Ways that you can start making a passive income today
Most of our earnings come from activities in which we are directly involved, this means that for us to make money we must put in effort to maintain cash flow. However, there are ways through which you can earn an income with little effort. This means that for the cash to flow we are not required to spend all of our time working. This is the world of passive income, earning without being actively involved.
When most people need extra income, they resort to a business or a part time job; all these activities require that you spend time working. This may not work if you don’t have the energy or time to put in the extra hours. In that case, you need passive income ideas, ways through which you’ll earn more with little investment in terms of effort and time.
Here are three ways through which you can earn passive income
Investing in stocks
Although some people term the stock and security market as volatile, when you get it right, you can make good money with little time and effort. All that you need is a good understanding of how the securities market works. You buy when the prices are low and sell when they are high.
Let’s say that the prices of a security are at ten, if you buy at this price and wait for it to rise to 15, you will have made a profit of 5. If you had one million in terms of stock, you’ll have made a cool five million. Also for the duration that you’ll be holding the stock, dividends will be earned, increasing the income derived out of this investment.
Cash back rewards on credit cards
You may be using credit to buy; you can earn some money out of it. This is through rewards and bonuses that are issued on a regular basis. With each usage of your credit card, you could earn points which can be redeemed and use the cash to make payments. This is an amount that you earn with little effort, and it plays a significant role in reducing your debts as well as ensuring that you have a fall back plan when you run out of cash.
Monetising skills and hobbies
If you have a hobby such as photography, you can earn some money through posting your photo in sites such as ShutterStock. You may get some regular income, the money will flow and little effort has been put into this.
With these and other passive income streams you could be earning money even when you’re sleeping.