While nearly anyone can build passive income streams, it requires hard work and a payoff that may not come until months or years later. This is the leading reason why most people give up on the idea before they start. When done correctly, however, the trade-off with building passive income is that you work a lot upfront and very little later when the passive income starts building. Check out this list of nine possibilities for inspiration.
Create music, write a book, or write a screenplay
The beauty in creating a product that other people love is that you earn royalties each time someone buys it. Go ahead and get those creative juices flowing, and you might be surprised at how much a single product can earn you.
Develop a smartphone application
People depend on their smartphones for everything these days. Why not take advantage of that by creating a new application that taps into an unmet need? You can even offer it free to consumers and earn your money from advertisers.
Find a business to invest in
Investing in a business, especially a new or growing one, can provide you with passive income for very little effort. After making the investment, you simply earn money on profits and don’t need to have an active role in any way.
Make sure everything in your portfolio produces dividends
If you have already accumulated a lot of wealth, spreading some of it out over stocks, bonds, and certificates of deposits in your portfolio can produce at least a five percent rate of return.
Monetize your blog or website
If you have a blog, website, or a large social media following, advertisers are willing to pay you well to place links to their products on your pages. That is the only step involved other than collecting the money.
Licensing fees from a brand or system
If you have developed a brand or system that can significantly benefit others, consider licensing it. That way you receive royalty payments every time someone uses the name.
Real estate investing
Buying a rental property can provide you with passive income as well as significant tax breaks. If you aren’t interested in property management, simply hire someone to take care of those tasks.
Create an insurance, investment, or financial planning business
As an agent, you would receive an initial commission for selling a policy to your client. You would also receive renewal commissions every time your client renews a policy.
Sell your patent
If you have invented a drug, process, or product that you’re not interested in developing a business to support, you can earn money by selling your patent to another company and receiving royalty payments every time someone else uses your patented item.
The Wealthy Have a Different Mindset
One thing we have learned over the years at Aura Wealth Advisors is that people who accumulate wealth have an entirely different mindset than those who struggle to get by. Thinking in terms of passive income is just one such difference. We invite you to contact us if you would like advice on more passive income possibilities or how to start one that especially interests you.