The cost of living is increasing by leaps and bounds almost everywhere in the world. But unfortunately, wages and incomes aren’t keeping pace with the increasing price of things. So, everyone now needs to have a secondary source of income if they want to make ends meet.
But having a second source of income is easier said than done. Keeping up with the pressures and stresses of a single fulltime job is hard enough, if you add a second job to the equation, the situation can become quite unmanageable. This is where, passive income streams come into the equation.
There are many active and passive income streams that you can choose from, but in the long run passive income options are better suited as you will not need to keep an eye on things, round the clock, but before you get into anything, you will need to do proper research and if that is your intention, then you have come to the right place.
Let us take a look at some of the best ideas for passive income.
- Get rid of loans: you may ask, how does paying off loans qualify as income? After all you will have to shell out a lot of money if you want to get rid of your loans. You may even have to dip into your savings. Look at it this way: if you pay off your debts, then you no longer have to pay interest to your creditors. The money you save in interest payment can add up to quite a big amount. If you are not in a condition to pay off your debts completely, consider consolidating them so that you can benefit from a lower interest rate.
- Invest in stocks: yes, it can be risky. But the risk factor applies only if you are looking to make a quick profit. If you invest in a diverse portfolio and have the patience to invest for the long term, then most risk factors will be mitigated and you can look forward to a steady income in dividends, not too far in the future.
- Make use of your experience and expertise: no matter what field you work in, you must have some knowledge that others don’t and a lot of people will actually pay to learn those things. So, you can create online courses in platforms like Udemy. The time invested will be well worth it as you will be reaping the benefits for as long as the courses remain relevant and people are interested in taking them.
- Try your hand in P2P lending: if you have some extra cash lying about that you would like to invest, then P2P lending might be the best way to reach your passive income goals. The idea of P2P lending is that you lend money to a person who might otherwise not be eligible for loan from financial institutions owing to various factors. The returns are pretty good; around 11% or above, and there are certain platforms that allow you to undertake p2p lending with no risk to your money. You can withdraw your money at any time you need it.
- Create e-books: this is a great way to make money. You will keep getting royalty payments for years to come, if you can create a relevant e-book with quality content. You can do this in conjecture with an online course. That way you can have two sources of income in one go.
Of course, these are only a few of the many different options for passive income that you can consider. Just remember to do your due diligence before starting anything new.