Ever thought of how to earn extra income with less investment and effort?
There is no denying that many of us are exploring new ways to earn more money. While having a job will help you do just that, a 9 to 5 takes too much of your time and effort.
Fortunately, there are so many ways by which you can earn passive income with little investment. Plus, they are not too tedious and time-consuming. Even if you are a beginner, you can use these passive income ideas and strategies to easily earn more money.
In this post, we are going to discuss some great ideas that will help you make more money and save your precious time.
That being said, let us discuss 5 great Passive Income Ideas, Strategies, and Sources for beginners – With Little Money! Let’s start by defining passive income.
What Is PASSIVE INCOME?
To understand passive income better, let us talk about active income first.
Active Income is the income that most working professionals make. This means, that it is the income we make by going to work every day. In other words, it is the income you make in exchange for a service.
On the contrary, Passive income is the income you can make with little work. Very little or no active involvement is required to keep passive income coming.
However, it is also to be noted that most passive income ideas and strategies do require effort and hard work. But, the efforts pay off well after you put all your hard work in the upfront. With the advent of the internet and the ease it provides, anyone with little knowledge of how things work online can generate passive income easily with little investment.
Passive income gives you more time to spend on other things in your life. Plus, it gives you a sense of freedom and security. Moreover, if your passive income can cover most of your expenses, it allows you to enjoy your time and the things of your choice and allows a flexible schedule as well.
But remember this: Passive income is not entirely that easy. With so many people using the internet nowadays, the online competition is stiff and stern. Also, it takes hard work, time, motivation, and patience to build. But if you do all the things correctly, all your time and hard work will pay off.
5 SMART PASSIVE INCOME IDEAS
RUN AN ONLINE BLOG
If you are an internet user, chances are solid that you know what a blog is. A blog is one of the most popular offerings of the web. And creating and running an online blog is also a very popular (and one of the best) strategy to earn passive income online.
A blog is nothing but a sort of website where you can present your content or blog posts in reverse chronological order. A blog can be created on almost any topic of your interest and on any niche. With the number of online users and content creators increasing day by day, blogging is also witnessing a continuous rise in both its consumption and creation and has now become a profitable online profession.
You can find blogs related to almost every topic of your choice. There are food blogs, lifestyle blogs, make-up and beauty blogs, tech blogs, and even digital blogs like ours that you are reading right now! They are informative, educative, entertaining, and provides value to the readers.
And guess what? By creating and running your own blog, you can earn a great amount of revenue. However, this revenue is dependent on the quality of your blog content, its viewership, your skills, and motivation.
To begin with, you need to design your blog. Ask yourself: What are my interests? What am I passionate about? This will help you find the best genre for your blog. But remember, creating a blog requires effort. It’s not entirely too easy and will take a lot of time and effort in the setup phase.
But once you are done with the initial stage of building a blog, it can prove to be an amazing strategy to earn passive income online. Make sure you are consistent with your blog posts and are providing value to your readers. You can promote your blog on your social media handles as well.
This will help you give a kick start to your blog and increase awareness and traffic. Once you are done creating your blog, you can then start monetizing your blog. There are a lot of methods that you can pick to start earning passive income from blogging. One of the most popular and widely used methods is by using Ad networks.
These ad networks help you monetize your blog by showing advertisements based on the context of your blog article and user interest. But make sure that your blog is getting enough traffic before you start to monetize your blog.
However, if you are a beginner and getting less than 300 views a day on your blog, you can also try other ad networks like PopAds and Revenue Hits and others which have zero traffic requirement. You can also sell e-books on your blog, post some paid or sponsored reviews (if your blog is getting enough traffic), and even use direct advertisements on your blog.
You can also generate passive income from your blog by using affiliate marketing and selling your own products. The options are many. Choose what suits you and your skills the best!
INVEST IN DIVIDEND-PAYING STOCKS
Yeah, it might sound a little bit confusing. Let us start by talking about what exactly dividend-paying stocks are.
Dividends are money or revenue that a company pays to its shareholders. As is obvious by the name, a shareholder is any person who legally holds a share in a company. A shareholder can either be an individual or an institution who is the legal owner of one or more shares of the total share capital of the company.
Now, what do they have to do with passive income? Hear me out. When a person invests in a dividend-paying stock, they are, in a certain way, buying a part or share of that company. Now, when the company grows and expands, it may generate extra cash that it doesn’t necessarily want to re-invest.
So, what the company does is return some of it in the form of dividends to its shareholders. And if you decide to invest in these dividend-paying stocks, you will receive a portion of the payment in cash or in shares.
Thus, we can conclude that Dividend-paying shares or stocks can be an excellent strategy for generating passive income as it is not something that you need to do full time. However, it is always advised to research well on the types of these shares, the best shares and companies to invest, the best shares you can buy with your proposed investment and for the specified time frame, and much more.
CREATE AND SELL YOUR OWN ONLINE COURSE
Even if you are a working professional, chances are you have a special skill or a certain knowledge that you would like to share with the world. And the best part is you can use these hard-earned skills to generate income too! Yes, by creating an online course, you can teach anything from Business Communication to Music. And in return, you can earn easy money.
Nowadays, online courses are very popular. More and more students and even many working professionals are taking up online courses to enhance their knowledge and boost their CVs. This gives anyone with skills and knowledge a great opportunity to create and sell courses online.
You can work on crafting your online course whenever you get time. And the best part about this strategy is that you only need to do it once. Once you have created your online course, you will continue to get paid every time someone takes your online course.
INVEST IN CROWDFUNDED REAL ESTATE
The meaning of Crowdfunded Real Estate is in its name. It is crowdfunding for real estate. It works the same way as many other crowdfunding ventures. Here, investors pool their money in order to fund a real estate project or to contribute some amount of capital towards a real estate deal.
This allows people to invest their money in real estate transactions at a fraction of what fully owned real estate would cost them. It also offers a low entry barrier. The process of real estate crowdfunding is generally conducted on an online platform. A lot of these platforms let you start with as little as $500.
It also allows for the development of a mutually beneficial relationship between the real estate company and the investor. Crowdfunding gives real estate companies easy access to huge capital that can fund a project that many of these companies would otherwise never be able to raise. In return, the investors become shareholders in that particular property or the company.
START AN ONLINE DROPSHIPPING BUSINESS
Dropshipping Business is a new retail business model. In Dropshipping, a store or a seller does not keep or store the products they are selling. Here, the seller doesn’t own any inventory and doesn’t handle any of the products directly.
Instead, the seller purchases the product from a third party-usually a manufacturer or a wholesaler, and after doing so, ships that product directly to the customer or the buyer.
It is a really great strategy to earn passive income with little investment. It lets you become an entrepreneur and helps you start an online business. You will be able to sell products without actually stocking the items. This will eliminate any inventory, operational, and storage-related costs.
You can sell a variety of items- just like a real offline store. From stationery to makeup and even clothing, you can sell a lot of products online with great ease with the help of dropshipping. While a dropshipping business doesn’t take a lot of money to launch, it will require you to put in a lot of hard work and effort to make it successful at the initial stage of the business.
A popular online platform that will help you build your Dropshipping business is Shopify. Another good example is GlowRoad. Most of these platforms are reseller platforms. They provide a great opportunity for people to start their own online business.
By signing up on these platforms as a “reseller”, you can choose the items of your choice that you want to sell and then you can submit your interest to the supplier of the item. Since there is no need to pre-purchase the products you sell, dropshipping allows you to offer a huge variety of products to your potential customers.
Once your request is reviewed by the supplier, you are then required to start promoting these items or products so that people can actually buy these products. You can do so by sharing the products on your social media accounts or in your networks of friends, family, and co-workers.
Passive income is an easy and efficient way for you to earn some extra income and lets you have multiple streams of income. It helps you to earn more cash even as you pursue your main job. Thus, it gives you a certain sense of security.
There are so many ideas and strategies like the ones we discussed above that you can use to get that extra money coming in. And, If your passive income venture becomes extremely successful, you can even start pursuing it full time!
But, don’t forget that even though the concept of passive income is appealing, it is not that easy. Many of these strategies require you to work hard and put a lot of effort. However, the efforts definitely pay off well – provided you are focused and motivated. These above are some of the best ways, you can earn extra money with great ease in a very efficient and professional manner.
So, what do you think about our list of passive income ideas and sources? Comment down below and share some of your own ideas that we can use to generate passive income. We’d love to hear from you!