Ever dreamt of a retirement in which you don’t think about how much you earn? Ever see yourself making money without burning hours off at an office? If that’s what you think of, then you might want to start earning through passive income. We will give you the definition of passive income, how it can benefit you, how it can be in the long run; literally, everything you need to know about running a business that earns you an amount of money that you don’t have to spend hours on.
In this article, we will focus on the overview of passive income and how I can generate passive income. We will tackle the other topics on a separate article.
Overview of passive income
- Can a normal person earn from business and through passive income?
- How can I have a business that generate passive income?
Overview of passive income
Let’s start by defining what passive income is. Basing it on the definition, passive income is a string or source of income in wherein the money works for you. It is a regular source of income wherein you receive money on a standard rate. Although this is the case, there are scenarios where your returns can be lesser. On the other hand, the profit you will gain can actually also depend on the performance of your business. So, it can exceed what your expectations are.
Can a normal person earn from passive income?
Definitely! As a matter of fact, this is where rich people start. Most of the time, the rich and the wealthy don’t start out how they are now. They work their way up the ladder and they do that by moderating their steady stream of profit through their businesses that give them passive income.
Having that said, anyone can start a business and earn income, but they need to work for it. At first, you may have to check on your business every now and then but if your business grows, you can be laid-back and just watch how your business and your money work for you.
How can I have a business that generates passive income?
Doesn’t it sound good? Making money while you sleep? It’s definitely everyone’s dream and if you think about it, it’s definitely a good retirement plan. There are many ways on how you can earn passive income. Let me give you a few examples of what I’m talking about.
Passive income through blogging (Writing/Freelance)
One of the main basic things or businesses that can earn you a decent amount of profit is through blogging. Although this is not something that can just happen overnight. You need to invest time and effort; you need to build your reputation. If you’re fond of starting a blog or a website, let 1 year pass without something happening. Make sure that inside that 1 year, you will become credible. Say you get more than 5, 000 readers and subscribers in a year and from that, you can apply to Google Ads and have your website run for their sponsors.
Another thing you can do is you can set up your website to be a website for ads. It can be a website wherein you can have brands and companies to post their advertisements on your website.
Read: Want To Start A Business But Confused On What To Do? Here Are Tips On How You Can Find Out What’s For You
Create Youtube videos with interesting content (Entertainment/Youtube)
If you’re fond of watching entertaining videos on Youtube, then making interesting, eye-catching content could be a very good source of income. Did you know that a lot of Youtubers quit their job and did Youtube full-time? This is because of the lucrative pay of Youtube as passive income. Imagine, creating content and even after the hype, people will still find your videos.
Real estate or through renting (Classic businesses)
One of the classical ways of generating passive income is by renting out a space that you own. If you have a house that you’re not using, then you can probably earn a decent amount of profit from that. If you have owned land that is unoccupied, you can have it leased or have a commercial establishment rent from you.
Read: How to Network your Way to Job Success
There are a lot of things or businesses that can generate passive income; there are multiple things you can try and do. If you’re good at writing, writing a book/manual/guide and putting it somewhere for sale could be good for you; if you own land or a house that is not being used, you can have it rented; if you have a technical skill, you can record a course and give it to students online where they need to pay to access the course.
As you can see, passive income is something that all people dream of. You may have to invest heavily during the first few years but the time will come when you don’t have to lift a finger in order for you to earn what you want to earn.