and connect with job training programs to advance their careers. Learn about the CK publication.