Since the COVID-19 outbreak, people’s awareness of passive income has significantly increased, especially after inflation skyrocketed. Nowadays, people put a lot of effort into generating passive income, but what’s their secret to success? Let’s take a look and find out: what is passive income?
What is Passive Income?
Passive income is the sum of earnings and gains from all your sources of income – in simple words, you can earn money while you sleep.
Unlike working a day job, passive income is effortless and limitless. Your earnings potential is determined by sources of income, capital gains, and other factors, and can be as big as you want.
Understanding and implementing passive income methods in real life can be a great way to generate extra cash flow. The best part is that it doesn’t take long to learn… but that doesn’t mean it will be a piece of cake either!
How to Generate Passive Income
Unlike traditional income, passive income works differently depending on the strategy or methods you use. The general rule of passive income is that you don’t need to put in much effort to start earning. However, this isn’t exactly true…
Any passive income tool you wish to pursue will require at least some effort to get it off the ground. With that being said, let’s take a look at the best methods of generating passive income.
The Best Passive Income Methods in 2023
Investing in dividend stocks is a good way to guarantee a regular source of passive income. This is when you get paid for owning a particular company, and that company rewards it’s shareholder with regular payments i.e. dividends. This method is highly passive but does require some cash to buy the stock in the first place.
Dividend stocks have a small amount of risk vs other passive income methods. This comes naturally with stock investing, as a company could declare bankruptcy and their stock price plummet, leaving you with your investment at $0. Although this event is highly unlikely, it is important to assess your investments carefully before jumping in. Try to look for well-established companies with solid financials to minimize your risk.
Real Estate Investment Trusts or REITs can be a great source of passive income. They allow you to invest in the real estate market without having to purchase complete properties.
REITs can be bought through savings accounts, investment brokers, or online real estate platforms. The best part about investing in REITs is that they are low-risk and have a high potential return.
Inflation and market turmoil has ensured that physical gold is an attractive source of passive income. Currency gold prices are worth more than $1830 per ounce, and experts see a high potential to see them surpass $1900 in the next quarter.
On top of that, it’s well known that gold performs well in a harsh economic environment, making gold the perfect passive income generator in the uncertain market conditions of today.
Selling online courses has proven to be a great source of extra cash flow for many, especially when providing high-value content. This process will involve a significant time investment, but once the course is complete you can sit and watch the passive income roll in.
Selling online courses require one essential factor: possessing a niche skill or talent.
Passive income online course ideas for beginners in 2023
- Photoshop educational online courses
- Content writing guide for online courses
- Programming courses
- Copywriting courses
- Marketing courses
- E-book writing courses
- Forex trading courses
Affiliate Marketing Sales
If you think that social media is your strong suit, maybe affiliate marketing is the passive income of choice for you. Affiliate marketing can generate up to six figures a year if you know how to take advantage of your virtual social networks.
There are an endless variety of products you can sell as a third party. Amazon.com offers an easy to access platform you can start with. Simply paste the product links into your social media posts, blog, YouTube channel etc. and watch your earnings start to flow.
Nonetheless, this method requires a high skill level in digital marketing; remember, no marketing skills, no sales, and no passive income.
Home or Land Rental
One passive income strategy which is accessible to a lot of people is home rental. Maybe you have a spare room which doesn’t get used, or even a parking space and you don’t own a car, why not make use of it?
Renting homes and land have become enormously popular in the past few years and has become a sure-fire way of creating a steady flow of additional income.
There is potential to earn more than $100,000 by simply renting houses and apartments. The best part is that it’s a true passive source of income. No effort is required from you once the purchase is complete (especially if you use a letting agent to manage the property on your behalf). Just sit back and enjoy your new passive income.
How Much Can You Earn from Passive Income?
The simple answer: as much as you want!
Start small with something you understand. Don’t take on too much risk at once and build up your passive income sources one after another. The key here is GRS (get rich slow). This is the key to generating long lasting, sustainable passive income sources that can sustain you and your family for generations to come.