It is typical for an ordinary working individual to want extra income. Who would not want to earn extra money to spend or save for the future? Even if you may have all the abilities to handle more than one job, sometimes you just don’t have the time. That is where passive income comes in handy. With passive income, you literally earn extra income without devoting too much time or attention to it, and the sources of passive income are numerous.
What are some examples of passive income?
- Real Estate or Rentals
One of the possible sources of passive income is through real estate or rentals. If you have a spare room or a property that you do not use, you can rent it out and earn extra money. It only requires occasional maintenance and probably a little renovation at the start, but as soon as someone rents the space, you can be assured of earning extra money monthly.
- Dividend Stocks
Many financial experts say that one of the fastest ways to earn extra income is investing on dividend stocks. Investing on dividend stocks involves investing your money on stocks that consistently pay out dividends. You may not get rich with dividend investing, but it is a sure source of extra income. It also carries less risk since you do not need to worry about the stock price going down since you are already earning even if you do not sell the stocks itself.
- Creating Software
If you have the technical know-how to create computer software, you can make passive income from it. You can create how-to or instructional videos. After initial investment of time and money, you will get a flow of income without any required maintenance.
- Online Sources
Affiliate programs are abundant. If you own a website, all that the business sites require of you is to put links to their site. They are actually getting help from you because you advertise their site and in return, you get paid. After creating your site and putting a link, money will arrive. Some of the sites are pay per click. This means that you get paid as soon as someone clicks the ad or link in your site regardless of whether they buy something or not from the online merchant. The most popular pay per click site perhaps is Google Adsense. Some websites that use pay per click to advertise are not all business sites that sell items or services. Some are information sites. Pay per click sites become a source of income for you if your website requires little maintenance or if you hired someone for its maintenance.
- Limited Partnership
You can enter a business through limited partnership. This limited partnership entitles you to receive a part of the profit of the business without taking too much of your time and attention. Most limited partnerships require only your initial investment.
Most of us want to have a comfortable life and a secure future. Due to the financial crisis and to inflation, achieving financial freedom seems much harder these days. A lot of times, having a day job, no matter how secure it is, is not an assurance of a comfortable life. Bills, expenses, and needs pile up over time. The possible solution to this is to find an additional source of income. If you are working full-time, finding another job may not be possible. Passive income is a good source of extra income because it will not take much of your spare time. With passive income, you can dream away and still have the bucks come in continuously.
Have you tried one of these passive income sources? Were you successful?