Passive income is necessary for effective wealth building. I’ve put together a list of 10 different forms of passive income to help you build wealth. I’ve found that some passive income streams work better for certain people than others. It’s up to the individual to find which will work better for their situation as well as their personality.
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1.) Stock Investments
Investing in certain stocks, ETF’s, index funds and mutual funds will provide you with dividend income. This is my favorite form of passive income because it’s one of the easiest forms.
2.) Real Estate
Owning rental properties or commercial properties can generate rent for you that ideally, will cover all your expenses and provide you with a positive cash flow. Rental properties that are self managed require work from time to time, making it a little less passive. There are property management companies that can make rentals almost 100% passive, at a cost.
You can also invest in real estate without purchasing any property. Realtyshares allows you to invest in real estate with a small amount down.
3.) Start A Business / Buy A Business
Starting a business is probably the ultimate wealth builder. Initially a business will require full time hours but eventually you can hire someone to run your business to make it passive. You also have the option of buying an already existing business in which case you could hire someone to run it immediately.
4.) Start A Blog
Starting a blog is a great way to earn passive income. There are blogs out there that make millions of dollars per year. Blogs generate money through advertisements, affiliates, sponsored posts and more.
5.) Write A Book
Writing a book is a very pure form of passive income. Though writing a book is very time consuming, once you publish it, all the work is done. You can publish your book on Amazon and simply collect the profits.
Check out the ebook I wrote called Investing In The Stock Market: The Complete Beginner’s Guide
6.) Peer To Peer Lending
This is a form of passive income in which you invest in loans to other people. There are many different loan options and there is always the chance that the borrower will default. I have yet to try these sites but two of the most popular are Lending Club and Prosper.
7.) Create An Online Course
Designing an online course is similar to writing a book. You put all the work in once and then it’s on autopilot. I’ve seen some very successful online courses.
8.) Create Youtube Videos
I think we’ve all seen some of the successful Youtube content creators out there. These creators make money in various ways including sponsored products and advertisements. Youtube can generate a large amount of passive income if you are able to build a large enough audience.
9.) Rent A Room In Your House
This can take a little upfront work but it can be pretty lucrative. Sites like Airbnb allow you to easily rent out a space in your home for travelers.
10.) Create A Mobile App
Though you may not be a software developer you can still create an app. You can hire out all the programming work to get your app finished. Once finished there’s little involved aside from bug fixes and updates. Apps generally make money through ads and in app purchases.