Working 40 hours a week or doing double shifts might have made you think yourself that “I’ve had enough.” You may need something more, perhaps a passive stream of income. Something that doesn’t drain you or requires you to put extra hours. Lucky for you, such passive income sources exist. You can set them and then forget. The money keeps rolling in.
If you are a trader online, you must be familiar with some of these methods already. For those of you who are not, here are some passive sources of income that will give you financial freedom. The best thing is innovation, technology and best internet services in Arizona or any other place in the world have made it easier for us to accelerate our earnings.
Let’s begin, shall we?
1: Buy Stocks of the Giant Companies
There is a large number of companies out there that are willing to pay consistent dividends to investors. They exist for a long time. Good examples are Coca Cola, Apple, ExxonMobil, etc.
These companies are running a stable business. Even if the stock market has to go through its own set of ups and downs, these businesses have the potential to survive. They also have a history of paying regular dividends. These dividends payments will serve as your income stream. You simply have to buy the stocks and forget.
2: Open a High Yield Account
This is not going to make you filthy rich but it is a safer way to get started. There won’t be any fear of losing your money either. And you can get started online. Pick a bank and use their online service to open a high yield savings account. You can get up to a 2% yield on it. Some banks allow you to open an account with $10 without any service fee.
3: Purchase Bonds
A bond could serve as a passive stream of income, too. It’s also a great instrument if you want to diversify your investment portfolio. A bond has a maturity date. So once you have invested your money, you will get the principal and the coupon payment as the bond matures.
Just like stocks, you will have a variety of bonds to choose from depending on your country. Some common types include fixed income bonds, treasury bonds, municipal bonds, etc. Choose the one by evaluating its interest rate. If the interest rate is higher, the bond’s value will decline. In case all of this sounds confusing, refer to some of the best investment books for help.
4: Start Self-Publishing
If you are a writer, this source of passive income is for you. Amazon is helping talented writers in making a steady income by publishing their books. Self-publishing is natural for bloggers. Just pick a topic and write a book about it. Once you have successfully published your book, there is almost nothing left to do for you expect to advertise.
You can write a new book every few months. As your readers grow, so will your revenue. This could turn out to be a consistent source of income even if you stop writing.
5: Sell Ads on Your Website
This one is for those who already have a blog or website. You can sell ads on your website and earn from them without doing any work. Google AdSense and similar other platforms let you set up ads on your blog. Once a user clicks those ads, you get paid in return.
This is a great strategy to earn passive money but it will only work if you have a good amount of traffic on your blog. For example, if you are getting 10,000 visitors a month, you can make $50 to $100 from it per month. Of course, do not make the mistake of quitting your job just because you are planning to earn from advertising. Make sure you have are using reliable internet which comes with cox internet offers and have no other distractions.
6: Start Peer-to-Peer Lending
Ok, let’s be real. This is only an option if you actually have extra hundred or maybe thousand dollars to lend.
Peer-to-peer lending helps denied borrowers get loans. This has grown into a multi-billion dollar venture now. Many lending clubs offer help to borrowers by connecting them with lenders. You can become a lender, too. Your passive stream of income will be the interest rate. You can charger a higher interest rate as compared to what other financial institutions typically charge because you are lending to high-risk borrowers.
7: Buy Real Estate
This could be a powerful stream of passive income if you are willing to take the task of property management. You can start little by renting a room in your house. You can go big too by renting out the entire house or buy a rental property. The rental income you get must exceed all expenses combined (mortgage, insurance, property taxes, and other operating expenses).
Real estate requires a lot of legwork and research. It’s not everyone’s cup of tea either. If you have the means and skills to make it work, this could become something very fruitful. Moreover, once all is set, you would just have to sit back and enjoy the cash. It is also worth exploring another option that isn’t widely known, which is a cell tower lease. The land you own can be rented out to a telecom company for the installation of a cell tower. After they find your land suitable and approach you to sign a contract, you can get a regular income every month. When the contract expires, you can negotiate cell tower lease renewal and get better terms.
It’s high time you pick from these options and create passive sources of income for yourself. Keep in mind for some ideas such as CFD stock trading or peer-to-peer lending, you will need cash up front.