Nowadays with the high cost of living, it has become tough to make ends meet. Not only that, the standard of living too has dramatically increased. What was considered a luxury a few years back has now become a necessity. Because of this, many are forced to work overtime, and some have need to take up a second part-time job. This, of course, may sometimes be not legally possible. So what is the best way to earn some extra income without any legal hassles? The answer is passive income generated from home. What is this Passive income? Residual income is another name for it. In short, it means money earned on a regular basis with some or no effort. Simply explained, many people work in the office from 9 to 5 and make money. Passive income is money earned even when you are not physically present.
The important thing is that it usually needs two main things: The first is to Invest Money. This means that if a person has idle money or excess cash, that amount can be invested and interest gained. So this is like making money work for you. The second important thing is Invest Time and Effort. This is to build a passive income asset, and the long term rewards will be high.
There are different ways to earn passive income. Some of the successful ways are:
1. Having a high-yield Savings Account:
There are many banks that offer a high rate of interest in return for keeping the cash for a fixed amount of time.
2. Crowd Funded Real Estate:
If you own a property, then it generates rent, and also its value increases over time. This results in good returns. For those who want to start off on a small scale can rent out a room in the house.
3. Investment in Stocks:
This is actually one of the oldest and best ways to earn passive income. By investing in stocks that pay quarterly dividends, cash flow can be generated without much work.
4. Lending Peer-to-peer:
Also called “P2P lending”, this is a new method to lend as well as borrow money. It works by bringing people together that are those who have the money and those who need the money. In return the interest is earned just like a traditional bank.
5. Affiliate marketing with Blog:
This is another way to earn money by promoting other companies’ products or services and earning a commission from the sale generated. This is done by writing a blog and receiving commissions from the advertisements etc. So as long as people read your content, you can earn passive income.
6. YouTube Channel:
This is fast catching up especially with many youngsters. People can make videos about anything from unboxing items, beauty tutorials to cooking and so on. Advertisers will pay for placing their ads just before your video. However, there are certain conditions such as achieving a certain number of views and so on before the cash can be actually earned.
These are just about 6 ways to generate passive income. There are other ways too, such as Cashback Shopping. Initially this may not sound interesting. But the fact is that a considerable amount of passive income can be earned just by availing the cashback rewards offered by credit cards or online shopping portals
On a concluding note, making passive income will not solve the financial problems completely. But it’s a right and one way to start. And the prospects of generating passive income are endless today due to advancements in technology such as the internet, for example.