A passive income is a source of revenue that requires little to no effort to maintain. In some cases, an initial investment may be necessary, however, once this investment is made you may be able to earn money without lifting a finger. Below are 7 different ways to develop a passive income.
1. Use a high interest savings account
Most savings accounts allow you to generate interest on your savings. High interest accounts allow you to earn the largest return off of your savings and can be one of the most secure and simple ways to create a passive income. It’s worth shopping around to find the highest interest rates. Be wary that some accounts may have requirements in order to earn interest such as a minimum balance or a minimum contribution each month.
2. Try investment strategies beyond savings
There are many investment strategies beyond a savings account that can earn you money off your savings from peer-to-peer lending to CFD trading. These strategies tend to be more risky, but often you have the potential to make a much larger return. By diversifying your portfolio instead of investing in just one stock or one index, you can usually spread the risk, reducing the chance of any major losses and increasing the chance of a stable return.
3. Make ad revenue through a blog/vlog
Another form of passive income to consider could be ad revenue. By starting a blog or a vlog, you can then choose to display ads. Every time someone clicks on these ads, you can make revenue from it. The more visitors/viewers you attract, the more money you can make. You generally need to reach a certain amount of visitors or views first before you can start accepting revenue. This is the hard part – only by creating engaging content will you build these visitors and views.
4. Make money through royalties
You may be able to earn a passive income through royalties. This involves charging people a small fee for the right of using your music or images. Songs earn royalties every time they are played on the radio or streamed, while images may earn royalties every time they are purchased by a third party. Making a lot of money through royalties isn’t easy as it involves creating a song or image that’s popular enough to grab thousands of people’s attention.
5. Use cashback sites to shop
Cashback sites allow you to make purchases online while getting a small amount of cash back on each purchase. If you do a lot of online shopping, this could allow you to earn money simply by shopping online.
6. Sell your clutter
You can also earn a passive income simply by selling possessions in your home that you no longer need. By selling clothes and old toys you can make a lot of extra cash each month.
7. Get paid to search on Google
There are even extensions that allow you to get paid by searching the web. These extensions show ads alongside some of your searches – by clicking on these ads, you make a few cents. This could add up over time allowing you to make a few extra dollars.