How To Generate Passive Income
Buy Investment Properties – Investing in properties provides a great revenue stream. If you buy at the right price you can rent the property out for more than the mortgage which provides you with some extra income each month. You can either invest in homes or commercial properties depending on how much money you have to make the initial investment and then with just a little work you will have added to your bottom line. Keep an eye on the market for when there is a good time to sell at a profit.
Sell Bonds – If you have a significant amount of liquid assets you can offer loans to businesses and earn the interest payments until the date the principle amount is repaid. Bonds do not earn a lot of residual income, but over time the money adds up.
Websites – Building a website or blog is a simple way to generate passive income. If you have expertise in a particular subject you can build the site around it. Then all you have to do is market your site and use affiliate marketing programs and advertisements to earn money on the site. You do not necessarily have to sell nay products in order to make money on your website.
Sell Insurance – Opening an insurance company is a huge task. However, selling policies for simple life insurance is not such a big undertaking and can provide added commissions. You can even do this in addition to your regular job by meeting with clients in the off hours or on weekends.
Write A Book – Books earn money in the form of royalties. Often, this amount dwindles over time but it can still provide at least some money for you. You might even consider writing eBooks that can be sold online and have little or no initial cost to produce which increases your profit margin. If a book is not in your future you might be able to write newspaper articles or a blog, both of which can generate significant income.
Resell Items – if you have a penchant for antiquing or going to thrift sales then reselling might be the perfect passive revenue stream for you. All you have to do is buy things that you like or that you know have value and then resell them at swap meets or online on a site such as ebay. You can easily turn a profit if you have a good eye for value.
Invest In Stocks That Pay Dividends – Dividends are money that is paid quarterly to investors. During the recent recession many companies stopped paying out dividends, but they have started to pay them out again in both big and small amounts. Choose stocks wisely and you can earn extra cash with no work at all.
If you are ready to stop working all of the time or just want to pad your current finance then seeking ways to should be your top priority. If done correctly you can be financially free for life because you will always earn revenue no matter what happens in the job market or how much is in your retirement account. Look first at your personal finances to see how much you have to commit to generating passive income and then what possibilities exist based on your finances and personal strengths.
This article was written by Timothy Ng who is a regular personal finance writer and part of the team at Credit Card Finder, a 100% free Australian credit card comparison and application service. Visit the Credit Card Finder website for more information on credit cards