Passive Income is an income in which you have to put in a little or no effort. It is a concept that is becoming popular and a lot of people are looking for various ways to generate passive income. With this, you can make money regularly over a short period of time by putting in a lot of concentrated effort. However, the interesting part is that through several means you might be equipped to generate passive income. Here is the list of 10 different ideas to generate passive income. Scroll down to check it out:
1. Mutual Funds
Mutual funds investment is one of the best ways to generate passive income. Based on your risk appetite and timeframe, you can choose mutual funds. This means you not only get to choose how much risk you are willing to take, but you also get to create wealth passively. If you have a Wealth Coach to guide you, you can build the Perfect Portfolio for your financial goals.
2. Rental Income
Owning property, storage space, or land can be an amazing way of generating passive income. There are a lot of people who become landlords, which means you work hard to save whatever money is necessary to pay for your first rental property. In today’s economic situation, this is a difficult move. Moreover, there is very little liquidity in real estate. It is not one of the easiest or the safest paths to earn passive income.
3. Stock Investments
Stock Investments are another best way of creating passive income. However, this requires a certain level of expertise and knowledge. It is best to invest in stocks under the guidance of an expert, while stocks can potentially generate a lot of passive income.
4. Peer To Peer Lending
P2P lending is actually an alternative investment path, where you will be lending money essentially to borrowers and earn interest on top of it. It is safer to invest in P2P lending through a well-known mediator to reduce the risk attached to P2P lending by a huge margin.
5. Bank Fixed Deposit
This is the oldest way of creating passive income. The interest you earn is quite low through Bank FD but due to the low-risk factor, people tend to gravitate towards bank FDs. You can invest in a Liquid Fund if you’re willing to expand your horizons which is the type of mutual fund that offers high liquidity. This means you can take your money when you need it, unlike Bank FDs.
6. Start A Business
This idea is for the long run. Starting a business would require a lot of your time and work hard until your business is on autopilot. It can become a lucrative source of income for you, once the business does not require you to actively participate through royalties, stocks, bonds, etc.
7. Invest In A Business
Becoming a serial investor has its own perks. Through debentures, dividends, royalties, etc your investment in a business can generate passive income for you. However, you have to bank on the company at the same time to deliver steady profits and growth.
8. Become An Influencer
The easiest passive income way is to become an influencer. The 3 main pillars of influencer marketing are social media influence, building relationships, and content creation. However, you need to have a considerable amount of followers on social media and a huge engagement rate with those followers.
9. Become An Airbnb Host
This has the same challenges in making passive income as through a rental property. You can set your own price as an Airbnb host and list your house on the website for free. It also has a host protection program that guarantees a cover of $1,000,000 in damages.
10. Invest In An Asset That Pays You An Annuity
An annuity plan can help you generate regular income for life, after an initial lump sum investment. You can choose from different annuity plans such as Deferred annuity plans or Immediate annuity plans. However, it is very important to choose the correct annuity plan.