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How To Build Passive Income
There are many passive income strategies to consider for someone looking to create that extra stream of income.
Maybe you love your 9-5 job, but who doesn’t want extra money? Passive income is being generated when you sleep – It’s one of the reasons that the rich get richer. There are many passive income strategies to consider for someone looking to create that extra stream of income.
Here are some of the most popular methods used these days:
Blog or Youtube Channel: Start creating content on any subject you are passionate about. Then use these channels to generate money from affiliate marketing or sponsorships. Affiliate marketing is a whole different income stream where you get paid when someone uses your affiliate link to signup for a service or purchase a product.
High Yield Savings Account: Online banks might have interest rates that are at least 10x of what your local banks are offering. Lock your money in, sit back and let the interest rack up. Popular banks include Marcus by Goldman Sachs and Ally Bank. Most high yield savings accounts do not have physical locations but that is usually not too big of an obstacle. An alternative to a high yield savings account is a CD. However, CDs require committing your money to a long-term account.
Dividend Yielding Stocks: Some companies pay cash dividends each quarter; find these companies and invest in them. As an alternative to cash dividends, consider DRIP programs in which your dividends are automatically reinvested into their respective stocks, thus compounding gains.
Peer-to-Peer (P2P) Lending: You make money on the interest payments to your loans. Be mindful of who you lend money to by investing in people with excellent credit. For increments as low as $25, you can start generating P2P returns through simple websites such as LendingClub.
Rent A Room On Airbnb: If you have an extra room at home, why not use it to make some money? You also make money on cleaning fees. Keep in mind that Airbnb profits from your listing fees. Moreover, the Airbnb process can be further simplified by delegating house management or automating check-in and check-out processes.
Sell Used Items: Flipping your own products that are in good condition can help turn a mean profit when you buy low and sell high. Maybe you have boxes in the back of your closet that have been left unopened for years. Why not create easy online listings with sites like Etsy, Poshmark, and Amazon?
