How to create Passive Income
Many people love the appeal of passive income. Creating a steady flow of money, you can depend on can take a huge financial burden off your shoulders, giving you more time to focus on your projects or desired careers paths with more confidence. Not only does passive income give you additional financial security it is also a great way to fund side projects or have extra cash while still maintaining your career. The main struggle most find is getting started and finding the right opportunities. Here, we’ll discuss possible ways you can create passive income and give yourself more financial security.
Invest in Stocks
Stocks can seem intimidating if you’ve never ventured into the stock market. However, if you have the time to study and understand the intricacies of investing, stocks can be an excellent way to create extra money on the side. There are many different ways to invest in the stock market, and you don’t need to be rich to get started. Your 401K is a good place to start, and there are also apps such as Robinhood and Public, which allow you to explore the stock market and compare stocks all from the same app.
If you have some extra money lying around, consider peer-to-peer or P2P lending. In P2P lending, you lend money to small businesses and receive a 5% to 6% return on these loans. Some websites will help you sign up and make the process easy, such as Peerform or Upstart.
Do you have an audience on social media? You could try affiliate marketing! Affiliate marketing involves no initial investment and works by partnering with a company and putting a personalized link for your followers to buy products from them. If people use your link, you will earn commission for any sales made.
Sell digital products
For those with a knack for the arts and a little bit of extra time, selling your art digitally online can be an excellent way to profit off your skills. Many artists will sell their photography and digital artwork templates on Etsy or Stock image websites and allow people to buy them for their personal uses. People are always looking for stock images or templates for their home decor, businesses, and websites. All you need to do is spend some time creating something and put the downloadable files up for sale, then cash in with every download.
Cashback rewards cards and websites
Cashback is a fantastic way to create passive income by simply spending money. There are plenty of credit cards that give cash back rewards for shopping at grocery stores and gas stations, something you likely already do every day. Some credit card companies will ever offer to match your cashback amount at the end of the year. You can also earn cashback from online shopping with cashback websites that’ll give you a small portion of your money back for every purchase made online with websites such as Rakuten, Swagbucks, or TopCashback.
Creating successful passive income is a slow and steady process. While you won’t be rich overnight, it’s an excellent way to secure your future and give yourself a little more cash flow every month and add to your financial security or any side hustles that may need funding.