This post may contain affiliate links which means that if you click through to a product or service and then buy it, I receive a small commission. There is no additional charge to you.
This is a collaborative post.
Important information: The information in this article is not a personal recommendation for any particular investment. If you are unsure about the suitability of an investment you should speak to an authorised financial adviser. Please also be aware that the value of investments can go down as well as up, and you may get back less than you invest. Tax treatment depends on individual circumstances and all tax rules may change in the future.
Are you looking to increase your income but don’t have the time to increase your workload? Maybe you have some money lying around that you want to work harder for you? If you answered yes to these questions, then you certainly could look into passive, or at least semi-passive, sources of income.
For passive income streams to generate income, you may need to invest a lot of time or money upfront. The returns, however, make the initial sacrifice worthwhile.
Here are some passive income ideas that you could consider:
Property
Property often tops the list of passive income streams for several reasons. For one, owning a piece of real estate requires minimal input. You may have to look for a tenant or manage the property yourself actively, but these are tasks that you can easily delegate to third parties if it doesn’t appeal to you.
Secondly, as a long term investment, property has the potential to appreciate significantly. If you ever decide to sell your property, you can benefit from significant capital gains in a rising market.
Moreover, rental property has the potential to provide a steady income for investors in the form of rent. You expect a reliable stream of income every month or every few months depending on your tenancy agreement or lease terms, set out by The Lease Extension Company.
If you cannot currently afford to buy real estate, you may want to consider crowdfunding a real estate project. You can scour crowdfunding sites to find one you would want to invest in, then put your money in it. Once the project starts making money, you will receive a percentage of the profit.
Invest in the Financial Markets
Another way to earn extra money is to invest in the stock market. If you are new to investing, you could take your first steps into the stock market through a robo-advisor. For those with a bit more experience or skill, you could trade forex, invest in government bonds, or provide capital to upcoming businesses.
As well as making sure you are in a financial secure place to start investing – with an emergency fund in place and all consumer debt paid off – you may need to brush up on your knowledge of how financial markets work. This will prove helpful even if you rely solely on experts to execute your trades or investments.
If you opt to invest money, make sure its money that you don’t need for at least 5 years, preferably even longer, since financial markets can be volatile.
Sell Courses Online (or membership subscriptions)
If you are skilled in a specific area, you can convert your knowledge into money by creating and selling courses online. You will have to invest plenty of time recording the videos and conducting research, but you will be well rewarded for your effort.
To improve your chances of success as an online course instructor, ensure that your topic is relevant and provides tangible value to people. If people feel they have gained something from your course, they will recommend it to others, thus increasing your outreach and income.
Check out The Money Lounge – my low-cost monthly membership
Own a Website
The final idea for earning passive income is owning a website. It could be something as simple as blogging about your hobby or as complex as an e-commerce site where you sell your products.
You could promote businesses on your website at a fee or be an affiliate marketer for renowned brands. There are numerous ways to monetize a site and earn extra revenue.