2020 was a tumultuous and difficult year we all endured. This past year taught us that multiple streams of income is not a luxury, but rather a requirement. Ultimately, having money saved in the bank can be a lifesaver in case of emergencies. What better way to maintain money in your account than to have your money work for you, instead of the other way around. This is also known as passive income. Let’s explore a few ways on how to generate your income.
According to Money Talks News, “passive income includes regular earnings from a source other than an employer or contractor.” Wouldn’t it be phenomenal if you can make money while you’re sleeping? In fact, there are a wide range of options to choose from: investing in stocks, owning your own business, purchasing rental property and so forth. All you need is extensive and intensive research to stay financially fit. Here are four ways to get started:
1. Dividend Stocks
You invest your time, your skill set, and health into your job by working for someone else. Meanwhile, why not invest in yourself by purchasing stocks. Money Talks News reports “Companies pay cash dividends on a quarterly basis out of their profits, and all you need to do is own the stock. Dividends are paid per share of stock, so the more shares you own, the higher your payout.” People can invest in the stock market by doing the following: use cash and pay a stock broker a small fee to advise what to do with the investments. Also, investors can use online platforms such as Cash App, TD Ameritrade, and WeBull. Finally, potential investors can earn passive income in bitcoin if the market is too volatile for them.
2. Selling Information Products
What better way to build your own wealth than to sell your products. Tap into your entrepreneurial spirit by writing your own e-book, developing an online course through Coursera, or starting your own YouTube channel to expand your audience and advertise your content. Watch the money flow through the sales of your product.
3. Affiliate Marketing
Are you the next Instagram Influencer or TikTok sensation? If so, make money by keeping your account thick and heavy through affiliate marketing. Affiliate marketing is an alternative for bloggers and social media influencers to promote a third party’s product they’ve partnered with by adding the affiliate’s product link to their site or social media. For instance, you can partner up with Amazon and feature their products on your site.
4. High-yield CDs and savings accounts
If you want to play it safe by allowing your bank account to grow overtime, check out high-yield certificates of deposits (CDs [not the ones you play music in]) and savings accounts. NerdWallet says, “Most online banks, credit unions and nonbank providers (often apps that partner with a bank for FDIC insurance) have slashed their rates in response to the Federal Reserve's emergency rate cuts. But the high-interest savings accounts detailed below continue to offer some of the strongest yields available. These accounts can help you boost your emergency fund.” After all, the turtle does end up winning the race.
Life is more than just getting a job to make ends meet. Nowadays, one must be certified or specialized in a specific field/industry or have a college degree to obtain a lucrative job. This is about gaining ownership of your life. How does one obtain ownership? People do this by owning assets and making money. So ask yourself, do you want life to own you or do you want to own your life? The choice is yours.
For more information about passive income, click here on how to maximize your earning potential on your terms. Remember, in order to prevent life from becoming a liability, own things that make you money so your life can be an asset to yourself and others.