It’s the American Dream right? To build one or many income streams and then set them on auto pilot? That’s exactly what I am going to describe to you in today’s blog post. Passive Income.
I have built a number of passive income streams over the years and have been working on a number more of them over the past several years. The beauty of passive income streams is that once you build them and get them going, you can set them on auto pilot and keep earning money for years even while you sleep. Sounds awesome right?
Have you ever taken a vacation and dreamed about the day in which vacation could become your every day life because you no longer had to return to work? It’s all possible with passive income streams if you put a little bit of effort into them to kick start them.
For me, creating more passive income streams is all about getting more out of life while you are on this earth. If you can earn income in the background on auto pilot, it would give you the time to experience everything that life has to offer rather than having to go to work and fight the rat race every day.
Unfortunately, many people don’t know anything about this or this crazy idea that you can make money on auto pilot. Well I am here to tell you that passive income is real and you can make money even while you sleep.
I do caution you that this is not a get rich quick scheme. You are not going to wake up tomorrow and get rich from just flipping and switch, but if you apply constant pressure to this and have a desire and passion to achieve this, even you can establish multiple streams of passive income.
You will need to invest your time initially and depending on what idea that you would like to pursue, you may need to invest some money as well. But, for a life time of passive income, I believe you will find it’s well worth it.
So enough of the introductions, let’s get started learning about all the options that you can deploy to setup your own passive income streams and start making money even while you are sleeping.
What do you mean when you say Passive Income? What does it mean and can the average person achieve it?
Let me first explain what I mean when I say Passive Income. Passive Income means having the ability to earn income while you are not actively doing anything yourself to earn it. It basically just lands in your bank account and you did nothing to actually earn it. That’s passive income. Sounds awesome right?
Yes many average people just like yourself are generating passive incomes for themselves and so can you. Now, of course, you will need to do something in order to kick start these passive income streams. They don’t magically just appear, but if you are willing to invest your time, your money or both, you can get one of these setup for yourself.
Depending on the type of passive income stream your looking to build, it may not be completely on auto pilot. You may need to do some maintenance to keep it producing at full steam, but with all that being said it really depends on how much effort you want to contribute to your income stream. Many income streams can continue to run without any intervention.
Should I build one or many passive income streams?
This all depends on your aspirations in life and really is a personal decision. However, I will tell you that I would recommend to diversify anything you do in life because there is this thing called risk. I would recommend that you build multiple passive income streams because you never know what might happen in life.
Just think, you build this one strong passive income stream to find out that in an instance what you thought was a sure thing turned out quickly to dry up for whatever reason. If you have multiple passive income streams, you can keep moving on in life with a small bump in the road. If you only have one and it drys up, the income is no longer coming in.
What are the benefits of starting multiple passive income streams?
Well, not that I have to tell you this, but you can make a lot of money doing this. Although is may take you some time getting it all setup in the beginning, the pay off should be well worth it. Here are some benefits to get you excited:
- Once your passive income stream is setup, you can keep making money from it without needing to keep working. Many people have over time begun to make so much money from their passive income, that they choose to quit their jobs and do this full time.
- You may want to just diversify your income. Are you worried about loosing you job, maybe this could serve as a backup of income if you ever run into tough times looking for work.
- The ability to travel. If you are able to build a strong enough passive income stream, you could travel full time without needing to check into a job.
- Maybe you want to retire early? If you build up a strong enough passive income stream, maybe you can get on to the golden years much earlier than planned.
What are some of these passive income ideas that I can start building today?
So the suspect is killing me! What are some of these passive income ideas that I can start working on today?
Keep in mind that all of these may have their pros and cons. They also are not for everyone. At the end of the day, you have to find your interest and ultimately your passion because that will help make this all go much easier.
For example, don’t start a blog if you hate to write. Don’t rent out a room in your home to make some extra money, if you don’t want other people living with you. You get the idea.
Here are the ideas for you to consider.
1) Start your own YouTube Channel
Are you funny? Do you have a crazy family? Do you have something interesting to say? Do you have a talent? Maybe you have a specific interest.
Many people are making a living by producing their own YouTube channel. The beauty of this avenue to build passive income, that once you produce your videos they are out there forever for people to watch.
When people watch your videos on YouTube, you can make money from advertising. Some of the more popular YouTuber’s have made millions. Just find a nitch and make sure your passionate about your topic because you need to be authentic for your audience.
Maybe you like to find all the new cool toys and profile each one of them on your channel. Or maybe you love travel and cruising and you want to show off all of the cool unique places you have been. If your interested in the topic, chances are there are others out there in the world who would tune into your channel as well.
2) Start you own blog
If you like to write and you have an interest in a particular topic, you might be cut out for blogging. I actually created a step by step blog post on how you can get a blog setup super quick and you two can join the blog universe too.
You can meet so many cool people through putting your writing out there and you can collaborate with other bloggers in your space.
Once you get your blog setup and good quality content written, then the people will come to see what your all about. The more people that visit your blog the more money you can make from it.
Whether it be from affiliate marketing or advertising or online courses or books, there are many avenues to make money from your blog. That’s where the passive income comes in.
There are plenty of examples of average day people building up their blog to produce millions of dollars a year off of their one blog. It’s not impossible, but even if you fall short there is tons of potential to make some passive income from this option.
3) Rent out your car
Do you have a spare car or maybe you don’t use your own car all the time. There are sites where you can offer up your car for rent. There are ways to set it up in some areas to where its basically on auto pilot as well.
I recently wrote an extensive article on this side hustle through a company called Turo, where you can rent you car to earn passive income.
On this site, you post the car you are looking to rent out and it’s availability and people in the area will rent your car through this site and you make money from it. Don’t worry they provide full insurance for any damage that may occur to your car so you are covered.
This option may not make you rich, but it can provide some extra income that you don’t actually need to do any work to get paid. Just owning a car allows you to cash in on this idea.
4) Rent out a room in your home
Whether it be through AirBnb or a classified ad somewhere on the internet, you can make money by letting someone take up occupancy in your home.
Do you have any bedrooms that are going unused each and every night? Or, perhaps you have a detached in-law suite that in no longer getting used.
Consider offering it up to someone that may be looking for a home and you can earn some regular cash from their use of the space.
If you are in a popular area, you may even be able to get a premium on Airbnb because of the area that you are in.
5) Become a rental landlord
Half my family has stacked their retirement with rental homes real estate. Whether you have some cash set aside that you can buy a rental home outright or if you need to take a loan and have your tenant pay off the loan for you, there is a ton of passive income to be made in this arena.
You might be saying to yourself, well Drew this requires large sums of money to get started with this. Yes and no, it depends. You don’t have to start big, start small. There are a number of little places in my general area going for less than $25,000.
Whether you have to secure a small loan or if you are fortunate enough to have some cash at hand, buy the property and get a renter in the property to drive cash into your bank account each and every month.
My uncle has done this his entire life and now he is sitting on at least 20 properties 100% paid off. In his retirement, he is getting over 20 streams of passive income now, not to mention the amount of money that he would get when he is ready to just sell them all off. This can be a lucrative road long term.
6) Write a book or sell information
Writing a book these days, may not be what you think it is from days past. Books are generally not paper back versus hardback, they now come in many virtual forms.
The beauty of the book or information packet being virtual is that you can create millions of them for virtually nothing. Which means, that if you provide a way for your customer to purchase the book automatically, this is a great form of passive income. Set it and forget it, well except for checking the money pouring into your bank account.
With this idea, you need to come up with an idea for content. Content that many people need from you. Do you have a specific area of expertise that if hard to come by, perhaps consider offering it up for sale to be delivered virtually.
I know a guy who was in the hot tub business for many many years, so today he sells his knowledge of building custom home made hot tubs on his web site. He does pretty well with it as well. It’s amazing how many do it yourself folks are out there building their own homemade hot tub.
Just pick something that you know very well and bundle it all in a virtual book and offer it up for sale online. If you write a book, consider publishing it to sites like Amazon.
7) Sign up for affiliate marketing
Affiliate marketing is a huge industry. What is it? Companies want to sell their products or services. One of the hardest things to do in business is to get new customers to sell to.
Companies can break down that challenge by allowing many other people to help them sell their products and services through linking out to them from perhaps your blog. When your visitors link out to them and they make a sale, you essentially earn a commission off that sale.
This can all be done virtually and without any intervention from you, which is where the passive income comes into play.
If your interested in jumping into affiliate marketing, just search the web for affiliate marketing web sites and on Google you will find a number of the top sites listed to dive into. Sign up for an account and away you go.
8) Create an online course
This is similar to creating a book or online content for sale, but structuring your content into a course could aid in the content being that much more valuable and effective for your customers.
It’s not just a piece of material or a book, it’s an entire course that walks you through becoming an expert in a specific topic.
For example, bloggers put in countless hours making their blog a success and as part of getting your blog successful, you end up learning a lot in the process.
So you see a lot of times, bloggers creating online courses for things like how to make your blog successful in sites like Pinterest or Instagram, etc.
They put step by step courses together over many chapters of content, and now you can sell a course for money online.
There are many course creation sites out there that will let you create a course online and then sell it through their platform. Just search Google for creating a course online and you will find plenty of options.
9) Create an eCommerce store
Do you know where to get interesting products? Maybe you have connection overseas with some cool product manufactures?
None the less, if you have a good product that you think will sell well online, you could create your own eCommerce store online.
The great thing about this is that there are tons of companies that make it super easy to setup your new store and start accepting credit cards. You just need to figure out what you want to sell and then your in business.
If your interested in setting up your very own internet store, just search Google for create an eCommerce site. You will find plenty of options.
10) Start a membership site
Think about this… What kind of information can you provide that someone would pay $20, $30 or even $50 a month to have access to? If you can think of something like that to build a community around, then this might be an idea for you.
I have built membership sites by hand in my past and made a bunch of money from them. These days, there are platforms out there that take the hard work completely out of this and let you just focus primarily on the content that you are providing to your community members.
Your members pay you a regular payment to not only have access to your community of people centered around whatever topic you put farther, but to have access to whatever information you are providing as well.
The first time I built a members based site for a fee, before I could even get the site completely filled out with content, I had people signing up for the membership and paying me money.
Once you get your membership site setup and running, this could become a great passive income vehicle once it takes off.
11) High Yield Savings or Investment Accounts
If you already have some cash set aside, consider putting it into a high yield interest account or consider investing it into good growth mutual funds.
Although, this method is not going to make you rich, it will most certainly provide you with some additional cash growth over time.
Last year, the mutual funds I invested in grew over 20% for the year, so that can add up over time.
12) Pay off your debt
There is nothing worst that getting stuck in the rut of having all these monthly payments of debt to pay off. It can consume you both financially and mentally when you get over your head.
Since debt has played many rolls in my life both positively and negatively, I will say this. There was never a better feeling in the world when we eventually did get debt free.
As a secondary effect of paying off all our bills, we immediately realized that all this money that was going to various bills for years of time it seemed, were now unexpected income streams that we had never had the pleasure of truly utilizing before.
With no debt, we were free to spend our income on whatever made sense rather than funneling all that money to banks.
So moral of the story is that if you are deep in debt, focus your energy to get out of debt. Trust me, it will be worth it more than you realize today.