Finding a way to make money while you sleep is among the most powerful ways to generate income. Passive income, as it is called, is making money with little or no effort, even while you sleep. Not only can it be a great way to create some extra cash flow, but with the economic upheaval caused by the pandemic, having multiple streams of income is now important more than ever.
From bookstores to online social platforms, you are readily bombarded with fantastic dreams about passive income everyday. And so much so that it starts making up this fantasy in your mind of sipping blue hawaii and staring down at your phone, watching your bank accounts grow.
Well, let us break it to you that there might be gazillions of passive income ideas but none will make you rich overnight.
In fact, generating revenue from a passive income stream requires some considerable amount of work. Even yet, many lack the digital marketing knowledge to make it work. But if you are ready to take the plunge to learn and hustle, we have got the best passive income ideas 2021 for you.
The ultimate list of passive income ideas to tap into :
Read on to learn 3 great ideas to meet your top financial goals this year with steady streams of income!
Rental income is one of the most effective ways to earn passive income. But it often needs more preparation and planning than you first expect. You have to learn about the ins and outs of real estate in order to make this a profitable venture. The three most important things to determine are:
- How much return you want from your rental property
- What are the total associated costs and expenses
- Are there any financial risks of owning the property
For instance, if you want to earn $10,000 a year in rental income and the monthly mortgage is say $2,000 and other additional costs are $300, you can charge $3,133 in monthly rent to meet your goal.
Risks: A few risks that you should consider includes the market for your property, late payments or property damages. If you are unable to rent out your property soon, that could be a major setback to your passive income as well.
Risky Passive income ideas : Investment in Stocks and Bonds
Investment in stocks and bonds have been the textbook definition of passive income. All you have to do is to research for the companies that can be more profitable in the future and buy stock in them. So as the value of the company increases, so will the worth of your shares. Stock trading or bonds are easy to buy and incredibly convenient to trade. This makes them extremely liquid and there’s not even any restriction of minimum investment.
Risks: A few risks involved in generating revenue from this stream of income include difficulty to consistently earn and the stock market fluctuations that give stocks and bonds a volatile nature.
Earning from a Blog
Blogging is by far one of the most popular ways to make passive income. It is the most passive type of income as the revenue comes in from three income streams; affiliate marketing, advertisements, and digital product sales.
When you first think of starting this passive income venture, it is nothing but natural to want to pick a passion to write about. But you have to understand that modern day blogging isn’t necessarily all about writing, rather it is about running your blog like any other online business. The biggest perk of earning from a blog is that you can cash flow from different streams of income.
Risks: While meeting your top financial goals from blogging does seem like a tempting idea. But the truth is this passive income venture can be a bit of upfront work, especially in order to make it successful. If you are not implementing keyword research, your blogging ship might run aground. Then there is the aspect of learning to monetize your website and building relationships with other bloggers. Not to mention quality and unique content you have to create throughout.
Create an App that Sells
People download different applications all the time and an app that goes viral earns the creator a lot of money. You develop the app once and it pay you perpetually. And not just that you can sell access to the app, content within the app, and even earn by running advertisements within the app. You can also partner with a friends who knows how to develop an app. So you can bring in the idea and your friend can develop and design it.
You can try building an app, there are some free app making tools online like this one, that might come handy.
Risks: The biggest risk in this passive income venture is developing an app that your target users do not want. All of your money and time can go wasted if no one uses the app.
It is often noted that an average millionaire has up to seven streams of income while an average Joe has one. This is also one of the biggest differences that creates wealth gap between the rich and the poor. Fortunately, there are countless different ways to generate revenue in a passive way.
But it is important to understand that half the battle is just getting started and the rest is sticking with it. Like all good things in life, your passive income idea 2021 would probably start small. But as you remain steadfast and focused, it can potentially grow into a steady stream of income.
If you need help in budgeting for your passive income venture, the Doctor Money app can lend you the help you need in managing your finances. Download the app today and get your passive income rolling. Because you may tire, but your money will not retire!