5 Ways to Make Passive Income

Who doesn’t dream of scrapping their 9-5 and working entirely for themselves? Well, maybe not everyone, but a lot of people do, and that’s why there’s been a growing trend toward passive income. Now more than ever, people are finding ways to make ends meet without having to punch a clock or deal with a demanding boss. If this is your dream and you’re ready to make it a reality, here are 5 ways you can do it:

Affiliate marketing – If you already have a website or blog that gets steady traffic, including a third party’s info on your page can add a little (or a lot) of money to your bank account. With affiliate marketing, any time one of your site visitors clicks on the other party’s link and makes a purchase, you get a percentage of that. Don’t make the mistake of thinking this is 100% easy money, though. Your site needs to be pulling in plenty of traffic, and you need to be creating regular content that will drive your visitors to click on those links.

Peer-to-peer lending – Also known as P2P, peer-to-peer loans have changed the lending game. Using an established lending site, investors seeking an income boost can connect with borrowers looking to circumvent the traditional bank-based loan process. The investor provides the funding, and the borrower makes monthly payments with a fixed interest rate that can earn investors anywhere from 5 to 10 percent ROI. While some may view this as a risky move – lending money to strangers DOES seem a little strange – when you’re working with a reputable company, much of this risk is removed, and investors make money with P2P far more often than they lose it.

Become a YouTuber – Got a special talent or skill that you think others would be interested in watching? Start a YouTube channel! With your own channel, you can do something you love, whether it’s cooking, gaming, or providing tutorials on something you’re good at – all while generating some side cash from Google AdSense. As a viewer, you may find those mandatory ads annoying, but as a YouTuber? You’ll love them for the cash they can pull in.

Build your investment portfolio – Very few millionaires have achieved their wealth without the assistance of a robust investment portfolio. Putting your money into stocks, bonds, mutual funds, and other assets can pay off handsomely. When building your portfolio, think about your asset allocation, and how details such as your age, investment goals, and risk tolerance will factor in. Remember to diversify your assets, contribute regularly, and rebalance each year. With good decision-making, you can generate large enough returns to live comfortably – if not right now, then at least in the near future.

Rental property – Property investment is one of the oldest methods for creating side (or sole) income. While it can’t always be described as passive – because let’s be honest, owning property can be a lot of work at times – it’s an excellent strategy for building your wealth and eliminating the need for other forms of income. When you buy a cash-flowing rental property, you can expect regular, monthly payments from your tenants – perfect for a little bit of side money. Now think what will happen if you buy multiple rental properties. That side money can become your sole source of income, FINALLY allowing you to quit that pesky day job and become a full-time property investor!