How To Get Passive Income (Top 3 Current Ways)
What is passive income?
Passive income is if you invest money, or time, and you build something that generates you gradual, recurring income that does not require you to invest a lot more time and money into it in the future. Once you have done it, it is more or less passive.
Invest into profit-returning things
The first way to generate passive income is with investments. You may say you already know that stuff but it is so complicated and you do not want to become an expert. If you look at something very simple like the S&P 500, which is a collection of stocks you can invest in, pay attention to the last 50 years and you will see the average return yearly is around 11% or so. That is really quite a lot actually!
If you invest $10,000, a year later you will have 11% more and that just keeps stacking like that. Unless you lose money, more or less this is passive income. There have been periods of downturns, but on average in the last 50 years it has been going up very steadily and very predictably.
That is a form of passive income that almost anyone can play with. Even if you make just a little bit of money, 11% per year is actually a lot more than any kind of savings accounts at your bank. It is actually pretty good and stacks up a lot of money if you leave it there for long enough.
The second type of passive income is probably something you have never heard of. In a lot of my videos I talk about going to offer services and products to companies. There is a way to make that into passive income.
There is a website called www.ThemeForest.com where you do not necessarily talk to clients and get sales on the phone like I recommend you do in other videos regarding ThemeForest, but if you create a template, for example a WordPress template, and you put it on that website for $50 and it starts getting sales, you can get $1,000 per year. This template can be keyword targeted and it can be just what people are looking for at the moment.
Considering that you do not have to do much of anything other than update the template from time to time, $1,000 is a lot of money. Once your template is ranking and getting sales on websites like ThemeForest.com, it is actually passive income.
If you are a web designer and you do not want to deal with clients and a million different custom projects, then that may be a good solution for you. You can leverage your spare time after coming home and creating in-demand templates and putting them on websites like ThemeForce where they get sold automatically. Initially it is a lot of work, I agree. However, after a while it is as passive as you can get.
Lend money using a 3rd party
The third method that I would recommend for you to get passive income is to lend money. Most people borrow money, get into credit card debt, and do all kinds of crazy things to be able to afford televisions and cars. If you are actually the person who is lending the money instead of the person who is borrowing it, this is a very profitable thing to do.
I recommend that you use a 3rd party to lend the money and have contracts, even if you lend to family, but with lending money you are able to generate a good percentage back on top of the money you are going to get. If you lend to the right people who have a job, who are steady, who have a family, and are highly motivated to pay you back, you can make a lot of money with that.
Why do I recommend you use a 3rd party?
It is just because you are most likely not an expert in the lending process, but an intermediary party is an expert and you will avoid a lot of the pitfalls that you would have gone into otherwise.
Become an entrepreneur
The final method, and my favorite method, is to become an actual entrepreneur. Not lend money and get it on the stock market, but someone who takes risks, someone who takes something and sells it at a profit, and someone who increases the value of things.
To become an entrepreneur there are many other methods that talk about how to become an entrepreneur, but basically you need to have three things. You need to have a way to get people on a call (leads), you need to have a way to sell to them (sales skills), and you need to sell them what they are looking for (product or service). If you have these three things and you are good enough at sales, copywriting, or marketing, you are able to build a business. There are many other things you need but I do not want to make it super complicated for this piece about passive income.
These are all legit ways to make passive income, but with that being said, if you do go the entrepreneur route, in the beginning it is a lot of hard work, but eventually you are able to leverage that by hiring people and automating your business. At that point it can be passive income.
Searching for passive income
The most important thing you need to realize is that chasing the passive income actually is not likely to bring you a lot of passive income. It is most likely better for you if you develop skills to a high level and get paid a lot of money by companies and people for your skills. If you can do that and become an entrepreneur like that, then the passive income can be a nice supplemental income for you. You can actually leverage the money that you are earning for your business selling your services and skills, to build an actual empire and actual wealth.
That is what I would recommend because with passive income, people often think they can just lie on a beach and do nothing, which can be true if you have earned it, but from my experiences it gets bored really fast going to parties every day. You have to balance this with hard work and then going to the parties and relaxing at a beach are actually fun.
This is what I recommend for you, but you may agree or disagree and go straight for the passive income, but it is completely up to you. I wanted to share these methods that have worked for me, and I want to know what has worked for you.