It is the goal of every individual to be financially independent and to be able to meet more of their needs. The problem, however, is that many are not willing to do what is required and when they are, they may lack the ability to translate it into action.
A passive income is one way to relieve the stress on your salary or monthly income. Passive income is the holy grail of income generation, allowing you to earn money on autopilot. According to Wikipedia “passive income is revenue resulting from cash flow received on a regular basis, requiring minimal to no effort by the recipient to maintain it”. It is the opposite of an active income which refers to what you earn for services which includes your job, salary, tips etc.
Why Passive Income?
Having a passive income is a great way to feel financially secure. It can help you save a lot of money, give you extra cash to meet your needs and can speed up your journey to financial independence. Finally, it also gives you a good financial score.
What you need to do?
If you’re interested in having a passive income then here’s what you should do:
Firstly, you need to be determined. This is what will get you the goal that you deserve. It is not an easy journey. Secondly, you need to work hard, ignore offers that promise you wealth in a short time and without any effort. Thirdly, you need patience. It will take time for the income to come pouring in. Next, you need to discover your niche (that is, find the area you want to make your passive earnings from). You must be ready to invest your time, money and energy into this! All passive income starts with active work.
There are a variety of things you can earn passive income from:
- By investing: This is one of the most reliable ways to earn passive income. There are a plethora ways to invest. You can invest in real estate; buy, sell, own and rent them out. You could also invest in the stock exchange, forex. Additionally, you can invest in existing business, or an upcoming or new business idea.
- Rentals: You can rent out your unutilized properties, your house for instance, (through Airbnb and HomeAway), or your car (through Flightcar, Turo) or even your garage space (via Craigslist and parkingspotter ), Etc. These are all great ways to earn some money.
- Writing is another away to earn a passive income. You can own a blog either by creating a new one or by buying an already existing one. However to earn from it you will have to monetize it. You can also write eBooks. If you are an expert in certain areas, you can write about them in an eBook; the better the eBook the more money you make. The good thing about this is that it keeps coming in as residual income. You can keep making money from it even for years to come.
- Creating an audiobook. Given the growth in technology one can listen or stream an audio book form any part of the world.
Other ways to earn a passive income includes by building an app, affiliate marketing or outsourcing your business.
A passive income is a sure bet to staying financially strong. It is a must have for every person who look forward to being financially independent. It requires a lot of dedication but the ultimate truth is that it is worth it.