Virtually everyone has heard of passive income at one point or another. In essence, passive income is defined by
"income resulting from cash flow received on a regular basis, requiring minimal to no effort by the recipient to maintain it."
In most cases, this passive income requires a degree of work in the initial phases before the ongoing payoffs. Many people would love to experience this type of revenue, but are unaware of how to lay the groundwork for it. Moreover, passive income is one of the critical components which well-off individuals use to earn and (especially) maintain their wealth.
Going forth are some particularly useful ways in which the average person can earn passive income, thus enriching themselves and increasing their net worth.
Get Serious about Investing
While there are a variety of passive income earning methods, investing is one of the best. According to
The Motley Fool
, stock dividends, real estate investment trust (REIT) dividends, rentals, and more can be great avenues for passive income. This is because each of these avenues come with ongoing income streams which continue long after the initial payment or purchase.
However, with rentals, there is a degree of work which has to be done. For instance, the property may need to be maintained, cleaned, and otherwise inspected from time to time. Picking the right tenants also makes a difference as well; the ideal tenants will take care of the property they're renting and pay their monthly rent on time.
Start an Online Blog or YouTube Channel
Not everyone has the big bucks to invest in real estate or stocks. However, these are not the only ways to generate passive income. Online blogs and YouTube channels can be excellent avenues for earning revenue and moreover, they don't require hundreds or thousands of dollars upfront. However, both online blogs and YouTube channels do require a degree of time before the passive income reaches hefty amounts.
Blogging through WordPress allows writers to put ads via Google AdSense on their page. When readers click on the ads, the blogger earns income. The only catch is the number of readers which view the blog. Ideally, the writer should have a sizeable viewership. The more people who view their blog, the more opportunities to earn passive income.
A similar principle applies to YouTube channels. Starting this year, YouTube mandated certain benchmarks which must be met in order for content creators to monetize their channels. However, after building up a sizeable following base, an online blog and/or YouTube channel can be quite profitable and become a lucrative stream of passive income.
A Final Word
One of the most important things to remember about passive income is that an initial investment is usually required in the beginning prior to the accumulation of ongoing revenue; that investment usually comes in the form of time or money. However, there are a variety of opportunities regarding earning passive income.
Different paths work for different people. For specific advice tailored to one's own personal needs, consulting a financial advisor is recommended.
Authored by Gabrielle Seunagal