Surely everyone’s dream is to make money whilst they sleep, right? Having a way to earn money without actually having to do anything is highly sought after and yet rarely actually understood. I’m going to share with you The best passive income investments
What are passive income investments?
Passive income is a source of earning that no longer requires involvement. So the income stream continues to generate an income even after the work is complete.
A general example of this is a film. It continues to create income even after filing has finished.
Passive income investments are hands-off. Plus they allow you to make money whilst you are no longer actively working on that income stream. You could be walking the dog, sunning yourself at the beach or even be asleep and the income stream just keeps getting you money.
There are three main types of income: Active income, passive income and portfolio income.
Active income – This is the day job. Goods or services sold/provided by a company. It’s generally any type of income where you only get paid when physically being there or by selling stock.
Passive income – as detailed above, this income stream means the project keeps earning you money when it is complete.
Portfolio income – this is generally lumped in with passive income but it is different. This is earnings that come from investments, dividends, interest and capital gains.
Its an investment of sorts
It turns out the dream of sitting around doing nothing and getting paid isn’t actually the reality of a passive income stream.
An investment of some sort has to be made in the beginning. in order for you to get paid whilst you sleep.
The investment can be time or money (its usually both!). Passive income streams have to be cared for and nurtured in the beginning in order to produce an income later on.
Usually, shed loads of hard work is required in order to build up your passive income streams to be able to look after themselves and generate an income.
Choose your level of investment
How much work, time and money you want to put into your passive income streams is all down to you.
I never really liked spending money in order to set up a project early on in my earning online adventure.
Whilst its great to be cautious with money, this mentality actually stopped me from earning money! If you have a little bit of money and you are willing to invest a lot of time and hard work, then setting up passive income streams are completely possible.
Passive investment ideas
The exciting bit! Finding out which passive income stream is for you! Remember that the term passive is somewhat misleading. It sounds like you don’t have to do anything which isn’t true. You need to invest in your passive income streams in order for them to grow:
Stocks and Shares
As mentioned above this is actually portfolio income. It usually gets lumped into the passive income group but it does deserve a mention.
The only real investment of time for this one is research. This is for deciding which level of investment is for you and who you’re investing with. After this, its purely financial investment that is required.
This one is as close to passive as it gets. Keep building up your fund and eventually, it will be able to fund your cost of living! I’ve recently written an article all about online investing.
You don’t even really need to know much about stocks and shares. There is a way to invest automatically by using a Robo-advisor. The clue is in the name on this one and it is literally a robotic financial advisor.
Please do more research into stocks and shares if its something your interested in!
Renting our properties
This one takes some serious cash investment in order to get set up.
Once the initial investment is made though and the rental properties are bringing in an income then to truly make it passive, its time to outsource the running and day to day jobs to a management company.
This is another one that really embodies the “passive” we all think of when dreaming of a passive income.
If your not looking to invest a huge sum of cash and prefer to get started using hard work then affiliate marketing is the one for you! I’m a massive fan of affiliate marketing and I make a really good passive income from doing it.
The only upfront costs are hosting (Siteground or BlueHost are the top picks for this) and buying a domain name. Affiliate marketing isn’t the easy option as it takes a lot of hard work, time and patience in order to see any money at all.
Most affiliate marketing sites take between 6 – 18 months before they start earning an income and it usually starts off pretty small. Don’t let that put you off though, whilst its a lot of work at the beginning once the site is set up and established it looks after itself.
I schedule all my posts for my affiliate sites so I only have to do a bit of work every so often but there is also the option of outsourcing it to make it completely passive! If you are happy to invest financially in the beginning then affiliate marketing can be completely passive!
Write and publish a book
If writing is your thing and you have a way with words then writing and publishing your own ebook can be a great way of earning passively. Obviously, you have to write the book at the beginning which takes time but after it’s published it will keep bringing in an income for as long as it remains published.
Writing an ebook has been recorded at taking around 20 – 30 hours. If you prefer a step by step guide to writing and publishing then check out this guide that teaches you how to do it in just 21 days! (read it free here)
Don’t forget to create a visually pleasing book cover in order to really sell your masterpiece. If your not artistically gifted then you can easily outsource it and get your own customised book cover.
Take your income to the next level
Creating passive income investments doesn’t have to be too costly or time-consuming and hopefully one of the above ideas has proven this. Whilst there are lots more ideas, these ones have been proven and I have has success with the ones listed here.