Few buzzwords and phrases related to building wealth have gained as much traction as “passive income.” A passive income refers to any earnings derived from any enterprise that the individual isn’t actively involved in, and they go a long way to making sure you’ve got a bit extra in your checking account to retire on when the time comes.
There’s a perception that passive income streams are something of a get rich quick scheme, but that couldn’t be further from the truth. It actually takes quite a bit of time, planning and money to create such a thing. If you think you’ve got what it takes, here are a few ways you can do it too.
1. Stock Trading
Stocks can be an extremely efficient way to create a passive income stream, but only if you know what you’re doing. The part many people stumble over, naturally, is picking which stocks to invest in and trade. For many, though, trading the stock market is a very alien, complicated-sounding proposition.
Luckily, there are plenty of ways to get solid advice and training for helping you get started. Investigate online education facilities like Learn To Trade that teach new investors how to trade Forex stocks. This means that anyone, regardless of experience, has a chance at building a fruitful portfolio.
2. Affiliate Marketing
This one sounds like another buzzword, and to others it may appear to be another get rich quick scheme. The way affiliate marketing works is that website owners and bloggers agree to promote the product of a third party. They do this by placing a link to said product on their website as part of a post.
Every time a visitor to the site clicks that link and actually makes a purchase from that third party, the site owner takes a commission. Create yourself a blog, start building a follower base, and start creating contacts; that’s the secret to success in affiliate marketing. In this world where online personalities are becoming more and more common, now is the time to make your mark so that you can better profit in the long term.
3. Rental Income
Investment properties have long been a popular way to earn a decent passive income, but this is yet another example of having to work hard for the passive money. You have to know the return on investment you want, you have to know what the property’s expenses look like, and you have to understand the fiscal risks involved in owning said property. What if you get a problem tenant who wrecks up the place or doesn’t pay rent on time? Take your time, check all potential tenants extensively, and make your decision after weighing up the risk vs the reward on your investment.
As you can see, passive income isn’t a set-and-forget solution for financial security. Getting a passive income up and running is a lot of work. It takes time and dedication and, in a lot of cases, quite a bit of cash to get started. But for the smart, savvy investor, it can be one of the most rewarding and reliable ways to supplement your income. What are your favourite passive income plans? What advice do you have for someone looking to get set up? Speak up in the comments below.