10 Ways to Generate Passive Income
In this age of uncertainity of jobs, it is always good to have a passive income. Learn the ways to generate passive income for you and your family. Take a look at the best ways to create passive income. These would include working as an independent insurance agent, time deposits, selling adspace, investing in stock market, creating online content, freelance writing, etc.
Passive income, what is it? It is an income that you will receive regularly by putting in little efforts. Passive income is categorized into three types, namely:
- Residual income
- Leveraged income
- Active leveraged income
Residual income: It is a type of passive income that one gets for a work done one time.
Leveraged income: This type of passive income is leveraging the work of someone else to create income for you.
Active leveraged income: A passive income where your direct participation and the involvement of other people plays a vital role.
Having defined the various types of passive income, let us take a look at the top 10 ways to generate passive income to you for your lifetime.
1. An insurance agent:
It is not necessary for you to leave your 9 to 5 job to become an insurance agent. When you become an insurance agent you get commissions. You can get a passive income as long as you want by becoming an insurance agent.
2. Time deposits:
I recently saw a bank advertisement that said “Let your first spending be savings.” Isn’t that nice? Make sure you save a part of your income and put them in time deposits. The holding period varies between 30 days to 5 years. These time deposits will give you higher rate of interests when compared with the normal savings account.
3. Creating a blog or website:
It is not necessary to know programming to create a blog or website. You can use free tools like blogger or officeliveto create a professional looking blog or website. Once you are done creating your blog or website, put some useful and informative content; apply for Google AdSense. If getting Google AdSense is tough, you may go in for other alternatives like AdBrite, Bitvertiser, etc.
4. Producing a video:
Are you good at cooking or giving inspiring speeches or a yoga instructor or anything that you are good at? Prepare a video and sell it.
5. Stock photography:
Are you good at taking photographs? Why not make your passion generate passive income for you? Take pictures and sell them through stock photography websites. You will earn royalty whenever someone uses your image.
6. EBook selling:
This is very similar to producing a video. You may write an eBook about anything that you are comfortable with. It could be a collection of healthy or traditional recipes, how to make money online, tips for getting a job, etc. You could sell your eBook through Amazon, Digitalbookpublishers, etc.
Do you have spare time and wish to do something useful? You can do something useful and earn a passive income. You may take cookery classes, give motivational and inspiring speeches, teach yoga, etc.
8. Sell ad space:
Do you have a blog or website with regular traffic? You can sell ad space in your blog and can generate passive income. This is possible only if there is a good amount of traffic to your blog or website.
9. Invest in Stock Market:
Investing in stock market will generate passive income for sure. Investing in stock markets is different from trading in stock markets. The process of investing involves staying invested for longer period of time in reputed companies. You may get passive income in the form of dividends as well from an increase in stock prices.
10. Creating online content:
This is good for someone who is passionate about writing or is able to create interesting information. There are a lot of online writing websites for you to make passive income. These are residual income as once these articles are written, they will fetch you money forever.
Started thinking in what you are good at so you can generate passive income…that’s great. All the best to you!