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Guest Post by Linda Richardson – 7 smart ways to build a passive income stream
Linda Richardson is a financial content writer based in New Jersey and a perennial student with an ongoing interest in learning new things. She uses her curiosity, connected with knowledge as a financial writer, to write about valuable lessons for small businesses. You can find her on Twitter and Facebook. She is currently a financial writer for Credit Card Consolidation Debt.
Pandemics have engraved one fact in our hearts. A regular 9 to 5 job is not enough to help you survive an economic downturn. You need extra money or a passive income stream to take care of your financial needs when everything is so uncertain, including your job.
In this post, we will discuss a few smart ways to build a passive income stream so that you can easily survive any financial crisis. So, let’s begin straightaway.
7 Ways To Build A Passive Income Stream
Here are seven simple ways to build a passive income stream and build a fat financial cushion for yourself.
1 – Rent Out Spare Rooms
Do you have spare rooms in your house? If so, then you can rent them out and earn around $10,000 in a year.
The spare rooms in your home can help to generate passive income and support you financially throughout the year.
Register your home in Roomster, and other renting out apps to find the perfect roommate now.
2 – Open Your Youtube Channel
Do you know many lost recipes or a lot of DIY hacks? Do you have a vast knowledge of investments or personal finance?
If so, then you can create a channel on Youtube and post informative videos. For instance, if you have a vast knowledge of personal finance, then you can post a video on debt-to-income ratio and debt-to-credit ratio in one week.
Again next week, you can post videos on other financial topics like steps to become debt-free. As the number of viewers and subscribers of your channel increases, you will start making money.
It is a fun way of generating passive income. Moreover, as your channel becomes more popular, your popularity will increase in leaps and bounds.
3 – Invest In Dividend Stocks
Dividend stocks give you a steady source of income every month or quarter. The dividend stock companies give you a fixed commission every quarter or month.
You won’t have to do any work. All you need to do is invest in dividend stock companies. They will do the work even when the stock market is down and give you money at a fixed interest rate on a particular date every month or quarter.
Another benefit of investing in dividend-paying stocks is that when the price increases with time, you can sell them at a good price and make money.
I am a regular investor in the stock market. Even though the stock market was down during the pandemic, I have earned around $1,000 every month.
4 – Sell Your T-shirt Designs
Are you quite creative by nature? Do you love designing t-shirts?
If so, there are lots of websites that are ready to pay you for your designs. All you need to do is create an account on those websites and upload your designs.
Some websites charge fees, whereas others don’t. Once someone buys your designs, you will get a commission on the sale price.
The commission usually varies between 15 percent and 20 percent. It is not a huge amount of money but something is better than nothing.
5 – Become An Affiliate Marketer
Affiliate marketing helps you to generate a passive stream of income via websites, podcasts, social media, blogs, etc.
Here, you earn dollars by promoting a third party’s product or services by inserting a link in your blog or social media account.
Whenever a person buys a product or enrolls in service from the third-party website, you will earn a commission as per the agreement.
You don’t have to put any extra effort into promoting the products or services. However, you have to make your blog popular and attract traffic. Otherwise, no one will click on the affiliate link.
6 – Develop And Sell An Online Course
You can develop an online course on a subject that is in demand. You can create a practical and need-based online course and sell it on the digital platform.
It will take time to develop an online course. You have to put your heart and soul into it. But, once you are done with it, you can sell online courses to several people and make money.
Try to choose an evergreen subject so that people are always interested in doing the online course. Make sure the course is user-friendly and solves problems of the users.
7 – Register Your Home On Airbnb
If you have a vacant apartment, then you can rent it out. That would generate a passive stream of income.
You can also list it in Airbnb to rent your apartment to tourists for a few days.
Indeed tourists are not coming now due to the pandemic. But the situation won’t be like this forever. The situation will change one day, and tourists will flock in.
How many sources of passive income should you have? Well, that depends on your present financial situation and future money goals.
Start making money by using the aforementioned ways in the beginning. You can always explore other ways of making money later.