A single income isn’t enough cash flow for many people to live a great life. It’s enough to get by, but to truly thrive, many people must find a way to make more money.
The problem is that many people must balance working time and income. Working several jobs is hard, so people turn to investing for passive income to separate the time spent working and the money made.
So, what are some common passive income sources? Keep reading to learn five of the best ones available.
1. Stock Investing
Stock investing is one of the most tried-and-true methods of creating passive income, where your net worth grows over time with the market, and you receive dividends. Your two primary options are an index fund and individual stocks.
Index funds are total stock market investments. It’s safer than other options since risk spreads across the whole market. You may see greater dividend income with individual stocks, but you may have more risk with this method.
2. Content Creation
It’s easier than ever to create content online. Depending on your interests, you have many opportunities available:
- posting pictures on Instagram
- creating videos for YouTube
- writing content for a blog
Online content creators can monetize with display ads, brand deals, affiliate marketing, and other methods. Once set up, your old content may continue to pay dividends and create a passive income.
3. Peer-to-Peer Lending
If you have a high enough net worth, you can earn passive income by loaning money to others. Many peer-to-peer lending websites that offer this option are available.
These websites allow you to filter potential lenders by specific standards, like income, reason for a loan, and other criteria. Find individuals likely to repay the loan, and you’ll make extra income from the interest.
4. Digital Products
If you’re good at creating products and have a specific skill set, you can use that to your advantage to sell something online. In this situation, you invest upfront time in product creation and sell your creation indefinitely.
For example, take the case where you’re a spreadsheet expert. You can sell spreadsheet templates to customers that perform specific tasks that remove manual work.
5. Real Estate
The real estate market is a popular option for individuals wanting to buy properties to make money. Real estate investment allows for many options, like flipping, rentals, and trusts.
For passive income, rentals are one of the most popular options. You can hire a property management company to handle much of the hard work and collect monthly rental income. If you don’t want to hold properties, you can find companies that buys properties near you to flip them.
Build a Passive Income Stream
With prices increasing and wages struggling to keep up, it’s no surprise you’re interested in earning more money. But the chances are you want to spend only some of your time working, so building passive income makes sense.
Luckily, many sources of passive income are available, from rental properties to content creation. Find the income source that makes the most sense to you and get started.
Do you want to learn more about creating wealth? If so, our website has more articles that can help. Check out the latest ones to learn more about increasing your net worth.
