Create Sources of Passive Income
Create Sources of Passive Income
Having multiple streams of passive income will enable you to live the way you like without drudgery of going to work every morning for someone else. However, there is no free ride getting there.
The idea is simple. You make an effort once and you get paid to the infinitum based on that effort until that stream of income dries up. You don’t worry about it because you have multiple streams so you will always be profitable.
There are 3 types of incomes – earned income, passive income and portfolio income. Earned income is one where many people depend on, that is getting a paycheck from the employer as long as they get to continue to work for this employer. The danger of this is that if they lose their jobs they lose their only income stream.
This is one of the reasons I see so much stress in the eyes of many people and you hardly see the natural smile on their face. They live nervous and worried about life, people and situations. Passive income may not your ticket to paradise, in the beginning at least, but it is a better way to make money.
The important question now is how to you create multiple stream of passive income?
There are many ways that you can create passive income, some may require some monetary investment and some may require the investment of time and efforts. Some of the ways presented here are free and easy to do.
This evens out the possibility for you to get something for nothing. I am being honest with you, and if someone tells you that you will get rich tomorrow, they probably want to rip you off.
It is better to build the house, than to rent it. You may not be able to build a house, but anybody can create passive income despite of the circumstances. There is not one or two ways to do it but many. Some people will have to try harder than others, but if you believe you can do it, and you are willing to pay the price, then you will do it.
Here are just a few ideas:
1. Write a book.
Writing can make you money. Focus on something that you know a lot about. It could be related to your job, life experience, school work, hobby, etc.
2. Sell photographs and videos.
This can be done over the Internet. First you have to find your target market – who you are going to sell the images or videos to. Focus on something specific – are you taking pictures of landscapes and buildings? Are you going to sell stock photography? Do you want to gather visual information for travel agencies? You may discover soon how profitable this business can be.
3. Build a few good websites and sell advertising space.
If you can create websites rich in content and attract many visitors per day, some advertisers will want to place ads on your site. What impresses more the advertisers is websites rich in targeted specialized content and high quantities of real daily visitors.
4. Become an affiliate and sell other people products.
Here you don’t have to create anything. Some individuals have had bad experiences with this industry lately. They claim there is too much competition, that it is expensive and the revenue potential is low. All of this is relative. There is money to be made in affiliate marketing but you have to approach it like a business and not just like a hobby.
5. Vendor machines.
The idea here is that if you can set up a few of these machines on strategic places, you would need to repackage them once per week and you will be making money while you are doing something else. People get into the store, buy the merchandise and then you go around on the weekends, pick up the money and refill the machines.
That’s the basic idea. If on average every machine generates $300 per week and you have 5 machines you would be making around $6,000 per month from this business alone. I think that it is pretty much a nice opportunity to make passive income.
6. Parking lots.
This works better for people who live in or near big cities. Some people buy land as an investment and instead of building a house or an apartment building they use the land as a parking place. They collect a fee for cars to park there. This business can be quiet profitable. You don’t have to deal with tenants, there are less legal restrains and you will have a nice cash flow.
7. Start a coin laundry and cafeteria business.
Trust me, this business is profitable. I have combined here two businesses in one. This is passive income because the profits should allow you to hire a couple of employees to take care of everything. The drawback is that it requires a considerably large investment.
8. Buy wholesale and sell on retail stores.
At the time I write this you can still get merchandise from China and other countries for pennies on the dollar. You just need a few contacts and good wholesalers. You don’t even need to sell the products yourself. Have you heard about the dropshipping business.
This a business in which you post the description of the items you are selling on online stores, your own website and online auction websites. Then when someone buys the products you forward/dropship the order to the distributor who ship the item. You get a portion of the profits.
There are other methods to earn passive and recurring income, but I don’t have time to share them all here. You probably imagine already that one of the biggest benefits of setting up passive streams of income is that you can be working on something else while your income streams generate money for you. This way you can multiply your efforts and ultimately your profits.
It works as follows. You set up your first stream of income. Once it is ready and making money for you, then you just have to spend a few hours per week on it to keep it working smoothly. The rest of the time you use it to set up another stream of income.
Once you have several (10 – 15 or more) you can retire and work a few hours each day to make sure that everything is working ok. This will make you happy. You can be free and work however you want and whenever you want. You won’t need many of these income streams to be financially free. The sky is the limit and there are many opportunities waiting for you . . .