Not quite sure what passive income means? It basically means you are creating consistent cash flow with minimal time and energy. Your full-time job is not passive income because you have to put in the hours to get your paycheck. A second job or driving for Uber is also not considered passive income. In order for something to qualify as passive income, it needs to gain you money without you losing time.
Getting paid for doing minimal work? Sign us up! The CGS Team is sharing why you need passive income in your life, as well as some ideas to help you achieve it. One thing to know about passive income is that there is usually an initial investment. Whether that investment be in time, money, or sweat, it’s usually a prerequisite for consistent passive income.
Why You Need Passive Income
Your full-time job is great, and there’s no denying you need that income to survive, however if you want to get ahead faster, passive income is a must. Essentially “earning money while you sleep”, passive income allows you to bring in more money while you can focus on other things. Having passive income makes it the perfect side gig. There are plenty of bloggers, business owners, and authors who have made a living off of their passive income. While that may be your ultimate goal, even bringing in a couple hundred extra dollars a month can change your life.
Ideas to Earn Passive Income
Start a blog – Michelle, blogger behind Making Sense of Cents, earned $136,829 from her blog. That amount was just her earning for October! If you don’t think a blog can turn into extra income, think again. While it may start slow, your blog can gain traction over time. With paid sponsorships, affiliate advertising, and partner promotions, your blog can generate you money 24/7. Read How to Start a Money-Making Blog to learn how to get your blog started.
Invest in stocks – Thanks to inflation, your money isn’t doing you much favors by sitting in your regular checking or savings account. To really make your dollar count, and earn a nice return, investing in stocks is a necessity. Don’t let the thought of stocks scare you. There are plenty of services that make it easy for you to invest a little at a time. We highly recommend Betterment.
Rent a room – While the primary investment here is space, you can earn cash just by renting out a room. If you don’t want a full-time roomie, consider renting your room through AirBnB. If you live in a popular city, people may be looking for rooms. You can set your price (and end up making a month’s worth of rent in the process). Don’t put yourself in a bind, especially if you need the money. It will make a difference.
Create and sell digital products – Teach an online course, create an eBook, sell a recording. Any product that can be accessed online is considered a “digital” product, and it can be sold. If you are knowledgeable on a specific subject, build up your following and people will purchase. The initial investment is the greatest, but once the product is created, it can make you money for years and years.
One of your goals for the new year should be to bring in passive income. Any of the ideas above will work, or you can find your own ideas. Make sure it’s something you enjoy doing, that way you’ll be excited to create and sell. Do you currently have any form of passive income? If so, what is it? Are you considering passive income for the new year? Share your thoughts, comments and questions by posting a reply comment below.