Cash flowing into your bank each month without having to work yourself to the bone- that really is the dream, right? While it sounds too good to be true, it actually is possible with passive income. Of course there are a couple of snags, first is that you usually need a significant sum of money, to begin with to invest, and second is that there can be some risks involved. But all being well, it’s possible to turn a sum of money into a much larger one with very little hassle to you. Here are some of the ways you can generate passive income.
Invest in Property
Bricks and mortar are almost always a good investment. While there are peaks and troughs in the market, each year property generally increases in value, so when you come to sell later down the line, you will make money as opposed to losing it (like you would if you purchased a car, for example). Buying investment properties and renting them out will generate you a fantastic income each month, and if you enlist a letting agent to manage the property for you, you’re able to take a step back. They will deal with tenants and collecting rent, after taking their fee you will have a nice sum of cash landing in your bank with no additional work from you.
Invest in Business
Maybe you’re an experienced business owner and really know what it takes to establish a successful company. You could set up a business, hire the right people and simply manage it from the top reaping the rewards of profits each month without doing a whole lot of work. Or you could invest in an up and coming business. You would provide them with funding to get off the ground in return for a share in their company. That way, even if they go on to become a massive business turning huge profits, you get your percentage cut out of it. This gives you the potential to earn big, but of course, there are risks too. Many businesses don’t make it past their first year and don’t turn a profit at all, so before spending your money make sure you’ve done your research into the company and are confident it’s selling a product or service that people actually want.
Try Out Peer to Peer Lending
Peer to peer lending is a way for customers to borrow money but while cutting out the middle-man (the bank) which saves them money. As a lender it can be great returns on your money since anything borrowed will be returned with interest. While there is some risk involved, many peer to peer lending sites minimise this by splitting up the funds and borrowing to many customers instead of just one. That way if someone stops paying their loan, you only lose out on a small percentage of your money and interest instead of the whole lot. If you have money just sitting in the bank, this way will generate a lot more interest over the long term. It’s not a quick fix, but a great way to increase your revenue.
Find a High Yield Savings Account
Speaking of savings accounts, this is another way of making passive income. While it won’t earn you as much as the others, it’s basically risk free so perfect for those that are a little more cautious. The more you have to put away the quicker it will generate, but shop around and find the best accounts for this purpose. Each bank will be different, so don’t just assume or go with your regular bank without checking. As well as standard banks there are a number of online banks you could look into too, do your research and find out how much you’re likely to make and whether your cash is going to be ‘locked in’ for a set period of time.
Create and Sell Online
One of the best things about digital items is once they’re created they can be sold many times with no more work from you. Photography is one example, if you’re a creative with the camera put your photos on a stock website and make some cash with every download. If you’re very good you could make a significant amount from this. If you design blog templates, graphics, clip art or any other kind of digital media, once they are created they can be put onto a site like Etsy and will make you money every time they sell with no need to restock. You will simply need to relist your ad every three months which takes a matter of seconds.