Quick question: do you pay yourself first or does someone else get paid before you? How important are you to yourself? Most people would answer “very important” I hope. Yet,...
I thought I´d start off the year with some great passive income ideas on how to create passive income streams in 2016.
Probably one of the most common passive income ideas out there.
Maybe you have a vacation home that can be rented out when you are not there?
This can be done effectively using companies like Airbnb (Affiliate link).
Friends of mine have used Airbnb and it has shown to be highly profitable.
Maybe you live in an apartment with a spear bedroom that no one is using, why not rent that bedroom out to get your passive income streams start running. It might be a little uncomfortable at firs but that extra income will make it possible for you to get other assets that create more passive income. I´m not saying this should be the way to go, I´m just saying it´s a possibility, a lot of people complain that they don’t have money to invest.
Maybe you own a house or a condo, It´s possible to get a rental place instead and then rent out your house/ condo for a steady passive income stream every month.
Or if you live in a rental unit at the moment you can buy a house or a condo and just rent it out. A good idea might be to team up with some likeminded friends and buy one together. That will make the capital amount needed per person smaller and you limit your risk. There is a lot of more benefits like having someone to discuss plans and problems with, setting goals together and analyzing investments. It will also be easier to get a loan from the banks with good conditions if you are more peoples (with incomes) in the deal.
Airbnb can also be used to rent out the extra bedroom or your house/apartment when you are on vacation. It´s a really easy way to make passive income then maybe you can use the money to make more passive income.
Write a book
Do you have something that you are really good at, or have a huge interest for?
Do you believe that you know more about something than most people do?
Good, then you qualify for writing an E-book about it. Information is very valuable these days and people are prepared to pay for it. You can basically write about anything as long as there are competitors in that niche. I even heard that there is a book called something like “a hundred kinds of poo”. If someone can write a book about poo, I think it´s safe to say that writing a book about anything is ok. The book only need to be about 30+ pages or so, as long as it fills the value for the reader that you want to give them with your knowledge.
Once the book is ready you can sell it on amazon kindle for a couple of bucks each, market it well and have good content and people will download your book. If it´s good and not something that will run out of date you can have a lasting passive income stream for years.
Making a crazy stupid YouTube video
This is the most special of the passive income ideas, and maybe the hardest to do.
In the past years so many people have been getting rich from making YouTube videos. Stupid, idiotic, crazy, wild and funny things on video that is posted it on YouTube. They´ve gotten millions of views, put advertises on the videos and made a ton of money. That is also passive income flowing into their bank account every time someone checks out their video.
If you are a bit creative anything’s possible here, if you just have the idea but not the skills you can always have someone create the app for you. Apps can be sold for profit or they can be free and contain ads in different forms. When someone buys your app you will make, yeah that’s correct, passive income.
Rent out your car when you don’t use it
Nowadays there are agencies for everything including renting out your car, with insurance and most things take care of. I know there some company called Turo in the US and another called Easycar club in the UK, I think most countries have developed something like this by now. If your country doesn´t have it I think you might be in luck, then you can team up with someone who have good expertise in the webpage building area and create a system like that on your own.
It´s also possible to just buy an extra car and rent it out, if there is a high demand in your area, why not get one more?
The more sources of passive income the better.
Invest in a partnership in an oil well
For US residents this is one of the passive income ideas where there are tax advantages, when you invest in oil wells. I think the minimum investment is about 10000$. I haven´t really looked into this myself but I´ve heard of people investing in oil wells, they both get god returns and great tax advantages.
Network marketing/affiliates programs
Network marketing is another of the passive income ideas and is something that everyone should try and commit to at some time, and the reason for that comes down to one word, education. The education has some similarities with a sales education but ads a lot of other valuable knowledge and experience. Some of the very important things that you need if you want to succeed in real life, things like being open minded, people skills, to be a leader, discipline, prioritizing and developing a winning attitude. When it comes to the passive incomes with network marketing the process is longer, I works like any other business but basically without any risks at all. It’s a good way to start learning about how to create a business because of the minimal risks and the training that you will get.
Something similar to network marketing is affiliate marketing. To recommend something that you like and use to others and then get a small cut of whatever sales you create. For example: If you have been on a really nice package trip vacation using some agency and you think they did a great job throughout your trip. Chances are that you would tell people about that. If that agency have an affiliate system, everyone that heard your stories about the trip and like to book through that agency using your affiliate details will make you get a small commission on the sales. Just like with the network marketing systems and in all other companies’ products and services, the expenses for marketing is already counted into the price, every company market their products in different ways. Some like to feed the billionaires owning cable companies and newspapers etc. others like to give private individuals the chance to make an extra income stream from recommending something that they use and like.
Dividends from stocks
If you invest in stocks in companies that are going good and show big profits chances are that you will get a nice passive income in the form of dividends. Companies pay out dividends to stockholders once a year based on how well it has gone for the specific company the year before.
You can also invest in Preferred stocks that usually pay out dividends more frequently than once a year and have a preference in dividends. That means that if the company is going to pay out dividends, it has to pay the preferred stock holders before the regular stock holders.
With options you are able to make money if the market goes up, down or sideways and that is with limited risk. Of course this will take a little more education in fundamental and technical analysis but it could be one of the best passive income ideas so far. If you want to learn more about the different passive income ideas in the stock market I strongly recommend the book Stock market cash flow written by Andy Tanner.
Financial education will be your best source of making better financial decisions, with the right kind of education you will see things differently and become more creative. The best investment you can make is in yourself and your education. If you commit to take 30 min of your day every day for the rest of this year to spend on your financial education, I can say with confidence that things will start to happen in your life. You will start to have a lot of passive income ideas, for sure.
Passive income together