Smart passive income ideas can make you money while you sleep! While most people are caught up in trading time for money, those in the know have already started creating a passive income. Passive income is income which comes in rain or shine, working or not working. It’s the best kind of income to build because it’s not dependant on you turning up for work.
With a job, when you stop working you stop getting paid. With passive income you continue to get paid even after you stop doing anything! So here’s a few smart passive income ideas. Some of these will require investment of cash, and some will require a time investment. As you acquire more passive income, you should be creating more time and more money. This means you can continue to work on passive income streams and be less tied to creating income from trading your time for money.
Smart Passive Income Ideas – Invest In Income Producing Assets
This one sounds obvious but often people get stuck on buying those things which make us look wealthy rather than actually generating money for us. Robert Kiyosaki calls the two opposing things assets and liabilities. When you spend money on liabilities they make you lose money. You subsequently can’t therefore invest that money in more income producing assets! An asset isn’t necessarily what you might think. Most people think a car is an asset but it’s actually a liability because it costs money to run and it depreciates in value. A liability is anything which costs us money, an asset is anything which generates cash flow.
If you own a house and rent it out, it’s an asset. But if your mortgage payments are more than your monthly rent, it’s a liability! If you haven’t the capital to invest in property, you can invest in stocks and shares. A good stocks and shares app is Trading 121.com. You can even get the app on your smart phone.
What’s good about this app is you don’t need a fortune to start investing in stocks and shares. You can invest in stocks which offer dividends only too if you wish. This means you’ll get dividend payments when the stock is profiting.
MoneyBox
Moneybox is a UK based investing app which connects to your bank account and rounds up your spending on the go! So when you spend money using your bank card, it automatically rounds up to the nearest pound (or your country’s equivalent). This is pretty awesome and I’ve been using this app for some time now.
You don’t miss the tiny amounts which get invested while you can forget about the app! It’s a great way of investing and if you don’t have tonnes to invest you can start small and build up over time.
You can also adjust your investment level and include weekly payments. The app will also project your potential earnings over time so you can adjust your investment amount according to your longer term goals.
Smart Passive Income Ideas – REIT’s
REIT’s – or Real Estate Investment Trusts are trust funds built on property investment portfolios. If you don’t have a property you can invest in a REIT instead or as well.
In many ways REIT’s are better than owning a property and renting it out. With a rental property you have upkeep, damage, insurance and constant problems with maintaining your tenant’s happiness according to all their needs! With a REIT, you don’t have any of these problems. You simply invest and get paid dividends on your investment.
REIT total return performance for the last 20 years has outperformed the S&P 500 Index, other indices, and the rate of inflation. So they’re a solid investment as part of your portfolio. See more on REITS here.
Blogging/Video Blogging
Blogging is another smart passive income idea which although takes some time and energy to create, can serve you for a long time.
Bloggers generate an income from the internet either through using affiliate products or using Google’s Adsense or another similar advertising program. Blogging is a long term strategy to generate a passive income from the internet. Once you create a blog, you will need to build content on it and promote it through multiple strategies.
Once you start getting traction, people will visit your blog through finding you on the search engines, other websites and through social media channels where you share your content.
You can also do video blogging too. Upload videos to the major platforms like YouTube and TikTok, build a following and promote affiliate products from your content or use paid advertising to generate a passive revenue.
Smart Passive Income Ideas – Affiliate Marketing
Affiliate marketing can be combined with blogging but you can build an affiliate business in several other ways too. Many affiliates will build an email list of subscribers and promote products and services to a growing number followers. Through using content, you can generate a “digital footprint” which can generate income for years to come.
Plus, through using recurring income affiliate programs, you can earn ongoing income from sales you generate. This adds up over time. For a $20 recurring commission, with 100 sales you’ll stand to make $2000 a month, providing your referrals maintain their memberships. Plus this is passive once you have done the work and made the sales.
See also wealth building habits.