Passive Income Ideas
The basics of financial literacy are income diversification, that is, the ability to receive money from different sources. During the pandemic, the question of what ideas for creating passive income will be relevant in 2022 is especially popular. We talk about the options in the article!
Passive income is income that requires a minimum amount of effort and participation. Unfortunately, doing nothing at all will not work: at the start, you will have to invest either finances, or time, or efforts. And sometimes all together. But you should not be upset: over time, the business will work like clockwork, and you will be able to do other things.
We do not offer you trading or renting an apartment, but we advise you to consider the safest types of passive income and how to earn it.
4 types of passive income
There are 4 types of passive income. First, these are working capital assets. This is a story that “to sell something you don’t need, you must first buy something you don’t need." In our case, you first have to buy something you need, that is, profitable. This, for example, real estate, a franchise or an established business.
Secondly, you can create an asset yourself. This is what advanced investors do — they create money. This takes time and skill, but this option is more promising than the others. This type of passive income includes, for example, websites, applications, books.
Thirdly, it is cost reduction. This is how you create spending income. Changing your habits will not be easy, but it will free up money for more profitable options.
Finally, the last option: leasing and selling assets. Working capital and created assets can be rented out and resold when they rise in price.
Let’s move on to the most interesting – ideas.
Ideas for creating passive income
Basic needs for nutrition, safety, health services are relevant now. In addition, there is a need to improve the quality of work remotely, new services, help in overcoming fears.
Passive investment income
There are several investment options. First, there are stocks. You can follow the strategy of Warren Buffett: he did not sell shares while he was making a profit from the business. By finding a few profitable stocks and holding them for 3, 5 or 10 years, you can sometimes increase the initial amount several times.
A more reliable option is bonds. Their essence is that by buying bonds, you are, as it were, lending to the state or a private company. After a few years, you get your money back with a small percentage. Usually they are slightly more profitable than a bank deposit.
If you are willing to risk a little more, invest in crypto assets. It is better to distribute the amounts among the largest number of startups or currencies. These are venture investments: they are less reliable, but can increase the amount of money invested literally hundreds of times. For example, Bitcoin has grown by almost 700% in a few years.
If you are a professional at anything, make money from your knowledge. Create instructions, manuals, write books, shoot video tutorials or online courses. Take care of quality. First of all, you should give specific answers to questions and practical solutions to problems, pay attention to the level of the audience. Work on the presentation of information: structure, simplicity, fun.
The great advantage of this method is that you can only do something once, but still sell it to many people over a long period of time. Moreover, the sales mechanism can be automated and it will work without your participation.
If you are thinking about how you can create your own course, then we advise you to learn more about marketing, analytics and website development. Basic knowledge is easy to find on the Internet.
If you are not yet confident in your abilities in the infobusiness, monetize your website, blog or channel. Place ads on it, sell your services, organize affiliate programs. If there is no time to create a new blog, buy a ready-made one: there are offers on special exchanges.
Buying profitable sites and creating applications
You can create a profitable site yourself, but you will have to constantly spend time on this for at least a year. On the other hand, you will spend a maximum of 30-40 thousand 🪙 on this, and if you understand the topic, you will receive about one and a half million a year, doing almost nothing. It all depends on your motivation, financial and time possibilities.
Recently, such a source of passive income as the purchase of a ready-made website has gained popularity. There are unprofitable and profitable projects, so sites are constantly selling and buying.
Sometimes it is even more profitable to buy a site. This can be done on exchanges like Telderi or Flippa.
An even more relevant option is the development of applications and games on the phone. The demand for quality services is growing every year: people use them to monitor their health, productivity and finances. There are application constructors with which you can implement an idea without programming skills. However, keep in mind that if you want to compete, you still have to refine the product: on your own or with the help of a programmer.
Rent out property
It happens that we need some things once a year. In this case, it is more profitable to rent than to buy. Rent out construction tools, evening dresses, and even books.
There is another option: buy an inexpensive car, maybe not even a new one, and take it to a taxi or rental service. Before that, be sure to understand the legal side of the issue, find out everything that is possible to know about the taxi company or company. In large cities, this idea brings 30-40 thousand net profit per month. True, there are risks: if in some companies repair and maintenance of cars are taken over, in others you will have to do it yourself and at your own expense.