5 Ways To Make Passive Income In 2022

Making money while you sleep is a dream for almost everyone. It’s always a great feeling to earn money with little to no stress, especially when you are hammering at a 9-5 job or running your own business. It would be wonderful to build something that operates itself for a change after hours of labor, sweat, and tears, wouldn’t it?

As we continue striving to achieve our financial goals this year, having a few streams of passive income can be a good way to make achieving these goals easier and more enjoyable. This article will take you through what passive income is and ways you can set yourself up to gain from multiple streams.

What is Passive Income?

Passive income is money earned without putting in a lot of work. Note that I didn’t say any work at all, because like every other money-generating venture, it would require some time and effort to get things running. You won’t have to work on your passive income stream every day once you’ve identified and established it, but that doesn’t mean you won’t have to put in some effort every now and then. If you play your cards right, they could eventually earn you money while you sleep.

Why Do I Need Passive Income?

To say the least, passive income is appealing—and it can be a useful tool in achieving financial security. The term “passive” indicates that securing and maintaining a consistent income requires little time and effort. What’s not to appreciate about that?

No matter how much you love your job, I am sure you wouldn’t mind having some extra money come in without the hustle and stress your regular job takes. And although passive income won’t make you a billionaire overnight, it can help:

• increase your wealth
• protect you from complete income loss in case you lose your regular job
• provide you with an additional source of income

5 Ways To Build Passive Income

There are so many streams of passive income to benefit from, both physically and digitally. As exciting as earning passive income sounds, it requires a lot of thought processes in order to find the streams that work best for you.

Before delving into any passive income stream, it is important to understand your risk tolerance level. Some passive income streams like stock investing and real estate investment will require some financial commitment upfront and might not give you returns immediately. Such streams are not recommended if you’re a risk-averse person, instead, you want to move towards income streams that will require little to no financial commitment. Here are some passive income streams to consider:

Start A Blog/YouTube Channel

The internet has become the number one place to find information on anything all over the world, and this has created an avenue for people to benefit from sharing information that will be used by others.

If you are an expert in a particular field or industry, you can make money by starting a blog or YouTube channel and sharing your knowledge with useful topics. If your content is useful and generates enough traffic, you can rack up quite a few bucks through views, reads, or paid ads.

Bear in mind that this stream of passive income is less passive, which means it requires more work to get you the results you want, especially since the blogging and YouTube space is very competitive. To get results, you need to create content regularly, promote your blog or channel in multiple streams and monitor your progress regularly so you can improve.

You can re-distribute your blogs to different streams for more views and possibly more income on-site like Medium, Vocal Media and Substack. These sites pay you based on certain criteria like the number of articles you write and the number of people who read your article.

Join Affiliate/Referral Marketing Programs

Have you ever bought or used an amazing product or service and couldn’t help but brag about it to your friends, family, coworkers, and even complete strangers? So much so that you begin to think “Man I really should get paid for all this advertising”. Well, the good news is, you could actually get paid for this through affiliate marketing.

Simply explained, affiliate marketing is when a business pays you money to promote its items publicly. If you’re on social media, you’ve certainly seen hundreds of individuals do this by putting a unique link or discount code beneath a photo of themselves using a particular product.

A lot of popular companies use affiliate marketing as one of the ways to promote their products and services to the world because it is a win for all parties. You bring more clients to them and they pay you a commission for any sales that comes through you. Some companies that make use of affiliate marketing include Airbnb, Amazon, Canva and Shopify.

To get started, you need to find out whether the company you are promoting has an affiliate or referral program set up and register. Advertising their products and services without joining their affiliate program will not bring income, so you need to be sure before you start.

After you register and you are approved, you will have access to a unique link or code which you can share with others who might want to patronise that company’s products or services. This unique link/code usually gives the prospect a discount or free trial of some sort to draw them in and if they love the products after this and pay for it, you can earn a commission on the sale.

Affiliate marketing is another “less passive” income stream that requires a lot of effort in order to get results. You can benefit a lot from this is if you already have a large following on any social media platform or blog site. But if you do not, you have to put in the work to get the word around and even invest in ads for better results.

To make the work easier, start by looking for local company affiliate programs as they are usually much easier to promote within your circle. A good example of this will be Kazi, which offers its affiliates up to 20% commission on sales they bring in.

Sell Digital Assets

You can make good money selling digital products like high-quality photos, e-books and even audio jingles online. As the creator economy continues to boom, a lot of content creators are looking for digital products that they can utilise in their work. If you are a sound artist, photographer or avid writer, you can take advantage of this to sell some of your work online and get paid royalties when they are used or purchased by third parties.

Platforms like Unsplash, Freepik and Getty Images are great places to sell photos and digital art. Amazon and Gumroad are great if you are selling e-books and Envato’s Audio Jungle is great for selling audios and jingles.

All you need to do to begin is to register as a seller on these sites, get approval, license and upload your content and wait for third parties to use your content while you get paid for it.

Invest In Funds And Stock

When some individuals hear the term “passive income,” they immediately think of investing because it can yield the most profit with the least amount of effort. That is true. Investing may be the simplest method to kick back, relax, and earn when compared to the other options on our list.

However, this is a long term passive income stream that you can utilise for the future. Waiting till you’re 60 to touch your money may sound horrible if you’re in your 20s or 30s, but if you are able to do this properly, you could have enough money way before then.

It is important to work with trusted investment agencies and advisors when getting started. Always make sure you understand what you are investing in and keep a keen eye on your returns. Never invest in things you do not fully understand as it is a fast way to lose cash rather than gain.

Rent Out Property

If you are a property owner (car, land, home, etc), you can make some money by renting out your property every now and then. There is always someone out there looking for a place to stay for a night or two or a car to rent for a few hours and you can make good money if you have any of these resources to spare.

If you have a spare room in your house, you can rent it out for a couple of days or weeks (it all depends on you). You can also rent out your car for a number of hours on weekends if that is something you can afford to do.

Remember, this requires being extremely cautious and keeping a keen eye out for fraudsters and potential thieves. Make sure to set rental rules and be strict with them. You can make use of Airbnb if you’re looking at renting out your home.

Always keep in mind that passive income is not a get-rich-quick scheme. Avoid any advertisement online that might promise you this. Instead, it provides you with an avenue to make money without the stress that a typical 9-5 presents. Make sure to carefully choose which avenue works best for you before you begin.

**This article was originally posted on Bloop Global's blogsite.