Earning A Passive Income From Home: 3 Ideas To Get You Started
You may have heard of the term passive income by now. Passive investing has risen in its popularity over the past few years with the younger generation turning to split incomes between active employment and passive income streams. So what exactly is passive income? Well, it refers to earning income while doing little or nothing. Don’t be fooled, however, there are upfront labour and costs involved to get your income running smoothly but once operational, it pretty much manages itself and you can easily earn around $1,000 each month. There is a range of options that you can utilize to get your income stream started; ranging from the growing digital marketing world to website creation, here are just a few to help you get started today.
Build Your Financial Investment Portfolio
One of the most common passive income ideas is investing in dividends paying stocks. When considering how to your financial investment portfolio started, one of the first things you should consider is your attitude to risk; whether you are more risk averse or risk seeking. Financial instruments such as bank certificates of deposits are safer options but on the flip side, have smaller returns. Thanks to the recent expansion of investment companies, you have much of the work cut out for you as well. All it requires is the funds and some research when choosing your companies to invest in upfront and you can get started with as little as $100.
When looking for companies to invest in, have a look at the dividend and payout ratio. Ideally, you want a ratio of 70 percent or lower. Lower ratios allow for company growth since more earnings are being retained in house. You can also buy stocks with the expectation of them increasing in value (stock appreciation). When this happens, you can then sell them and the appreciation in value would be your income. For example stock bought for $10 and sold for $12 would have made you a 20 percent gain. While you can be your own stock analyst, there are also great market index and equity funds available should you prefer not to and the costs range from 0.25 to 1 percent annually.
Build An Online Brand
Similar to a business, building a personal brand can net you income and increase your value to sellers and companies. With the future being in the digital world, building a brand online seems like a good first step. Once your brand is established, you can enjoy income without much effort. There are many different ways you can get started and they don’t have to be complicated either.
You can build a website, a blog and also a social media platform. These options take minimal hours to set up and if marketed correctly, can quickly gain you regular income either from sponsored posts on social media or affiliate links on your blog. Using tracking links on your website or social account, every person that clicks and purchases from the company, you get a percentage as a referral fee earning between 5 and 15 percent per click. For this idea, building up traffic is key. In 2014, an Optimus survey found that fashion and lifestyle bloggers can earn over $1300 each month while lifestyle bloggers can earn over $1,200 each month from affiliate marketing. Best of all, it can all be done from the comfort of your own home using just a laptop.
Build Up Your Property Portfolio
Finally, another passive income stream can be rental income from property you may own. While buying a home or office space seems like a massive undertaking, today you do not necessarily need thousands in a housing deposit to get your property portfolio started. With private property investing platforms and real estate trusts, you can invest as little as $500 for a house share. If you are looking to invest in buy to let property, university towns such as Holyands and Stranmills are great locations to get started.
Another option is to invest in office space or business units and then sublet them. Based on the location and space, your investment could be less than buying a home but with similar payouts annually. You can also rent space in your current home either as a spare room or office space. By using the available online platforms, you can even rent space in your driveway with a simple registration process. Using sites like JustPark, you can earn up to $4 per day for renting your driveway space while spare rooms can net you around $260 each month.
There is a magnitude of ways you can diversify your income streams. Perhaps you are looking to repay student loans or save extra to own your dream home but do not have the time for a second job. Then passive income is the way to go. So, put your creative hat on and get started today.