Despite having a steady paycheck from a 9 to 5 job, many people out there dream of earning money while sleeping or having sunbaths at the beach. Unfortunately, not many people know the secret to turning their dreams into reality.
The fact that you’re here reading this article is proof that deep down, you also want more freedom, more flexibility, and most importantly, more money. However, the idea of having a constant flow of money into your bank account isn’t just a dream and can be turned into reality by making a passive income investment.
So, without further ado, let’s take a look at what passive income is, along with some of the best passive income investments you can make.
What Is Passive Income?
Before you start looking for the best passive income investments, it is essential for you to understand what passive income really is. If you think of it as a magical money-making formula that would make you rich overnight, it might not work this way.
In simple terms, passive income can be defined as the money that is earned by your possessions without your active participation. This may include profits earned via rental properties, dividends from stock holdings, or similar kinds of income.
The 5 Best Passive Income Investments
Cutting to the chase now, let’s have a look at the five best passive income investments.
Initially, you may think that you cannot use cryptocurrency to earn passive income; however, it is quite possible to earn passive income via crypto. The returns depend on the amount of crypto you have and the method you opt for. Nevertheless, due to the highly volatile nature of cryptocurrency, there is no guarantee that crypto strategies will serve to provide constant streams of cash inflow.
Some common ways to generate passive income investments via crypto payments are as follows:
- Proof-of-Stake (PoS) Staking
- Interest-Bearing Digital Asset Accounts
- Cloud Mining
- Yield Farming
2. Real Estate Rental Income
Undoubtedly, rental properties have been one of the primary passive income sources for a very long time. Many people are reported to invest in real estate to diversify their portfolios with alternative investments and preserve their wealth or capital.
Being a straightforward strategy, it only requires you to provide a place for accommodation to people and receive a fixed amount of rent for it. The perks of having real estate are not just limited to receiving the rental payments, but you will also be able to enjoy the appreciation in the price of the property you own.
3. Affiliate Marketing
As a matter of fact, affiliate marketing is considered to be one of the major sources of passive income. Individuals who consider themselves ‘influencers; on social media platforms can promote any product from a third party and charge money for it. All they would be required to do is make a post about that product and include a link to it on their website or social media account.
Amazon and eBay are some of the famous names in the list of the top affiliate partners. However, it is essential to note that when you’re starting out, you may be required to put in significant time and effort to create quality content that attracts organic traffic.
4. Course Creation
Yet another excellent strategy for generating passive income is to create a course and then sell it on online platforms such as Udemy, Coursera, and SkillShare. If you’re someone with extensive knowledge on a particular topic, creating a course and selling it will definitely make your bank balance rise way up.
If you’re concerned, there isn’t any specific risk involved in the process; however, the only thing you would have to invest in is a tremendous amount of time and effort to create that course.
5. Creating a Blog
If you’re someone who has expertise or interest in sectors like technology, traveling, and marketing, you can benefit in ways that you didn’t even know of. You can transform your passion into creating a blog that can provide you with passive income.
Similar to creating a course, you would have to invest significant time and effort to attract organic traffic and get your blog monetized. Once that is done, you would also be able to use ads and sponsors for some extra cash generation.
The only downside here would be that you would have a lot of competition to deal with, which means that you would have to think out of the box and come up with unique ideas to stand out in the crowd.
When you find the perfect passive income investment for yourself that matches not only your passion but also your lifestyle, it would be a good move not to let that stream of cash get lazy. Another great move would be to reinvest some of the profits back into the business so that you can boost your investments even more.