How To Make Money Doing Nothing
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Everyone wants to know: How can I make money doing nothing? A perfect way to help you produce additional cash flow would be passive income. As the COVID-19 crisis is a testament, economic upheaval can happen any time. And passive income helps close the gap if unexpectedly become unemployed or simply want to achieve financial independence.
Why You Need Passive Income?
You might get the cash rolling in from passive income even while you work on your primary career, or if you can build up a good passive income pool, you may want to kick back a little, retire early, or live a lavish lifestyle. Anyway, you can have additional financial protection from passive income. And if you’re concerned about being able to invest enough of your money to reach your savings ambitions, accumulating capital through passive income is a tactic that could appeal to you.
Regular profits from a party other than an employer or contractor come from passive income sources. Passive income may come from two sources: rental property or a corporation in which one does not engage directly, such as book royalties or stock dividends being paid. You may do any or all of the job upfront in operation, but passive income also requires some extra labor along the way, too.
To keep the passive financials going, you can have to keep your merchandise updated or your rental property well-maintained. But if you’re dedicated to the approach, it can be a perfect way to raise income and build more financial stability for yourself.
With affiliate marketing, website owners, “influencers” on social media or blogs support the goods of a third party by including a link to the product on their website or social media network. The best-known associate partner is Amazon. And for those looking to develop a following and sell goods, Instagram and TikTok have become major websites.
Affiliate marketing is called passive because all you need to insert a link to your website or social media platform, you will gain money. But if you can’t draw readers to your site to click on the link and purchase something, you won’t earn anything.
The site owner receives a fee if a visitor clicks on the link and makes a transaction from the third-party affiliate. The commission may vary from 3 to 7 percent, so it would obviously need substantial traffic to your site to produce serious revenue. But you could be able to make some serious money if you can expand your following or have a more profitable niche (such as tech, financial services or fitness).
This is a personal favorite. You truly do nothing!
With dividend investing, shareholders in companies with dividend-yielding securities receive a payout from the company at regular intervals. Companies pay cash dividends out of their earnings on a monthly or quarterly basis. All you need to do is own the stock. Dividends are paid out per-share of stock, meaning the more shares you hold, the larger your compensation.
Since stock income is not linked to any operation other than the original financial investment, it is one of the most passive ways of money-making there is. So how does this beat a savings account? Well, if you put your money in the bank, that will also be invested by the bank but at a much smaller yielding percentage than stocks.
One danger is that stocks or ETFs can decrease dramatically over short periods of time. The key to winning with any investment, especially dividend investments, is hold for the long term. That said, the investment class is not without risk. Economic uncertainty can cause certain firms to slash their dividends. The more diversified your portfolio, the less of a squeeze you’ll feel in tough times.
A REIT is a real estate investment trust, which is a fancy term for a stock-based on real estate. REITs have a special legal arrangement. They pass over their revenue to REIT owners and they pay little or no corporate income tax. It’s a win/win!
On the stock exchange, you can buy REITs like any other company or dividend stock listed. You’re going to earn whatever the REIT pays out as a payout, and the strongest REITs have an annual record of increasing their dividend, meaning over time you might have an increasing supply of dividends.
Specific REITs can be more expensive, almost like buying an ETF composed of hundreds of REIT stocks. A REIT, however, offers instant diversification to shareholders which is inherently much better than owning specific stocks, and you can always earn a good return from them.
Short-term renting out your house
This simple approach takes advantage of space that you don’t need and converts it into an opportunity to make money. Whether you’re leaving for the summer or have to be out of town for a bit, or traveling abroad, try renting out your new room while you’re gone. Using a variety of websites, such as Airbnb, you can list your room and set the rental conditions yourself. With limited actual labor, you’ll receive a paycheck for simply letting someone else use your house or room, particularly if you rent to a tenant who might use it for a few months.
Sell old clothes or accessories
Know all those clothes in your closet that you don’t wear, but are perfectly good? You can sell them. Find a consignment store in your area that will sell your things and send you a percentage of the sale. Or you can use a website that does the same thing. Most shops and pages specialize in luxury brands, such as TheRealReal, but you can sell and buy products from more inexpensive brands, such as Zara and The Gap.
Write and get royalties on a novel
This requires a lot of work upfront but if you’re an expert on the subject, it should come easily enough. You’re pretty much finished after you finally write the book and put your expertise on paper, so get it written. From there on, you get paid in royalties if people order your book. Your deal with the book publisher depends on the exact percentage of royalties< discussed with them.
Get paid for creating your own online course
Let’s assume you’re a subject matter specialist, but don’t agree that a book is the best way to convey the information you want to share. You can teach it or share it via an online course. For instance, you can create and upload one to Udemy and set your own price points. You’ll get paid if anyone purchases the course.
How many income streams do you need?
When it comes to producing revenue sources, there is no “one size fits all” method. How many revenue streams you have can depend on where you are financially, and what your potential financial targets are. It might be effective to simply start with one or two. You’ll want to make sure that working on a new passive revenue source would not cause you to lose sight or control of the other sources. So you want your efforts to be aligned and make sure you pick the right options for your current position.
How To Start Earning
Although more passive income streams seems better, try to choose just one at the beginning. You need time and the opportunity to rely on a passive revenue stream to really expand. Before going on to the other, master one thing. In the beginning, it will take a considerable amount of time or resources. The good news is, you’re guaranteed to earn passive income if you put in the time and effort! When you choose a passive income stream, pick a specific subcategory, create a strategy, and commit yourself.