Easy Passive Income: A Guide for Beginners

Passive income has become more popular than ever for people who want to be in charge of their time and not spend at work most of it. Around 36 percent of millennials already have some kind of passive income stream, and the average earning (among all ages) is about $4,200 per year. That said, while so many enjoy this method of earning money, not everyone knows where to start.

Opportunities come in many forms, and all you need to do is find the one that works best for your style. In this article, you will learn more about passive income and your options for earning extra cash.

Passive income is the kind of revenue you get without adding a lot of active work or making substantial modifications to your daily schedule. It brings additional earnings into the home, aside from the main amount from your day job. While some maintenance still needs to be done, passive income can be earned even while you sleep, depending on your revenue sources and how well you set them.

Keep in mind that passive income might need some degree of involvement in the beginning stages. This could be moments of your precious time or a financial investment to set the stage. However, as the investments mature over time, the involvement should lessen, and you could be able to maintain a steady cash flux coming your way.

Passive income comes in many shapes, depending on your skills, needs, and the amount of time you want to invest. Below are some popular options that could be right up your alley:

 

1.    Dividend Investing

This is a great way to earn some passive income, especially if you go for high-yield dividend stocks. Companies rely on investors to purchase stocks from them, as it helps keep the business running. In return for your investment, you will receive dividends every quarter.

Bear in mind that dividends only get a small amount of money per share every year, so having two or three shares will not be enough. In order to make a decent yearly income or live off it completely, you may need to invest in thousands of those shares.

Each company is different and has various payouts, as well as varying degrees of potential. It’s best to invest in companies with low stock prices but with great potential for the future. If you have zero experience in the matter, your best option would be to employ the help of a financial advisor – they should be able to guide you in the right direction.

 

2.    Rental Properties

Rental properties are some of the best ways to make passive income nowadays. This is especially true as millennials often prefer renting instead of buying, as the housing market has become rather rough. If you have a home, a room, or an annex to your house that you are no longer using, you should consider renting it out.

You could also buy a second home through a mortgage, only setting the rent price slightly higher than your monthly payments. This way, you will get passive income, and the home will pay for itself more or less.

Moreover, apartments and homes are not the only things you can rent. Perhaps you have a garage or a private parking spot you are no longer using. In that case, it could bring extra earnings your way. There are more than 947 million cars worldwide, and as we all know, it’s a real adventure trying to find a free parking space. By renting yours, you assure the tenant they have a secure spot to return to. In exchange, you will gain monthly revenue with (almost) zero time investment.

 

3.    Online Course Creation

The drive for education is higher than ever now, with more people trying to look up ways to improve their knowledge in a more affordable and less time-consuming manner. For instance, if you have knowledge of a specific topic, you could use it to put together a course. Let’s say you have a day job in marketing. In this case, you could create a guide for others to develop an effective content marketing strategy.

The main advantage is that you will only be required to put in effort initially when you put together the materials for the classes. Once the course is done and published on the platform of your choice, you will receive income and royalties each time people purchase it.

Even if it’s a course you developed two years ago, it will still earn income if it is relevant. The more of these you create, the more passive income you could get from them in the long run.

 

4.    Affiliate Marketing

Affiliate marketing is an excellent way to earn passive income, especially if you are a blogger or an influencer. By working with certain brands or companies offering services/products, you could earn a commission each time your followers use the referral link you promote. The more referrals you make, the higher your chances of earning a steady income.

The best part of affiliate marketing is that the referral links will likely work for a long time, sometimes indefinitely. Maybe you wrote a blog 3 years ago when you referred your clients to a particular service. You will still earn money if visitors come across your article today and use the link to purchase the service.

Each time someone uses the services or buys the products from your referral link or code, you get a commission. While this method requires significant involvement and content creation in the beginning, it becomes easier as search engines push you to the top and recognize you as an authority in your domain.

 

5.    Bandwidth Sharing

Everything you are not using can be leased or rented out, including your excess network bandwidth. Nowadays, Internet providers offer large packages with extra bandwidth that not many individuals use. On the other hand, some companies barely make it with their data or only require it for a limited amount of time.

If you have excess Internet you are not using, tools such as the Honeygain principle can be a very effective way to explore passive income opportunities. You set a limit for how much of your bandwidth people can use, and you get money or gift cards each in return. This allows you to get the most out of your Internet subscription, especially if you can’t change your subscription plans.

Once you learn how to earn passive money, you should know how to stabilize it. Below are some tips that could help:

 

1.    Secure Your Earnings

Depending on how much income you get, it might end up as collateral for theft or other unfortunate circumstances. Super-hackers are getting better at what they are doing, and an incorrectly secured account could leave you facing identity theft. You have to outsmart them by effectively securing your earnings.

Make sure to have strong passwords and only use secured platforms to earn money. Using a password manager could be very useful in safeguarding your log is to financial accounts and preventing unauthorized access.

 

2.    Invest Small Amounts

It’s no secret that passive income could need some investments, especially in the beginning stages. However, the wise thing would be not to invest farther than you can reach.

A good tip from investors would be to allocate up to 15 percent of your income to investment. Don’t be disappointed if you can’t do that right away – you will eventually build into it.

 

3.    Keep It Relevant

Passive income does have the potential to bring pretty revenue your way, but you need to learn how to maintain it. At this point, the best thing you can do is make sure your strategy remains relevant and qualitative.

For instance, if your income comes from affiliate marketing, you should take some time to constantly create blog articles and social media posts to stay on top of searches. Likewise, if your stream comes from rental property, you should ensure it meets the standards.

 

4.    Diversify Your Portfolio

Perhaps the best thing you can do for your portfolio is to make sure it does not follow the same pattern. For instance, you may be interested in dividend stocks, but you shouldn’t just buy thousands of them from the same industry or company. You could also opt for multiple passive income options, such as combining stocks with affiliate marketing.

If one of those options loses potential in the future, your monthly revenue won’t take a hit. If one source dries out, you will have the other one to fall on and maintain a steady income stream.

Passive income can be a great way to get extra cash without actively involving yourself in the process. You just need to invest some time in the beginning to develop a good strategy that allows you to take the right steps at the right time. This way, you can enjoy a steady stream of money every year, hearing that lovely “ka-ching!” sound even as you sleep.