There are many people these days whose main source of income is a 9 to 5 job sitting in an office cubicle six days a week. A person is actively involved in this kind of work as they have to put in a conscious effort every day to work and earn.
What if there was another way to increase cash flow in which you would not have to invest so much time and effort?
It's like winning a lottery ticket. That is exactly what is meant by passive income. It basically means an alternate source of money for your additional expenses, so that you have a good grip on your financial life. It is perfect for several situations, like for students who have taken a student loan and can try to pay it off themselves. This article mainly deals with different aspects of passive income in details.
Passive income definition
Before delving into the details of the various sources of passive income that you can involve yourself in, you must get the basic ideas cleared. Passive income means an income that you can generate by sitting at home and not being involved in a job actively. The main source of money is still the active job that a person does daily in an office, offering his services to an organization. Passive income, on the other hand, is free of supervision. To quote a few examples, it is like writing a book and launching it in the market. Every time a sale is made, the publisher pays you a royalty amount.
Therefore, you are not making any additional effort to earn money passively anymore. It has been done once, and now you are just reaping the rewards. One thing that makes people a little apprehensive about the concept of passive income is the fact that there is always an air of uncertainty associated with it. It is during the initial phase that there is some doubt in mind about whether things will work out or not. Once that obstruction is cleared, it is going to be completely worth it. If you want an idea about the finances related to passive income, you can use snap finance review for the same.
Benefits of passive income
Like mentioned before, passive income is like winning a lottery ticket and constantly getting an amount credited to your account. The best part about passive income is that you don't have to put any additional effort or invest time and can go about with your daily jobs. The 3 best advantages of passive income include-
- Have more time to invest in other things- now that you have a passive income, the amount of money that you were targeting to generate each month will be achieved faster. You will have time left for doing additional things as well. You can also invest this saved time for resting or pursuing a hobby. Overall, the whole financial scene will be pretty relaxed for you.
- No need to report to work- this is like a dream come true for many. You don't have to wake up for work every morning and report to an office. You can travel to different places and keep earning from anywhere and everywhere.
- Sky's the limit- once your work is done, there is no limit to how much money you can generate. People have written a single book and have become millionaires in weeks. Thus, there is no financial limit here.
Creating passive income without a financial investment
If you look at all the examples of passive income closely, you will realize one thing in common. There is no financial investment of sizeable amount required. It is more about using your skills and brain to get going. Writing a book, photography, blogging, selling products online, all of it does not require you to spend in any way. Thus, you can start anytime and anywhere.
Completely Passive & Simple Ways to Increase Cash Flow
- Start a blog- the internet has become a part of everyone's life these days. It has been escalated by the fact that it is available at the fingertips at all times. People are reading blogs and interesting articles all the time. Therefore, advertisers are keen on publishing their ads on these blogs so that the readers can come across it as well. Start blogging, and once you have a dedicated group of people reading them regularly, you will see the ads coming in, and you can charge for it.
- Photography- take your camera and stand and head out one weekend. Have a fun day out and click pictures of your liking. You can then publish the images on various platforms like Shutterstock and get paid every time someone uses the pictures for their benefit. You have to ensure that the pictures of such superior quality though so that people choose it.
- Publish an eBook- it is basically an electronic form of a book that is available online. Again the boon of the internet plays an important role here. eBooks have become extremely popular these days among readers, and you can publish one and start earning.
- Online store- a perfect source of income for folks who don't have the ability to work outside of the home. All they have to do is create an online portal and sell whatever they want on it. It can be some handcrafted work or some food products. The options are many, it is just a case of good presentation and organization. My favorite online marketplace is Etsy.
- Create an online course- people are always eager to learn new things. If you feel you are good at something and can teach it to people, an online course is an excellent option. You can either do it in the form of video tutorials or through written materials, though the earlier form is more popular. You can arrange for live video classes as well and charge an amount for it.
Best passive income apps for 2019
- Birch Finances- this app tracks your finances and spending and gives you a clear perspective about what you should do for more rewards through credit cards. It also recommends ideal credit cards for you after analyzing your pattern of spending.
- Seated – if you frequently eat outside, you can use this app to make reservations and get cashback and offer coupons which you can redeem at the restaurant.
- Acorns – it is a “round-up”savings app that saves small amounts from the payments you make. For example, if something costs 5.5$, Acorns makes it 6$ but pays $5.5 only. The additional money is transferred to an Acorns account, and once it becomes a sizeable saving, it is invested in avenues which is sure to generate more money.
- Ally invest – if you want to earn more money, it is better to invest in bonds rather than stocks. Ally Invest is the perfect app for you for appropriate guidance in this respect.
- Airbnb – one of the most popular apps that let you rent out your place to people who are traveling at an amount less than hotels. Thus, you sit at home and earn.
- Outdoorsy – just like your property or home, you can even give your vehicle for rent and earn money through it.
Now that you have a general idea about passive income, it is time that you devise a way of doing so and gets that additional dough every month.