People’s definitions of passive income vary from being absolutely no work to just a bit of work to “I only work there 5 hours a week, so that’s passive!” The definition of passive is basically to do nothing. With that definition virtually no form of income is ever truly passive.
That’s not to say there aren’t forms of very low effort income. There are many forms of income which once set up, if set up properly can produce income for some time. My aim is to be financially free and have forms of income which are essentially passive. Yes, I will need to do stuff initially to set them up and monitor things from time to time, but they will basically run themselves.
So what are my ideas?
Yes I know I have had a nightmare of a time with mine, but I still think this can be a great investment. I now know what to look for in a property manager, as well as having the experience of doing it before I know the laws and I also would never do it so personally again. We rented to friends and whilst it worked for a while, it is not the way I would do it again.
If you want to invest in shares you really need to do some research first and not just pick randomly. Having said that, shares are a gamble and go up and down at any time. Lately they have been all over the place, but long term they have performed well. Some people get lucky and randomly pick good shares, but more often than not is it through thorough research that good stock is chosen.
Whilst not all businesses are run virtually on their own, there are many you can purchase that pretty much run themselves or if you set it up right from the beginning you will not need to do it all. Another way to be involved in business without doing a lot is to be a silent partner. You put money in and get money from it but are not actually involved in the decision making process or day to day running of the business.
I have a few website ideas which I would like to look into more later. They are not as involved as blogging. I need to learn a little more about a few things before I consider this one further, but it is on my list. Through the websites I plan on making money with affiliate marketing, eBooks, advertising etc… But obviously there would be good relevant content to begin with.
There are apps for everything you can possibly think of now and if you know what you are doing or are a quick learner this is something you could do, which once you have created would generate income for you with essentially no effort once set up.
These sites are ones where you write a post and can generate income from it if it is popular. The income is not a lot, but if you can get traffic to your post, you can generate a bit. I have only create 2 squidoo lenses so far Where to Find Money and 50 Great Yard/Garage Sale Tips.
Once a video is on YouTube is pretty much there forever. If it is popular and you have a few you can join the partnership program and make money from the ads on your videos. It takes time initially to set this up, but once you’ve done it, it’s there for all to see.
These are just some of my ideas, but there are more out there. It is simply a matter of finding something you like, are good at or can learn easily and going from there.