Who doesn’t want to make more money by doing practically nothing?
Though it may seem daunting at first, you can generate passive income, even if you don’t have a lot of technical know-how.
Here are four strategies to develop steady streams of passive income that can reap major rewards with minimal effort.
1. Invest in real estate (it’s easier than you think)
You might consider investment in real estate as an income generation strategy that’s only for the wealthy. In reality, profiting from real estate investment is becoming more and more accessible.
Platforms operating as real estate investment trusts (REITs) allow everyday investors to contribute smaller sums of money to larger financial portfolios and pass along profits in the form of stock dividends.
Of course, there are also the more traditional types of real estate investment, such as buying rental properties, but keep in mind that this tactic requires higher upfront costs and complexities such as property management.
2. Consider dividends and lending
Invest in stocks that can result in dividends paid out to you in cash as the shareholder approximately every quarter.
Do your research, though, and make smart stock investments based on your available finances and market performance.
Another viable option is peer-to-peer lending, which involves loaning people money outside of traditional financing routes.
3. Utilize your skills, resources, and social connections
Are your friends and family members always asking you to share a certain skill, like advice on job applications or help with household repairs?
If you have access to and knowledge of basic technology, you can transform your expertise into an online course that only requires initial creation with periodic updates to create a steady stream of passive income.
Do you have a spare room, car, or large tool you’re willing to rent out? Resources like housing and equipment can be turned into passive income through a variety of peer-to-peer renting outlets, and you can even outsource the prep and cleanup.
4. Buy a “self-serve” business
While purchasing a business requires upfront financial investment, certain establishments can reward you with true passive income after the initial setup.
Many “self-serve” type businesses can easily run themselves — such as car washes, laundromats, and batting cages — with only minimal maintenance required.
You can also start other types of businesses with surprisingly little startup funds. Once they become profitable, you can outsource the labor and management, so you can sit back and enjoy that passive revenue stream.
The bottom line
Work smarter, not harder. Working a traditional nine-to-five job may be necessary to pay the bills, but by creating successful passive income strategies, you can reach the ultimate goal — less time working and more time living.
