What are the easiest forms of passive income? Ideally, over time you’ll build up a passive income portfolio which gives you an income which exceeds your current income from your job, if you have one. The tricky thing is, if you are working, all your time is tied up with trading time for money. It makes it much more difficult to find and implement the easiest forms of passive income, once you know them.
Here’s a few strategies to get out of that trap and learn how to stop trading time for money, too. This will free up your time so you can build more lucrative and passive income streams.
Easiest Forms Of Passive Income
Here’s a quick list of the easiest forms of passive income.
- Owning property – either to rent out or make money on the appreciating value of it.
- Owning shares and stocks – Here’s a great app anyone can use to get started.
- Building an online business and using affiliate marketing to sell digital products.
- Using multi-level marketing to build a team from which you can earn passive income.
- Getting out of debt is one of the easiest forms of passive income. While not technically ‘income’, debt removal is the fastest way for most people to increase their income quickly.
- Put money into a savings account – duh! Living below your means can free up money to help you do this.
1. Owning Property – Easiest Forms Of Passive Income
Ok so I’ve used property ownership as a form of passive income. However, it’s only passive income if it’s not costing you money every month. In most cases you’ll have a mortgage tied around it. You can still build towards it becoming a passive income though if you over pay your monthly payments and pay off early. The sooner you pay off that mortgage, the sooner you’ll have an asset free and clear. You can also rent out property, even if you don’t fully own it yet. Get an interest only mortgage to purchase a property and rent it out. As long as someone is living in your property, and you are earning more than your minimum payments, you’ll be in profit and be earning passively, kind of.
It’s easy if you already have the means and much harder if you don’t. For many, property is out of reach due to their circumstances. Whether property ownership is one of the easiest forms of passive income for you, depends on your own particular circumstances. Owning a property outright is obviously the best case scenario if you can either live in it or rent it out. You’ll make the rent each month and it’s an appreciating asset which grows in value over time.
2. Easiest Forms Of Passive Income – Stocks and Shares
Stocks and shares are another option if property is out of your reach. Anyone can buy stocks and shares with the intention of making money from a rise in their value over time. However, there’s risk involved like with any investment. Stocks go down as well as up! It’s worth spreading your investment over a few different stocks and getting some sound financial advice before you take this step. Don’t trade with money you can’t afford to lose either.
Here’s a great little app which anyone can use to get involved with stocks and shares, without any experience or know-how. I’ve been using the Money Box App with some great results over time. (Please get financial advice of your own as there is risk involved). What this app does is link through your bank account and round up your bank card payments over the week.
Then, it takes all those pennies, (or cents), and puts them towards your share portfolio. Over time this builds up and those small amounts are invested without you needing to do anything, once it’s all set up. This has to be one of my favourite and easiest forms of passive income. Don’t expect to live off this though, as you’ll need to leave it there for some time before you see a positive return. But those little passive incomes streams are passive, and it’s a pretty easy system to set up.
3 & 4. Building An Online Business Selling Digital Products
Building an online business is one of the easiest forms of passive income, if you get it right. With the automation and the ability to sell other people’s products globally, an online business is definitely one of the easiest ways to automate income. And, automated income is definitely passive, even if it takes a while to set up.
The fastest way to start generating revenue from an online business is by purchasing a digital sales funnel and using paid advertising to market it. Once you get to the point of paying $400 and making $800, your online sales machine is working and you can scale up simply by increasing your advertising budget and reaching more people!
Although it takes time and work to get to this point, it’s definitely worth it. It’s one of the easiest forms of passive income available to anyone. With a good business model, your return on investment is far greater. With this model you can even use the strategy of multi-level marketing in conjunction with affiliate marketing. This means, you can build a team and benefit from sales they make. You can also benefit from subscription products which can pay out a residual and passive commission each month for sales you’ve made previously.
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5. Easiest Forms Of Passive Income – Get Out Of Debt
Ok ok, so getting out of debt isn’t going to pay off the mortgage. Or is it? If you have debts, you’ll be paying out not only to clear your debt, but also to pay interest on it. If you work out how much debt you’re effectively servicing every month, there’s probably a chunk of money right there which you could use to over pay your mortgage every month, if you have one.
If you do this over a considerable length of time, you’ll have paid it off much more quickly and therefore also saved yourself a heap of interest on your mortgage (and your debt). If you don’t have a mortgage, consider how much you can save just by not having debt. That money could be put into a savings account – one of the easiest forms of passive income, (even if not the most lucrative).
6. Savings Account – Easiest Forms Of Passive Income
Yes the obvious is to stash some cash in a saving account. The more you commit to long term savings, the more interest you’re likely to earn. If you use this strategy by setting up an automated payment each month from your current account, it can be much more effective and easier to stick to. This is the best method of sticking to a regular amount of outgoings paid into savings each month. You’ll soon get used to living below your means – a key secret of many wealthy people. Unless you learn how to live beneath your means, you’ll never have the money required to put aside into money making ventures and generate passive income from.
Checkout my articles on how to create wealth on your current income and wealth secrets of the affluent.