You've got a steady cash flow from your regular gig, and that's cool.
But deep down inside, you know you want more.
And you know that diversifying your income is essential, and you want those new streams to be passive income streams.
In this episode of the online business clinic, we're breaking down 11 ideas for generating passive income while keeping your full-time gig. You can finally create lifestyle and financial freedom - aka build true wealth.
What is Passive Income?
Passive income is income you receive after doing the work upfront, but now you know your time is no longer directly tied to generating more money.
And let me be clear. Many passive income streams still require regular maintenance.
Ultimately if you want more money, you must provide value.
The more value you provide, the more money you can make.
"Money is just a yardstick that measures the quality and quantity of service rendered. " - N.H.
Active Income vs. Passive Income – What's the difference?
When it comes to achieving financial independence, passive income leaves active income in the dust.
Active income comes in when you exchange your time for money. If you don't work, you don't get paid. Your time equals money.
And then you have passive income.
You're welcome to continue grinding out the 9to5 and trading your time for money until the day you die.
Or you could choose to work smarter, not harder, and set yourself up to allow your money to go to work so that you don't always have to work for your money.
Here's the thing, if you're looking to create a life you love, one that affords you freedom, do focus your energy on what matters most to you; you need to get some time back to do so. Concentrating on setting up passive income streams will help you get there.
Remember the ideas I'm about to share with you to help you create passive income; none are get-rich schemes.
If you buy into the widespread belief that things should come fast and easy to you, this episode is not for you.
To make passive income comparable to income earned from active efforts requires a good amount of work upfront—sometimes years of focused work with seeing a return on your investment.
"Those who want more must be willing to endure more."
11 Passive Income Ideas 2022
Passive Income Idea #1: Investing
Investing is an effective way to put your money to work and potentially build wealth.
Smart investing may allow your money to outpace inflation and increase in value.
The more significant growth potential of investing is primarily due to the power of compounding and the risk-return tradeoff.
When you look at the world's wealthiest people, it's safe to say that investing has played a significant role in their wealth-building efforts.
While investing is pretty passive, the research into stock picking is active.
Warren Buffett himself reads 500 pages of business' annual reports daily, but he's not curing through his local Omaha, NE McDonalds to grab a bite. Nope. He actively dedicates his time to better understanding whether a business is performing well, which helps him improve his investment ability.
Thanks to compound interest, investments can help you earn passive income that builds, but stock picking can be tricky.
As a former financial advisor, I highly recommend that you consider investing as a long-term game and diversify your dollars into multiple high-performing stocks via an index fund such as the VFIAX.
Consider setting aside 15% or more of your income each month to buy shares.
Be sure to do your due diligence before reading the prospectus to understand what you're investing in more clearly.
The best part about investing is that anyone can get started. It only requires a few minutes to set up and now a unique skillset to begin seeing a return on investment.
*Disclaimer: consult your trusted financial advisor
Passive Income Idea #2: Real Estate Investing
Real estate can be an excellent way to make passive income depending on where you buy.
I like this passive income idea because while it does require some upfront cash, it doesn't necessarily require any special skills on your end because you could always hire a property manager.
Like all investments, it can be risky, so it's best to speak with a real estate agent to help you buy the right investment property if you're new to the game.
Passive Income Idea #3:Sell Digital Products
Selling these digital products is the epitome of passive income; it doesn't cost anything to reproduce the effect once created. Once made, your digital product sales can be automated.
Digital products can include audio files, PDFS, and graphic design, to name a few. For more ideas on Creating Digital Products to Sell Online, watch this:
Passive Income Idea #4:Create an Online Course
Selling online courses is one of my favorite ways to generate passive income ideas it's my favorite.
Creating a course isn't as hard as you might think. I'm happy to teach you how to get paid to develop your online system. For more info, visit my website, MollyAnnLuna.com.
Passive Income Idea #5: Write an eBook
Ebooks can be fun and easy to create. Especially if you leverage the work, you've already done by creating a digital course.
I can show you how to publish an ebook without writing a word.
I've created another episode on how to write a lead gen book. I'll leave a link to it here.
By focusing your writing efforts on creating how-to ebooks on popular niches and marketing them, you could build a fanbase of loyal readers and generate a steady income stream.
Passive Income Idea #6: Create a Print on Demand Online Store
Suppose you're a creative who wants to turn your unique work of art into various physical products. Think mugs, t-shirts, prints, etc.
For example, my friend Mathew J.P. is a photographer and has set up a successful print-on-demand store.
Magazines, stock images, and canvas printing for your clients are ways you can make money as a photographer no matter what your skill set.
Passive Income Idea #7: Create YouTube Videos
As the number two search engine, YouTube is a passive income stream that, once you can crack the code, continues to give long after you publish.
To become a YouTube partner and take a share of the ad sense dollars, you need to have 1,000 subscribers and 4,000 watch hours, which I can tell you firsthand is no easy feat.
Since re-dedicating myself to creating high-value video content on YouTube, I continue to reap the rewards as many of my videos bring awareness to many of my other passive income sources.
My channel is super close to hitting monetization, so I'd appreciate it if you'd show your support by smashing like, subscribing, and binge-watching a playlist a two.
Passive Income Idea #8: Launch A Podcast
While at this time, podcasts don't have an active algorithm to match listeners with shows. Podcasts are free to set up and easy to produce.
A podcast can become a passive income stream as an ad platform to promote your digital product or with paid ad sponsorships.
The current average cost of podcast advertising is a CPM of about $25. A CPM for 30-second ads is $18, and the average CPM for 60-second ads is $25.
*Bonus point - sponsored ads can also turn your Instagram posts into a passive income stream; you'll need to build your fan base first.
Passive Income Idea #9: Affiliate Marketing
Affiliate marketing is one of the best passive income opportunities available today.
Most big brands have an affiliate program, whether you want to cross-promote physical or digital products.
I'm an affiliate marketer for several brands. For the latest list, visit MollyAnnLuna.com/smarttools.
One that is super easy to set up? Amazon. These three steps process, sign up, recommend, earn, make it easy to create passive income, and the best part is that it doesn't cost anything.
Passive Income Idea #10: Publish a Blog
With a blog, you can potentially earn passively by sharing your affiliate links, courses, sponsored posts, products, book deals, etc., on your site.
You need to understand SEO and have a strong writing sense. Creating a successful blog can take quite a bit of upfront work. However, it's can also be one of the most sustainable ways to generate an audience through organic and social traffic.
One of the biggest perks about creating a blog is turning that one asset into several different income streams. So if you're looking for an easy passive income idea, blogging might be the perfect option.
Passive Income Idea #11: Setup a Dropshipping Store
When looking for a profitable passive income idea? Consider setting up a dropshipping store.
With drop shipping, you can find trending products on marketplaces like AliExpress that you can then sell online to customers worldwide.
You can sell products in various niches such as fitness, interior design, fashion, or beauty.
With dropshipping, you set up your storefront and get to control which products you sell and for how much.
Passive income can help elevate your earnings and fill in the gaps that your 9 to 5 job can't fill on its own.
Like I said, initially creating your passive income streams does take up-front focused work. Whether that's days, weeks, or years, in the end, the time will pass regardless, so why not invest in yourself now so that you can have the lifestyle and financial freedom you crave in the future.
Tune in to the next episode for more income replacing passive income ideas.