Working at a job is one obvious way to make money and it’s how most people earn a living. Many individuals are lucky enough to love the work they do for someone else. But the truth is, most people aren’t that into the work they do for an employer. Only 32% of employees are engaged with their jobs, and disengagement has risen four percentage points since 2020.
Traditional employment can bring you a steady paycheck – you’re giving up your time so you can pay your bills. You may crave something more, including the freedom to call your days your own. Perhaps you want to pursue your passion or earn enough to retire early and travel. Whatever your thought process is, at some point in your life, each person will wonder if there’s more to life than punching the clock.
Luckily, passive income provides another way to fund your lifestyle. True, you’ll have to do some work upfront to establish passive income streams. But once you get going, the time you spend developing these streams will decrease. As your earnings grow, you’ll begin living life on your terms. Here are some opportunities to watch for and get you started.
Video Blogging
Digital content creators are everywhere these days. They’re made up of writers, filmmakers, and everyday joes who are enthusiastic about a topic. You can find everything online, from lawn care advice to psychic and astrological predictions. While some content creators turn to blogging and podcasts, others use video as their medium of choice.
Video blogging, also known as vlogging, is a way to create passive income by talking about what you know. It might be a niche topic, but it’s an opportunity to share your knowledge with others. With a YouTube channel, you can upload videos of yourself demonstrating your expertise or speaking about what interests you. Some vloggers also use their videos to attract clients if the topics relate to a service or product they provide. Others only monetize their channels.
You might find inspiration for vlogs from your hobbies, observations of everyday life, or industry insights. As Lifestyle Investing expert Justin Donald observes, “Inspiration can come in many forms. You make your own path based on what matters to you and what drives you.” Within your mind and life experiences are golden nuggets of wisdom others may need. Turning those nuggets into digital content like vlogs can benefit others and your pocketbook.
Dropshipping
In 2022, online retail sale estimates exceeded $5.7 trillion in value. Yes, shoppers may still go into stores to pick up items like groceries. However, the convenience of ordering what you need to eat or wear online, without going anywhere is alluring to many. Creating an online store can add to your income if you’ve got a product to sell. What for opportunities, they come up everywhere.
Yet managing the inventory and shipping items to customers may not appeal to you. Chances are you don’t have a warehouse or room in your home to stockpile products. Dropshipping is a way to still sell items online without the logistical hassle. You create a digital storefront, people buy, and your supplier takes care of the rest. They pack the orders and ship them out to your customers.
In the meantime, you earn an income from each sale. And you only pay a portion of the sale’s revenue to your supplier when you get orders. With savvy marketing and a viable product line, a dropshipping store will create passive income around the clock. It’s something you can start as a side hustle and expand as your store takes off.
Traditional Investments
Investing in stocks, CDs, and specific types of annuities can bring in passive income. While you need money to make money with investments, you don’t have to go big at first. You can invest smaller amounts, and build up your portfolio over time.
CD stacking is an example. Say you have $1,000 in discretionary income each month. You can open separate CD accounts every month for a year. By the end of the year, you’ll have 12 CDs earning interest, perhaps at different rates. When the terms expire, you can reinvest your principal and interest. Or you can use the money to fund a business project or your lifestyle.
Dividend stocks and annuities are other investments you can use to generate passive income. The difference between these and a CD ladder is that you may see more immediate cash flow. Dividends might pay out quarterly, while some annuities can pay monthly. However, you’ll want to check the terms of annuities since some have time restrictions on payments and withdrawals. For instance, some monthly payments may not kick in until you reach retirement age.
E-Books
Let’s say you know a lot about a subject, but you’re camera shy and filming yourself talking about your passions isn’t for you. That’s OK because there are other ways to share your knowledge while building passive income. Publishing e-books is one of them.
If you express yourself well in writing, you can create and sell your advice in the form of books. You might try inking a deal with a traditional publisher, but you don’t have to. Online self-publishing platforms let you publish and sell digital books.
With self-publishing, you usually get to keep a larger percentage of your royalties. But you might still want to hire an editor to polish your writing before you release it to the public. Some writers also work with designers to help create graphics and images. When all is said and done, you’ll have a product you can keep selling to earn passive income. Plus, you can add to your earnings by writing additional e-books as part of a series or on different topics.
Your Income Doesn’t Have to Come From a Job
There’s nothing wrong with honest, hard work. But if you’re ready to leave the daily grind behind, earning a living through passive income may be for you. Building those income streams can help you achieve your dream lifestyle and freedom from the rat race. You’ll work toward your vision instead of helping someone else reach their vision and life plan.
While passive income sources may not let you leave your job behind overnight, the opportunities to scale are there. You’re not limited to one or even a few ideas. By following what inspires you, you’ll find there are ways to monetize those interests. With effort and time, you’ll be living the lifestyle you’ve only imagined.
