Wondering how you can diversify your income streams? Here are 3 simple ways to earn passive income that can help you…
Warren Buffett, one of the wealthiest people on the planet, used a smart strategy to grow his income drastically.
He used what I call the ‘two buckets’ strategy: one bucket, the main one, contains his major business model, wherein he owns the majority of stakes.
The second bucket is an interestingly crafted model with a mix of investments and passive incomes.
It holds financial assets such as stocks, bonds, properties that yield a rent, etc.
In simple, layman terms, Warren Buffett, and almost all successful people use the Active-Passive Income model.
For those in the unknown, let me clear the air out surrounding active and passive income.
You’ve probably heard the term “passive income”.
It sounds engaging, right?
Passive means “without active response”. This leads us to passive income which would mean any income that is generated without any active action done by an individual.
I can hear the lazy people make some noise!
But wait, there’s a catch here. Just like you can’t expect money to grow on trees, you can’t expect income to generate without doing absolutely anything.
What Is Passive Income?
A better way of describing passive income is any income that you can generate without regard to your time.
You can also consider it as a ‘slow’ income. This is because it takes time, energy and money before income starts pouring in.
It’s like a machine. Initially, you’ll have to spend some time and money building it and then it will start running without your assistance and help.
Also, before proceeding further, it is important you understand the difference between active income and passive income.
Active income is the income you generate from your regular, day job. It is advisable that you have both active as well as passive income sources.
This is because, in case you have zero passive income; it will mean that every moment you’re not working, you’re not earning.
On a more serious note, passive income is a very beneficial method of earning which offers you both security and financial freedom.
But what is the significance of passive income?
Passive income gives you three things: freedom, freedom, and…freedom!
The reason behind passive income’s significance is that it is not tied up with your time. Hence, you have your time to yourself to do things you enjoy. That is why it is important to know ways to earn passive income.
The greater your passive income is the lesser chances of you turning into a slave to money.
Also, you can consider it as a backup income. Or, an emergency fund.
You can combine active and passive incomes to definitely expand your yearly income. By consolidating your dynamic/active salary with a few types of passive revenue streams, you are eventually constructing budgetary freedom for yourself.
You will become financially independent once your passive income surpasses your expenses.
However, a great many people just focus on one income stream and that is alright. But, this approach leaves them financially vulnerable.
Focusing on one income stream is wayyy riskier than managing multiple income streams.
Well, what if your only source of income gets disturbed? What are you going to do then?
I hope I have convinced you enough to at least start looking for passive income streams.
It’s time to plant some passive seeds to support your active income trees.
1. Resell Graphics!
There are three unique ways to do this.
First, you can purchase unique design templates from others over the internet and then resell them for a slightly higher price.
This way to earn passive income, you can profit from the difference in your cost price and sale price.
Secondly, if you are equipped with designing, you can develop unique designs in-house. Use simple software like Adobe Photoshop or Canva to make some out-of-the-box creative designs that attract attention and…money!
Furthermore, you can use WordPress to flawlessly display your designs in one place. Potential customers can then choose either from the existing designs or can demand a new design for a higher price.
Lastly, you can freelance!
You can find an agency that requires graphics on a daily basis and offer to work with them on a freelance basis. This way, you will earn along with effectively building your portfolio. You can also choose to provide mock-up PSD files wherein the client can add in his/her own pictures.
2. Become a Promoter on the Go
If you drive your car around a lot, you can cash in on that!
Have you ever seen those cars which have advertising stickers stuck all around them?
Yes, those car drivers earn a supplement income by just sticking those posters to their car and driving around wherever they want to.
Just stick the advertisers’ posters and nothing else.
There may be certain conditions put forth by the advertiser regarding the minimum distance you must drive and all, but these conditions are usually not very rigid.
The company will pay for the poster to be put on and taken out, except if you choose to break the marked agreement.
So, is there anything stopping you from reaching out to nearby organizations and promoting their cause through your vehicle?
3.Host Events on AirBnB etc.
Apps like AirBnB have been gaining momentum among youth nowadays.
If you have a ‘Monica’ hidden inside of you who loves to host people, then this income source is for you.
Put up your place on AirBnB with quirky events and earn cash!
Events can be about anything: dance parties to theme parties to kitty parties to silent discos to pool parties and absolutely anything!
What’s more, you can even co-host!
This source channels your extrovert self to organize events or stays at your place and earn some cash the fun way. This is one of the best ways to earn passive income.
It does not require anything major – just some organizing skills, some knowledge about vendors, good food taste and of course, the hippest music in town!
Besides, one major benefit of this income source is that you can pursue it at your own pace, at your own time.
You don’t have to do it every weekend. You can choose to do it whenever you want. Once a month, twice a month, twenty times a month – it’s up to you!
Summary – Ways to earn passive income
Regardless of whether you fabricate posters and creative for businesses, enclose your vehicle by ads, or host lit parties, these passive revenue streams may or may not make you rich.
But what these would most certainly do is that they will make you see financial freedom beyond your typical 9-5. There are unlimited options to diversify your income stream and effectively combining a few of these can help you pay off your rent, student loan, car installment etc.
I hope you’ll start at least two passive income sources very soon in order to supplement your active income.
Aim to surpass your active income and you’ll be financially secure.