What Are the Greatest Ways to Build Passive Income?

In 2021, the median household income was $70,784. That’s not bad, considering that this amount is enough to live comfortably in some parts of the US.

But what if you’re struggling or want to save up for something big? After all, living paycheck to paycheck won’t suffice if you want to eventually go on vacation or make a big ticket purchase.

You can always get a second job, but why not consider ways to build passive income instead? After some initial effort and time, it’ll pay off and generate money without continued actions.

Are you now interested and need some inspiration? Then read on for the greatest passive income ideas.

Start a Blog

This is perhaps one of the most “active” passive income methods. However, it can be fun!

Think about the knowledge you already have, and put it down on paper. For example, if you love wildlife, you can write a wildlife blog.

To get your content in front of people, it’s beneficial to use search engine optimization (SEO). It’s best to hire experts to do this for you, but the good news is, the basics are free and easy to learn.

To keep the money coming in, you should stick to evergreen content. That way, what you’ve written now is still relevant in a few years.

To monetize your blog, sell ad space on your site. You can also offer sponsored posts.

If you want to make blogging more passive, then consider purchasing a well-established blog. Or you can hire a few external writers to generate content that you can profit from for years to come.

Do Affiliate Marketing

If you’re already blogging, then get into affiliate marketing too. This is where you promote a product through your unique links.

You’ll want to avoid coming across as too salesy since readers know when bloggers push products. Make it more organic by only partnering with third parties that are in a related field.

Using the wildlife blog example from earlier, a great way to do affiliate marketing is by promoting a brand’s birdseed. Not only do you point your readers to something useful, but you’ll also make a little money when they click and buy.

Sell Ebooks

This idea can also be labor-intensive. However, it’ll pay off in the end if you create something of high caliber.

We’re not saying that you have to write the next best-selling novel. And with e-publishing, being a writer costs a lot less nowadays!

Again, like with blog writing, think about what expert knowledge you have. If it’s in a niche subject, then even better.

If you’re not comfortable writing the book yourself, then write down your ideas and give them to a freelance writer. They can type up everything for you, then you can take this to a designer to finish things up.

Once all the hard work’s done, you can list it on sites such as Amazon. Or you can create your own website to sell the book on, but we don’t recommend this route, as it’ll take a lot more work to complete.

If the ebooks are in the same niche as your job, then use this as an opportunity to drive clients to you. You’ll kill two birds with one stone!

Sell Online Courses

This is yet another passive income idea where you’ll need to be an industry expert. And depending on what the subject is, you’ll probably need a decent camera, microphone, and/or screen capture program.

When recording your courses, make sure you speak at a slow enough pace and that you enunciate your words. Have good lighting and an uncluttered background, so you look more professional.

After editing your videos, you can either put them on your own site or an online course site, such as Udemy. The latter option is easier, but be aware that these sites will take a small cut. It can be worth it though, as you won’t have to do intense marketing to get the word out.

This idea is easy to pair with blogging, as you’ll have already outlined all the crucial information. Having two types of media for users is helpful, as they can choose which they digest most efficiently. If you’re lucky, they might consume both, so you’ll earn double the passive income!

Sell Stock Photos

Do you enjoy snapping pictures wherever you go? And do you have a DLSR camera or smartphone? Then selling stock photos is a viable option.

You don’t have to be a professional photographer either. So long as your images are high quality and clear, anyone can sell stock photos.

The only trouble is licensing your photos, but after that, you can technically make money forever. Simply add your photos to a platform, and you’ll earn a commission every time people download them. Of course, the platform will take a small percentage.

Create an App

Everyone’s glued to their smartphones nowadays, so creating an app is an easy way to make extra income. However, you’ll need programming and development skills if you really want to save money. Otherwise, you can bring your idea to a freelance development team.

Either way, once you upload the app to online stores, you’ll bring money in every time someone downloads it.

Rent Out Spare Rooms

Are you lucky enough to live in a home or apartment where there are spare rooms? Are they just collecting dust, and you’re not doing anything with them? Then turn these spaces into cash.

You don’t have to be a homeowner to do this either. Ask your landlord if subletting is allowed, and if so, proceed.

The downside is that if you value your space and privacy, this can negatively impact your quality of life. On the flip side, you might make friends with your new roommates! And they can be some welcome company if you’re lonely.

If this doesn’t sound ideal to you, then an excellent compromise is temporarily renting out your property. For instance, if you’re going on vacation, or if you’re staying at your partner’s place for an extended period, rent out a room or the entire home/apartment to short-term visitors.

Buy Rental Properties

For those fortunate enough to have lots of disposable income, buying rental properties is a wise investment, especially if you’re somewhere where the housing market is hot.

In the best-case scenario, you’ll have stellar tenants who will take good care of your units and alert you immediately when anything goes wrong. But even so, you’ll have to spend time and effort on upkeep. And if you have terrible tenants, it’ll be a nightmare to deal with.

You can always use the services of rental property management companies. They’ll take care of everything from advertising to collecting rent and evicting renters if needed.

Invest in Stocks

Stocks can be risky. However, if you do them right, you’ll be rolling in cash!

It can take a lot of reading and research to get into stocks, so it’s not appealing to all. You’ll ultimately be rewarded though, especially if you play the long game.

You’ll see the benefits of investing over years, so it’s not fantastic if you want to generate regular passive income. Consider pairing this idea with others to get a steady stream of revenue.

Invest in Cryptocurrency

In addition to investing in stocks, you should also put some money into cryptocurrencies. Diversifying your profile is always a great idea, and you’ll have digital assets in addition to fiat currency.

Considering that almost all cryptos’ values depend on Bitcoin, that’s a good one to get into first. It’s the priciest one though, so make sure you can afford it before starting.

Investing in cryptocurrency should be a long-term thing, so don’t panic when prices dip. This is normal, and you can expect the value to rise again soon after.

Eventually though, you’ll need to know how to withdraw Bitcoin to cash out, so to speak. Learning this now is beneficial, as it’ll enable you to quickly withdraw when the price is right.

Try These Ways to Build Passive Income

Now you have several ways to build passive income. Depending on your existing skill sets, some will be easier to do than others.

The beauty of building passive income is that you can mix and match methods. That way, you can put in minimal effort to generate maximum cash. And as a result, you can decrease stress while padding your bank account.

So if you’re tired of the rat race, look into passive income. It’ll take a load off your shoulders, and you’ll be able to achieve goals that were previously unattainable.

Check out the rest of our blog page if you want to learn how to earn more money.

Leave a Comment