Working the regular 9 to 5 with a fixed paycheck may not be enough to cater to your needs and expenses. With bills and the cost of living constantly rising, what you really need is passive income. So, we will be talking about 3 ways to generate passive income.
What is passive income?
Passive income is earnings made from additional income streams that do not require continuous active efforts or attention. Passive income streams could generate additional cash flow for you without requiring you to be hands-on or to be physically present.
Here are 3 ways of generating passive income,
High-yield savings accounts
Choosing where to put your savings is important if you want them to work for you and steadily grow over time. By putting your money in a high-yield investment account, you allow it to earn more interest.
Although the interest earned from a high-yield investment won’t make you rich overnight, it can earn you considerably more than a regular savings account could.
Investing in Rental Properties
Owning and managing rental companies might be a bit more time-consuming, but it offers a great avenue for making passive income. You can either invest in commercial real estate or residential properties or simply purchase a residential property and have it managed by a professional. The never-ending demand for property either for short- or long-term leasing would guarantee a somewhat steady flow of passive income even if it is on a monthly, quarterly, or annual basis.
Selling Your knowledge
One great way to create long-term passive income is to sell your creativity, knowledge, or skills. You can do this by writing a book (or e-book), creating an online course, or developing a downloadable purchase such as cookbook or writing templates.
However, you might have to invest some time into preparing and packaging these skills and knowledge into either physical or digital products that can be purchased. You would also need an appropriate platform or channel to make these products available to your prospective market. Once this is properly set out, it’ll continue to generate passive income for you. It is important to review and update your content to remain attractive and competitive.