You’ve heard the line before… “make money while you sleep!” It sounds like a dream come true to lots of people but it also sounds too good to be true to people as well. There was a pyramid scheme years ago that had that same tagline and ended up scamming people out of their hard-earned money. So the whole “make money while you sleep” thrill has ultimately lost its effect on lots of people.
It’s unfortunate that people feel this way because there are real ways to earn money with little to no effort, it’s just that people have lost faith in people and because of that, people are missing out on great opportunities to increase their wealth. It’s perfectly understandable why people are more cautious about their money after that whole incident… The FTC reported that imposter scams were the number one fraud of 2019, so with so many people losing money to scams, can you blame people for holding on to their money?
You really can’t blame them but at the same time, you also have to understand that “scared money, don’t make money,” as some would say, so that means that if you want to build wealth, you’re going to have to take some financial risks. Not all financial risks are bad ones either, you just need to do your research before quickly handing your money out.
When you’re in need of additional income, most people’s go-to is get a second job… Well, getting a second job is definitely a safe route for additional income but if you’re already working a full-time job, do you really want to take on a second, part-time job? Probably not… the goal is to work smart, not hard. So what’s a much better alternative to working a second job?
If you guessed investments, then you guessed right on the money! We’re talking real investments… not like trying to figure out what your next handbag investment should be… we’re talking investments that will build wealth. And guess what investments are… it’s passive income. Passive income is money earned with little to no effort or physical/material involvement… who wouldn’t want to make money in this way!
Passive Income Misconception: What You Need to Do to Actually Earn Passive Income
So you know what passive income is but if you’re like most people, you have the wrong idea about passive it. One of the biggest misconceptions about passive income is that because the word “passive” is used, people tend to think that they don’t have to do anything to make the money, and that’s just not a realistic view of passive income.
To earn passive income, you’re going to need to do one or both of these things… You’re going to need to invest money upfront or invest time upfront. You can’t build any wealth without giving at least one of these things.
Take a look at some passive wealth ideas you can start today that either require money investments upfront or time investments upfront.
Passive Wealth Investments That Require Money Upfront
Buying Real Estate
Buying real estate is a great way to build passive income but it is going to require a nice investment. But, in return, you’re going to bring in a nice monthly income by renting it out. Let’s say you take out a loan to buy the property… every month when your tenant pays rent, they’re actually paying some of that loan off.
Once the mortgage on the loan has been paid off, just imagine what your income will look like! It sure won’t have you living paycheck to paycheck anymore! Your initial investment on the property will be paid back and grow beyond what you ever imagined.
Building an Online Store With a Team to Run It
You know what they say, “it takes money to make money,” and that’s a true statement. Your earning potential is limitless when you build an online store. Just think about it… how do most people shop these days? Online. Okay, so let’s look at some numbers…
According to Statista, back in 2016, 209.6 million people shopped online. Well, based on the shopping habits and trends of online shoppers, that 209.6 million is expected to jump to 230.5 million by the year 2021. If you had an online store, your business would be able to get a piece of that pie!
Now, where this particular investment becomes passive is by hiring or outsourcing a team to run the business for you. You would make the initial investment of the domain name, the website hosting platform, and marketing efforts, among other things, but once you’ve made that initial investment, you can hand everything else over to your team and let them run it! That’s passive wealth building at its finest!
Dividend Stocks are a great way to earn passive income. The only thing about dividend stocks is that you’re going to have to do your fair share of research to find good stocks to invest in. Once you find good ones to invest in, make your investments consistent and you’ll have nice residual income before you know it.
Passive Wealth Investments That Require Time Upfront
Creating an App
You’ve heard people say “there’s an app for everything!” and there truly is. What if your great idea could become the next big app? Simply look into finding a programmer who can turn your great idea into an app that you can sell on Google Play or the App Store.
Selling an eBook
Selling an eBook is probably one of the easiest ways to earn passive wealth but it is going to require a bit of your time upfront before you can see any profits from it. You’ll need to write the book and edit it, create your book cover, and upload it to a self-publishing program. Also with this passive income, you’re going to need to invest quite a bit of time into marketing as well.