Passive income might sound complicated, but there are so many ways to make passive income in 2022 that you’re sure to find the perfect option to suit your skills, commitments, goals, and passions. To give you some inspiration for your mission towards financial independence, here are some of the best passive income ideas that almost anyone can take advantage of.
1. Invest in real estate
Real estate investing has been a well-established method for building wealth for almost as long as real estate has existed! Real estate investing was once a tricky venture to undertake – requiring a lot of time, effort, and expertise. However, real estate investment apps have now removed many complications and made it easy and assessable to become a real estate mogul from the comfort of your couch.
If buying properties seems a bit out of budget, you could also purchase a real estate investment trust – also known as a REIT. These investments generally pay generous dividends and follow the performance of the stock market. In this way, your investment value will go up/down just like physical property, but they are far easier to buy/sell, and you can diversify your portfolio by investing in different markets.
2. Invest in dividend stocks
We mentioned earlier that we don’t consider investing for appreciation to be a passive income source. However, if you invest in stocks that offer high dividends to shareholders, you could potentially earn some impressive cash from your investments. Hopefully, the value of your shares will also increase while you own them, so you’ll be able to enjoy passive income from the dividends plus capital gains when you sell.
If you’re not an expert in the stock market, you may want to consider a broker or even try Robo-advisors for a genuinely passive investing system.
Remember, investments are high-risk, and you could lose more than you invest. Always get advice before starting an investment portfolio.
3. Buy or start a blog
A great way to earn money with minimum effort is with a blog. Of course, this will take time and effort to build, as you will need to write the blog regularly and build an audience. Still, you can earn an impressive amount of income with a blog via affiliate marketing or even selling ad space on your website.
If you’re unsure how to start a blog, you could also make money by buying an existing blog. This is a great “cheat,” as you can benefit from the traffic and cash flow already established.
4. Get involved in affiliate marketing
Affiliate marketing involves partnering with a company to showcase and promote its products or services. Whenever someone follows one of your affiliate links to your partner’s site, you earn a commission.
There are a few ways to utilize your affiliate marketing partnerships to earn passive income. You could mention sponsors on your YouTube channel or podcast, write buying guides with links to the company’s products, compile product reviews, video unboxings, and much more.
To find the right company to become an affiliate for, you need to do some research and find a brand that matches your core values and your audience’s needs. There’s no point in becoming an affiliate for a butcher if your blog’s primary audience is vegans, for example.
5. Create an online course
Like writing a book, creating an online course that people can buy repeatedly is an excellent way to earn passive income. Sure, it’ll take time, effort, and expertise to get the course built, but once it’s ready, you can stick it online and enjoy the revenue created every time someone purchases.
These days, there are virtually no limits to the topic you could cover with your online course. Personal trainers could create a series of fitness videos, chefs could start an online cookery course, accountants could help others learn bookkeeping. Basically, if you have a skill or specialist knowledge, you could build an online course and earn money from it.
That said, you may need to show relevant qualifications and/or experience to build an online course that will actually sell. However, you might be able to earn income via a YouTube channel even if you’re not formally qualified… Everyone loves a life hack!
