Did you know that successful financial experts recommend that 50% of your income come from passive sources? This means that you should ideally strive to earn 50% active income from a traditional job and then the other 50% from a passive source. But, how?
There are actually a lot of ways to earn a passive income in today’s modern, digital world. You just have to know where to look and how to go about getting started. And, lucky for you, we knew just where to look.
Because most individuals looking for passive income ideas don’t yet have the kind of savings to invest in larger assets like rental properties or stock portfolios, we’ve come up with five unique ideas for how to make a passive income that nearly everybody, including students, can engage in.
1. Sign Up For Affiliate Marketing
Affiliate marketing is one of the most popular ways that entrepreneurs make a passive income nowadays. As Shopify puts it, the formal definition of affiliate marketing is an “online sales tactic that lets a product owner increase sales by allowing others targeting the same audience to earn a commission by recommending the product to others.” So, if you’ve got a blog, website or online store, you can make easy money through affiliate marketing.
How do you make a passive income with affiliate marketing? You usually start by finding an affiliate program to join. This could be anything from an individual site to something bigger like the Amazon affiliate program called Amazon Associates. You share a link on your website or social profile. Then, when anybody clicks on it, you get paid. Sounds great, right? It is, especially for students with larger social followings.
2. Sell Courses & Information Online
You’ll have to put in some work, in the beginning, to get these up and running and off the ground. But, after you’ve completed the course, selling it online is a great way to earn a passive income. This is often referred to as “productizing your knowledge.” It means to turn your knowledge into something you can sell. Do you know how to make beautiful handmade crafts? Are you a master of calligraphy? Can you create delicious, beautiful cakes? All of these are skills you can monetize.
And, due to the popularity of sites such as Udemy, it’s easier than ever to create a successful course that’ll make you a passive income. They give you all of the tools and guidelines you need to create a course that will sell. Top-earning course instructors can earn millions of dollars, with the top Java instructor currently making $44,000 a month on a course he’s uploaded to the platform. Average instructors, however, can expect to make anywhere between $265 to $1,000 per month.
3. Become A Dropshipper
Dropshipping is one of the most profitable eCommerce business opportunities for entrepreneurs looking to make a passive income, according to financial experts. What makes it so great for those looking to learn how to make a passive income? First and foremost, it’s easy. The low-risk, high-reward model ensures that you don’t need a lot of cash to invest in order to get started. And, because there’s not a lot of other risks involved, it means that, if you don’t succeed, you’re not going to lose a lot in the process.
When you open up a dropshipping store, you’re not ever going to need to worry about physical stock. Once a customer buys a product, your dropshipping store sends the detail to your dropshipping partner and they send the goods straight to the customer. In order to see success with this kind of passive income method, however, ensure that you’re not entering a highly competitive market. Also, choose a dropshipping product that has the potential for high returns and longevity.
4. Rent Out Space in Your Apartment
As we mentioned, most people who are just beginning to understand what passive income is are usually not at the point in their lives or careers where they have the kind of cash to invest in rental properties. However, you don’t always need to own a property in order to make a passive income off of it. Due to the popularity of rental sites like Airbnb, many property owners have decided to use it as a way to advertise and securely rent their homes as it gives them the option to decide on their own terms when and how they can rent.
And, even if you’re not the owner of your house or apartment, you’re still likely able to rent it out on platforms such as Airbnb. Even though it’s not as passive as some other methods on this list, if you’re able to manage the upkeep and streamline the check-in and check-out processes for your guests, it can be pretty passive. Airbnb hosts make about $924 a month on average in the United States, according to research from Earnest.
5. Earn Passive Income Through a High-Yield Savings Account
It doesn’t get much more passive than simply putting your money into a savings account and watching it grow. But, you’re going to need to understand just what kind of savings account is going to yield the highest returns. And, there’s no better time than the present. Last year, the Federal Reserve said that they didn’t expect interest rates to increase any more for a while.
So, take advantage of the current interests rates and put your money in Cheese Debit Card. We offer an FDIC-insured debit card with 0 fees, cashback on purchases and savings bonus, making it one of the best and easiest forms of earning a passive income around. Sign up for a Cheese debit card today to get started.