Rich Dad Poor Dad author Robert Kiyosaki once said: To obtain financial freedom, one must be either a business owner, an investor, or both, generating passive income, particularly on a monthly basis.
What are the best ways to generate passive money online? The short answer is that it depends. It depends on your capital, skills, goals, and objectives. In this article, we’ll help you decide the best ways to create passive streams of income online. Let’s get started.
Invest in Stocks, Bonds, and Crypto
Of all the ways people make passive income online, investing in financial assets is the most popular option. It’s simple. You take your savings and invest them in stock, buy government bonds or Bitcoin. Then you forget about the money for a while in the hopes that it grows.
Investing in stocks and crypto is great because it requires little capital. On trading sites like Robinhood, you can invest as little as $10. Of course, you need to invest a lot more if you want to get rich in the long term.
Also, buying stocks and bonds isn’t a guaranteed way of making money. If you buy shares from a company that later suffers a major setback, the value of your money will go down.
Another challenge with investing in shares and crypto is that it’s not easy to pick stocks that will gain value over time. This is why many experts encourage independent investors to invest in ETFs like the S&P 500.
Exchange-Traded Funds are a collection of stocks. For example, you can buy an ETF centered on tech stocks. When these companies grow, your ETF stocks also grow. If one of the companies fails, you don’t risk losing much money since other stocks will probably perform well.
Passive Income Apps
Passive income apps won’t make you a millionaire. But they can help pay for your Netflix subscription, buy weekly groceries or pay for a dinner date. In other words, you can make an extra $20 to $500 through these apps.
Now, every passive income app is different. For example, Rakuten recommends shopping sites to you. If you shop at one of these sites, the app sends you a small cashback as a reward.
On the other hand, Honeygain runs on your computer or smartphone background. It shares your unused Internet bandwidth with other online businesses that use this bandwidth for various localization purposes. In exchange, Honeygain pays you credits you can redeem for cash.
There are a lot more apps that can help you make some pocket changes during your free time. Some of them—Survey Junkie and Swagbucks—pay you to watch online adverts or complete surveys. Others run in the background to help you save money during shopping. Or they collect your data legally for pay.
Sell An Existing Skill Online
Selling personal skills pay highly on the Internet. Think of professional video game players. They do what they love the most to entertain millions of fans. In exchange, some of them have become millionaires before earning a driver’s license.
In other words, any skill on-demand online can make you passive income. Let’s say you’re a good storyteller who works as a makeup artist. You could run a YouTube channel where you teach makeup while sharing stories with your audience.
Maybe you’re a college student learning computer science. You could sell your services on freelancing sites like Upwork and Fiverr. Selling your skills is a great way to make money because no capital is needed.
What’s more, you can upscale it into a full-time business. You could even start a website where you employ people to help sell your skills online. For example, an app programmer could hire other coders to help finish projects quicker and share the profits.
Create Online Courses
Nowadays, people are skipping college to learn new skills through short online courses. Guess what? You can be the person selling courses to online learners. All you need is to figure out what’s on demand that you can teach.
Assuming you’re a language teacher. You could create a course targeting new English language speakers. You will need to break down your course into different sections and be detailed and informative to succeed.
Regarding the pricing, it will depend on where you sell the course. Udemy.com, for example, takes care of sales and shares the profits with you. However, you could sell your course through a personal website and decide the charges.
Start an Online Store
Ever wanted to become an online entrepreneur? It’s easier than you might think. Starting a website costs less than $200. Stocking your store might cost another $500, and that’s it.
In fact, you do not have to buy stock for your store. Let’s say you start an on-demand T-shirt website. You could grace your website with beautiful photos of personalized T-Shirts. But you print these shirts only when someone makes an order.
Another way to sell products online without gathering capital is to dropship. Put simply, dropshipping involves marketing products online. When someone orders them, you buy the products cheaply and sell them at a profit.
Dropshipping is one of the coolest moneymaking opportunities of 2022. But it requires hard work and patience. Also, consider learning more about how it works before you get started.
Become a Blogger o YouTuber
With many passive income opportunities, you need to put in some effort before the results kick in. Blogging and creating content on YouTube is no different. If you start a blog today, it will take you up to six months before it starts to rank on the first page of Google.
If you start a YouTube channel, you will need to accumulate 4,000 watch hours and convince 1000 people to subscribe to your channel before you can make money.
It’s the same case with social media content creation. You must work hard to earn genuine followers before you can think of making money. But once you have the followers, creating passive income will become easy. That’s because you can negotiate competitive rates with companies that will pay you to market their products.
