Passive income can change your life. It’s how the wealthy continue to get wealthy and are able to pass that wealth down to their families.
If you want to quit your j-o-b, that just over broke job, just like I did by making passive income, keep reading!
What is Passive Income?
Passive income is where you work one time and make money over and over again. It’s different from active income, which is where you go to work once and get paid once. Your everyday job is active income.
These are some ideas of how to make passive income:
Best Ways To Make Passive Income:
Invest in Real Estate
Investing in real estate is my favorite way to make passive income, and it can bring in some massive returns.
Investing in real estate is considered passive income because you buy the property once and then continue to make money on it month after month by renting it out to a tenant until you decide to sell the property.
All you have to do is buy a house, put a tenant in that house and hold on to it for a long period of time.
To make money, add up all of the expenses related to the house.
They could include your mortgage, taxes, insurance, HOA fees, and anything else you have to pay for each month. Then, add at least $250 to that number and charge that in monthly rent.
That money will go directly into your pocket. It’s so simple! You buy that property once and make money each month until you sell it.
The best part of investing in real estate to create passive income is that my tenants pay all of my real estate related expenses.
Their rent payment covers the mortgage, insurance, and property taxes, and every other expense my property has.
As the mortgage is paid for by the tenants, you are gaining equity in the property because it is worth more than how much you own on it.
So, I’m gaining equity that I can eventually use to retire early by buying more houses I can do this by doing a cash out refinance and pull the equity out in currency and use it to purchase another property.
Just imagine if you had ten investment properties, each making 250 per month. That would equal $2,500 per month and 30,000 per year without having to put in any work.
Many investment properties can make $500-600 per month which would earn you more money in passive income and move you closer to early retirement.
I work 30 minutes a month on my real estate investments. I ask my property manager for a statement and I make sure everything is being paid on time and that everything is okay with the property.
There are so many opportunities to create online businesses that can generate passive income
which will help you make more money and retire early, you just have to be a little bit creative.
For example, I create online courses, coaching, ads, and affiliates under the umbrella of
creating an online business.
I started building this business to teach people how to invest in real estate after I saw how much it changed my life and my finances and wanted to share that success with others.
Now, these courses have started making me almost as much money as real estate investing does!
When you create an online business, you will need to create a website, podcast, and a youtube
Each of these platforms will help you reach more customers and also provide you with opportunities to make some extra money.
But, how do you make passive income with an online business?
Easy! Here are a few passive income ideas:
- Put ads on the website – you can use GoogleAds or something similar on your website. You will get paid a small commission each time someone clicks the ad.
- Affiliate sales – you will connect with another company that will sell a product to your audience.
The company will pay you a finders fee for each sale made as a result of one of your website viewers clicking the link attached to your website and making a purchase. Each click and purchase ads up over time.
Last year I received a commission check from one affiliate for $10,000!
- Sponsorship –You can have a company pay to be a sponsor for your youtube or podcast.
They will become a sponsor by paying you to place an ad on your podcast or youtube channel because you have an audience they want to sell to.
Sponsorships are a great way to make passive income because sponsors pay you upfront, whereas you get paid on the backend with an affiliate sale.
This way you don’t have to wait around to get paid and you can negotiate a rate you are comfortable with receiving.
- Selling online courses – This is one of my favorite way to make passive income.
You can create a course in anything you are good at and help people learn how to be successful in that subject.
For example, I took all of my experiences and mistakes in real estate investing and bundled them together into a successful system to guide a person on getting started and being successful.
You’ll charge people to take your course and they will learn a new skill from someone who is already an expert, just like they would in a college course.
This counts as passive income because you only need to create the course one time and it will sell over and over, making you money each time someone purchases it.
More Ways To Make Passive Income
Create An App
iPhone and Android apps can make a lot of money in passive income.
For example, I subscribe to the app RPdiet to help with weight loss. It’s $10 per month, so imagine if you have 100 people who subscribe to your app each month, that would equal $1,000 per month in passive income from creating this app.
You put in work one time when you create the app. You will then list it on the app store and make sure it is updated. Other than that, there is no work to be done.
Subscribers will pay you on a monthly basis and that will be extra money you make in passive income.
Create Products to Sell on Amazon
Creating products on Amazon is another great way to create passive income.
An easy product to create and sell on Amazon is your own book. My book, How To Quit Your Job with Rental Properties, was self-published and sells tons of copies that pay me repeatedly.
I don’t have to worry about shipping or advertising, Amazon does all of that for me. I just collect a check each time someone purchases my book.
If writing a book isn’t something you feel like you could do, that’s ok. Think of something else to sell since Amazon sells everything you could possibly think of.
Amazon Fulfillment Business
An Amazon fulfillment business is basically drop shipping.
What you’ll do is either make a product of your own, or find a company that has already has a product to sell. You will then sell it on Amazon.
I have a friend who sells mouse pads that he makes in his backyard. He ships them to Amazon, who then sells them to people on the internet. He makes passive income while doing very little.
Even better, if you can find another company that already has the product, you can partner with them and when amazon sells that product, you will collect money. How easy is that?
Sell Your Own Clothing
This can tie into your online business that you’re going to create to make passive income.
Once you have subscribers and clients, you can sell your own T-shirts or hats that have to do with your businesses.
It’s really easy. You don’t have to be a clothing designer or anything like that, there are companies who do it for you.
I sell t-shirts by connecting my website to PrintFull.com who is a fulfillment company. They will print up and ship the T-shirts or hats, and I collect the money from them.
The best part is, since you’re working through a fulfillment company, you don’t have to keep track of inventory, sales, billing, or any of the other business related side of things.
You just direct customers to your product and make passive income once they make a purchase.
These are just some of the fantastic ways you can create passive income. Real estate is my favorite way and the one I will always suggest.
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