Are you looking for a passive income which can increase your earning potential? Well this post is for you!
Before we tackle about the possible passive income that you can venture in, let me give first a simple definitions of passive income.
So, passive income is a form of income ideas wherein you don’t need to put a lot of effort working for it. While you are sleeping or awake, you are making money! While you are sitting or roaming around, you are making money! When you are spending money for your essential needs, you are complacent that something will come back to you in return, because you have a passive income. But always take note also, that a little effort and managing abilities should accompany it, in order for it to become successful.
Here are the list of passive income ideas that you can do to earn additional money!
Digital passive income:
- Digital products- includes selling of product virtually. No physical products involved. Examples are: selling of E-books such as online courses and designs. These products will cost only your time in producing it, and the good thing is that you can sell it unlimited. You can sell it to your social media accounts, website, or blogs. When someone buys it, you earn money instantly!
- Affiliate marketing- done by promoting a company’s products and services. For you to start on this, you have to look for a legitimate company who offers affiliate program. You need to apply to this company by signing up to their form, submit it and wait for their approval. If ever they approve your application, you can now start with displaying their products to your social media accounts or blogs. If ever someone buys through your affiliate link, you will gain commissions.
- Creating a blog- this is suitable for passionate bloggers, writers or content creators. To those who love to share their ideas and knowledge about anything that interests them. You can create a blog through WordPress. You can start with their free plan, and choose a plan which is suitable to your need later on. How can you earn a passive income from blogging? So, you can earn here by attaching your digital products, affiliate marketing, and displaying of paid ads or banners. But before you can do all of these, you have to grow your blog first to widen your reach.
Physical passive income:
- Rental income- if you have a space in your house that you are not using- you can rent it out to other people, unoccupied property like land- you can lease it to business minded individuals. Car rental and even renting out your modernized equipment could bring you some amount of money!
- Lending- you can earn through this passive income by interest basis. You let someone borrow money from you, and then that person will pay an interest in return. You can calculate it monthly or annually, depending on what you have agreed. It can also include some risk such as, unpaid interests and principal, or inability of your client to pay on time. But, it can be profitable if you have good payers, so you have to choose the right ones.
Bank related passive income:
Note: Do not transact with individuals who are not legal employees of a bank. Before entering to these, you should be able to understand the ups and downs that may occur.
- Stock trading and stock dividends- done through stock trading companies or banks. Stock trading means that you buy a share of a company. The trick here is to buy while the market is down and sell it when the market is high. While waiting for your share to grow and give you some gains, you can also benefit from the stock dividends that the company will distribute to their loyal shareholders. This passive income is suitable for risk-takers and to those who can wait and can understand the trading process. Because there is a possibility that your shares will decrease, and you are unlikely to predict when it will go up. Before you can venture to this, you must prepare an emergency fund for unexpected expenses. The good thing is that it can give a good amount of possible earnings!
- High-yielding savings account- these are available and offered by banks. This passive income is suitable for those who are conservative in terms of putting their money somewhere. Your money will grow while saving it in the bank.
- UITF, or unit investment trust fund- available through banks. They are also a risky venture, but the good thing is that it can also earn you ample money if you are just willing to take the risk and can wait. Once again, just like the stock trading, you should also prepare your finances for possible emergency expenses that may occur.
Thank you for reading this post regarding passive income ideas that you can try to boost your earnings! Hope you found it helpful, good luck passive earners!
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