With the current cost of living crisis, increasing your income streams may be of interest to you. Here's several ways how you can make passive income work for you.
What Is Passive Income?
Passive Income is described as an automatic income that is earned with minimal labour or work. It usually is known as a 'side job', obtained alongside another income source. Having a passive income stream can be a great source of extra finance, especially with inflation rates soaring. Below are some suggestions of how to earn passive income, with a range of investment capital depending on your situation.
1. Financial Investments
There are several ways to invest your money such as investing long or short term in the stock market, bonds and virtual currencies. You may be interested in investing in dividend stocks, where you get regular payouts on company profits. Or you may be in it for the long haul, and put your money into a stocks and shares ISA account, where it grows exponentially over a several years. Trading platforms such as Etoro allows you to invest without paying any fees to the company.
Think you need a large amount of money to start investing? Think again. Depending on the types of financial investment you choose, many options do not require a large deposit and can be relatively low risk! Financial Investing can come with risks so be sure to thoroughly research which method is right for you, or talk to a financial advisor.
2. Affiliate Marketing
Have a large social media following? This method may work well for you.
Affiliate sales are generated when someone clicks on a link from your website/ social media and purchases the product. There are many businesses who have affiliate schemes which are free to sign up. Once signed up, you will be given a unique code or link. The company will then pay you a percentage per item you sell through people using your link. You may highlight your link via your social media channels or perhaps if you have a website. You can also create a new social media channel dedicated to your affiliate links by choosing a niche. For example, you may be interested in pets and create a Tik Tok account advertising dog beds and accessories, each with an affiliate link. Be creative!
3. Sell Stock Photos
Interested in starting your own photography business? You don't need to be a professional photographer to sell photos. You can sell your original photos as stock images on websites such as Shutterstock or Adobe Stock. This requires no start up cost, as photos can be taken on a camera or even a mobile phone. It also means you do not need to have a large amount of followers for your work to get noticed.
4. Invest in a rental property
This requires a large investment, however can be worthwhile in the long-term. Owning a rental property provides you with a steady monthly income as you can begin earning as soon as renters move in. However, be mindful that as you own the house, you are required to pay for the house maintenance and only make money while it is rented out. Becoming a homeowner is a safe investment option as a rule of thumb is that property prices are constantly increasing, meaning that you will most likely make a profit when it comes to sell! Click here to check out Barclay's guide for information on how the Buy to Let process works.
5. Print on demand services
This method requires a bit of thought and time upfront, yet when set up can be a great passive income method. Print on demand services can be in the form of t-shirts, notebooks or even phone cases. Using a website such as Canva, create your design. Look at current trends to see what the public is after. Websites like Printify will then print your designs and dropship them to customers who have ordered. Even Amazon have Print on Demand services, and can print notebooks, planners and journals. There is no cost if your design does not sell, and If it does, these companies take care of the rest!
Start your passive Income stream
It is possible to invest in passive income with little money, some methods require large investment costs such as rental properties, however, print on demand services are completely free to get started with. Whichever method suits you most, spend a bit of time learning the basics and understand the risks and rewards going into each one.