Different types of passive income sources to increase financial stability
Having multiple passive incomes in this era of uncertainty will aid your financial strength. With the pandemic majorly hitting the economy, we understood the volatility of our financial resources. In order to ensure our future security as well as reach our financial goals passive earning plays a vital role without making you work for every penny you earn. Invest your time and money upfront and then see money coming to you even when you sleep. Here is a list of different types of passive income streams that will grow your wealth:
Types of passive income sources
Passive income can have multiple variations depending on the role you choose. For example, in real estate, you can make passive earning by having a rental property or you can invest in REITs. Both of them will earn you money but the responsibility of each of them varies majorly. It depends on the effort, time and money invested by an individual.
High-time investment passive income
These are types of passive income sources that require low financial investment but a good amount of time to grow and show significant results. These are generally prefered by beginners in their 20’s who wants to start a side hustle along with their studies or jobs.
1. App building
Building an app requires an upfront investment of time and utility of knowledge. With your creativity, you can build an app that could be anything, such as, a game, fitness tracker, to-do list, or anything useful to the public. Once you have created and published the app, the user can download it and you will earn from that.
If your app gets popularity, you generate a huge profit from it. Make sure to keep your app updated with new features to maintain relevancy.
2. Affiliate Marketing
In affiliate marketing, you can promote an affiliate product or service via your personal platform. If your audience makes a purchase using the link provided on your website, you will get a commission on that. Instagram and TikTok being the most popular platform along with YouTube, Facebook, personal blog websites, etc.
To do so you have to gather a mass of authentic audience first. This might take a while but the return of affiliate marketing can range from Rs 1000/- to 10,000/- or more depending on the product.
Publishing a book online is mainstream today. Self-publishing is easy but always look out for the quality. Make sure your writing is mouthwatering. Publish your eBook on any publishing platform. You might want to opt for Amazon KDP, other platforms are Barnes & Noble Press, Google Play Books, iBooks, Kono Writing Life, etc. Once your eBook is uploaded, decide the price of your book. The royalty rates will vary depending on various platforms. After and before publishing make sure you are branding your book well enough to have a good amount of sale.
4. Online Course
There are different online platforms where you can publish your video courses on any subject or skill. This is an amazing opportunity to showcase your skill set. There are many platforms to show any skillset you have like Coursera, Udemy, SkillShare, etc.
5. Selling stock photos
Stock photo websites are those platform where photographers upload and sell their high-quality photos. Every website, ads, promotions require a photo and if you love photography, this is an amazing opportunity to make some bucks. There are multiple websites like PixaBay, Pexels, Shutterstock, etc. where you can upload your photos and get paid.
6. Royalties on music
You also license your music just like stock photos and earn royalties over it. You will get the royalty when you will sell your music to someone who will buy it for use. Try it out anyway, even if you think your music is not perfect. You should own the rights to the track before submitting. In the case of co-authors, make sure you are all on the same page.
7. Blogging and vlogging
Starting as a hobby, blogging can turn into ana amazing income source. Depending on the effort and time you can give, it can also turn into a full-time job. Start your blogging journey on any topic like sports, beauty, lifestyle, education, etc. on free blogging platforms like WordPress, Wix, etc. You can also opt for the paid packages for better service. You can start vlogging with your smartphone and upload videos on youtube, Instagram, Facebook, etc.
This will take some time to capture the right audience and monetise your site. Blogging can fetch you from 1000/- to 10,000/- or more depending on the performance of your blog.
8. Online tutoring
You can start one-on-one or group coaching from anywhere to anyone in the world. Teaching globally not only helps you to earn more but also gives you exposure and increases your network. It will take a few hours out of your day a teach online. All you is need is a laptop with a webcam or even a smartphone will work. This is also a better opportunity for the students to have a learning experience over the traditional coaching methods.
High-financial investment passive income
This is where you need to invest your money to get a valuable return. This might sound a little intimidating but you may start investing with as low as Rs 1000/-.
1. Dividend Stocks
Investing in dividend stocks will get you a payment on a regular basis from the company you invested in. Owning a stock will get dividends that are paid quarterly basis out of the company’s profit. Dividends are paid per share of stocks, so the more shares you own higher will be the payout.
Before investing in stocks you need to do thorough research to ensure that you are into the right stocks. ETSs are a good option if you want to opt-out the extra research.
2. CD ladder
CD ladders are a saving strategy that helps you to spread your investment equally across multiple certificates of deposit. This strategy helps you to earn a high rate of interest in long-term CDs. Among saving accounts CDs give a high-interest rate with the condition of locking your account for a period of time. Here you get the flexibility to choose how you want to split up your investment.
When the interest rates go up, you will have the cash to invest in other CDs. The whole process depends on your risk handling capacity.
3. Real Estate
In real estate, you can invest to buy a property and then set it for rents, commercial or industrial use. You also invest in large real estates through REITs and crowdfunding. In that way, you do not have to buy the whole property but you get to be a part of the same. There is a profitable income with real estate as the value of property keeps on increasing with time.
4. Peer to peer lending
In peer to peer lending, you can lend out your money to a borrower who might not be eligible for traditional loans. People with a bad credit score or low mortgage value opt for p2p lending. You can earn a good rate of interest via p2p lending within a short period of time. Here you just lend out your money and get back the principal amount as well as interest on that loan. This type of passive income consume a low amount of time as well as gives a good return.
5. Listing on Airbnb
If you have space in your home, you can list it out for staycation. Multiple families are doing so to give visitors and traveller a home-like experience on their vacation. Moreover, people are preferring this over hotels and ended up staying for more days than usual. This type of passive income will generate a good amount of cash along with the pleasurable experience of hosting guests.
The list can go on and in fact, there are so many types of passive income that completely depends on how you manage and operate them. Not every passive income turns into a successful earning path, some of them may lead to loss of your finance and time. So, be measurable and plan accordingly before starting any types of passive earning. Overall, it is beneficial to increase your earning and grow your wealth.