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You are wasting your prime years if you don't spend your free time building extra wealth for retirement!
The majority of us only ever fantasize about making money when we sleep.
In reality, we work a 9–5 job selling our time and efforts to raise the financial status of someone else and then wonder why our bank accounts look gloomy.
You have to invest your extra time to earn some extra cash!
Gone are the days when you follow a budget, get a secured credit card, maintain a good credit score, and be happy with it.
To avoid suffering emotionally and financially (due to global inflation), it only makes sense to look for ways to increase your income.
You call it extra money; we call it passive income!
Ever heard of it? Want to earn it? Need to know more about it? We Got You!
Passive Income: The World Of Extra Money!
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Extra Money = Limitless Freedom = More Comfort!
What more do you aspire to have in your life? Of course, all of the above. :p
In simple words, a passive income can be termed as:
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An income that doesn’t require ‘active effort’ to continue making it! |
Of course, it requires your time and consideration, but it isn’t like your multiple income streams that demand constant effort and concentration.
Here are some basic examples of passive income to understand the concept:
- You are fluent in a foreign language, so you made a course about it on an online education portal. That’s your passive income!
You made an effort once to earn a fruit for a long time!
Similarly,
- You are a pro in illustrations, so you made a tutorial and put it on YouTube. It went viral, and you started a channel from it.
Of course, you might update the video or make more content to continue the course. But, it’s not like you must constantly work on that first video.
Got the idea? You sure do! Hehe. :)
Passive Income: A Detailed Concept
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Any money made in a way that doesn't involve a lot of effort is considered passive income.
We’re not implying it’s like buying a property, doing absolutely nothing, and waiting for the price to increase.
However, it’s precisely similar. Confused? Let us explain!
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Passive income puts you on the right path to financial freedom since it is money you make with little effort! |
In fact, you might even see several types of passive income, including:
1. Purchase
The passive income you make after some basic investments is ‘purchase.’ For instance, you can buy stocks, rental properties, or bonds.
You purchased something to make money!
2. Produce
The passive income you make after creating something that can help you earn money. It’s more like a one-time thing or one thing at a time.
For instance, you can create a makeup tutorial, a study course, etc.
3. Partner
As the name suggests, it is the passive income you make by investing in an existing business.
You can invest your money in production for continuous profits.
When we talk about passive income, you might confuse the term with active income. However, these two aren’t the same but exactly opposite.
Let’s watch a simple video to understand the difference between passive and active income.
Passive Vs. Active Income
How Do You Earn Passive Income?
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According to Wikipedia, passive income becomes progressive income when you put a little effort into expanding and growing the income.
Of course, it's not like lying on a beach and still making money; rather, it's more like using the money once to buy fruit you can eat for the rest of your life.
Let’s find out how you can generate passive income with little to no funds:
5 Passive Income Ideas 2022 (With No Money)
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Not everyone has some finances to spare to buy property or stocks. So here are some ideas to generate a passive income that requires almost zero money:
1. Become An Influencer!
We live in a digital world where people prefer to look online for solutions to their concerns.
Need ideas for thrift shopping? Look it up! Need affordable dupes to high-end brands? Look it up!
Therefore, if you're at a loss for how to start your passive income, start online offering your expertise in fashion, skincare, or anything else related!
You never know, you might go viral, and brands will start sending you PRs.
2. Create An EBook!
Making a digital product that you can offer to numerous customers without actually delivering anything in the mail is a great method to generate passive money.
Writing a book, novel, or sci-fiction is by no means a typical passive task, but once the initial effort is made, you can continue selling it to expand your income.
3. Set Up A Course!
If you have expert knowledge about something which you believe can make you a successful instructor, create a course about it!
Make a basic set of audio or video files to share your expertise with others by considering what you can teach.
You can use several platforms to start the course:
- Online Personal Blog/Website
- YouTube
- Udemy
You can also find other portals that allow online registration services to start your course. But be sure to finish whatever you start.
You can choose different series like
- Find how to Increase your financial knowledge!
- Learn how to code and program like a pro!
- My personal experience on increasing bad credit score
Or if you want to make it one or two video series, here are some ideas:
- How to check your credit score in Canada?
- Beginner makeup class to master a flawless finish!
- How to rock celebrity fashion with thrift shopping?
The options are endless! All you have to do is start and take the first step to build wealth.
4. Lend Your Things!
If you don’t have any particular skill which you can share with your online audience.
Don’t worry! You can still start your passive income journey.
- Own a printer? Start renting it out or offering locals the option to utilize it for a small price.
- Have a bicycle? Rent it out for two or three hours each day.
However, start by lending things that you don’t use much so you can increase the renting time in the future once the news is spread around.
Bonus: Click to read an easy-to-follow guide to find ways you can save money without actually changing your lifestyle.
5. Affiliate Marketing
Modern solutions require modem problems!
If you want to keep building your wealth, you have to adopt modern ways; one of them is affiliate marketing.
Before you begin, research and compare the top affiliate marketing initiatives.
The most economical approach to earn affiliate commissions without investing in advertising is usually through blogging.
Here watch a video by John Crestani to learn about affiliate marketing:
3 Best Passive Income Ideas (With Money)
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The goal with passive income should be making money and thinking of ways to keep generating even without much effort.
Here are some basic yet top-selling ideas by finance experts:
1. Rental
You can decide to buy a brand-new home and then rent it out, or if your house has extra space, you can rent out a spare room.
Or, if you have sufficient finances, you can start building houses and then selling them at good prices. (this requires more effort!)
2. Stocks
Your 9-5 job can help you create a side hustle to generate passive income.
Companies provide cash dividend payments every quarter from their earnings, and all you have to do to get them is buy their stock.
Of course, you have to start with investing money, but it’s a good source of passive income in the long run.
3. Dropshipping Store
Launching an internet business has never been simpler!
When you employ a drop shipping store, the vendor will keep the goods in storage and send them on your behalf to clients.
Yes, you have to create a store, find sellers, and reach the target audience, but the money you invest will be worth it in the end.
You can learn to do the work or hire a professional to generate money for you.
Let’s watch 7 ideas to generate passive income with low investment before ending the guide:
Final Thoughts
You can start generating passive income with zero money, but of course, the opportunities you can create with investments are unmatched!
Don’t worry. We have discussed both in our guide, so give it a read and find the best idea for you.
Happy Earning!
