Passive Income Ideas
Creative Sources of Passive Income
Part of a great financial freedom strategy is to find legitimate passive income ideas that can be used to supplement income from job earnings. It is important to develop multiple streams of income both to minimize the effects of an unexpected job loss and to increase overall wealth. The multiple streams can come from a combination of active and passive sources.
Passive Income Definition
Passive income is simply an ongoing flow of money that is generated without a person continuing to work for it. That doesn’t mean there is no upfront investment in order to get the ball rolling. On the contrary, most passive income opportunities require either an investment of time, money, or both to get started.
Passive Income Opportunities
Here are a number of passive income ideas. They are not all applicable to everyone’s situation. Rather, they are meant to be a springboard for you to generate ideas that will work for you.
- Do you have a special talent to create something that can be duplicated and sold over and over again? You could write a book, produce a video, or compose a song and set up a method to distribute it that wouldn’t require ongoing work.
- If you have great ideas for iPhone or iPad apps, develop them yourself or hire someone to develop them for you. The market for these is hot now and you will receive ongoing income as long as they continue to be popular.
- There are many ways to make extra cash online. The internet is full of extra income ideas, both active and passive.
- Open a self-service car wash or laundromat. Although the word, “self-service” implies passive income, the only way to make this truly passive is to hire someone to do the ongoing maintenance required.
- Another income strategy that may or may not be so passive is renting out residential or commercial real estate. It may sound easy, but this is a business that does not run itself, so hire a manager if you truly do not want to work at it.
- If you currently own a business or have an idea for a business, consider hiring a manager to run it for you. This may be more feasible for some businesses than others, because it is often the owner that has the necessary drive to make it successful. However, if you can do this, it will free you up to pursue other avenues of income.
- There are several passive income ideas for someone who owns land, depending on the type of land and its location. If it is farm land, you can rent it out to someone else to farm it or you can lease it out for the placement of wind turbines. A vacant lot in a city could be rented for garden plots. Land located near a street or road could be used for advertising billboards
- Sometimes, you can find passive income ideas from by just putting a fresh twist on your normal, everyday life. Have you ever seen a car wrapped with advertising? Someone is getting paid just to drive it on their normal errands. That seems about as passive as you can get. Others get paid just to wear t-shirts with advertising.
- Passive investment income may be a little boring, but certainly can pay off well over the long run. You can gradually save your money in relatively low risk investments that regularly pay interest or dividends. Over time, this can provide a consistent income for which you need to do very little to maintain.
Allow yourself to be creative in brainstorming passive income ideas that will work for you. Remember, each alternative may not necessarily create a large flow of income. However, by putting together multiple streams of income, you will increase your ongoing financial security and, ultimately, have a better shot at financial freedom.
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