4 Passive Income IdeasJan 06, 2022
We're the Bowdens, and we earn passive income while living a life we love.
In this post, we'll talk about 4 passive income ideas, and we'll tell you which one we believe is the best!
1. Real Estate
Our first passive income method is real estate investing. You can buy properties and rent them out. The monthly rent from tenants becomes your passive income.
According to Fortune Builders, "One of the most popular ways to generate real estate passive income is through rental properties. Investors who play their cards right can create a steady revenue from rental income, while they also have the option to make improvements to the property and build equity."
Real estate is a great option if you have the money to invest in a property. You'll also have to invest in a property management company if you truly want real estate to be passive. Otherwise, you'll spend lots of time ensuring the tenants are following the rules.
2. Financial Investing
Investing in stocks is another form of passive income.
Fool.com says, "Fixed-income and dividend-paying securities are popular sources of passive income because they require very little work. You do the research up front, keep watch over your investment portfolio, and collect your payments. If you don't need the cash flow right away, you can reinvest those dividend or interest payments to expedite your income growth."
Investing in stocks takes a lot of knowledge about the stock market and can potentially be a big risk. Hiring a financial advisor is usually the best way to go.
3. Digital Downloads
Creating digital downloads such as teacher resources, party invitations, posters, eBooks, etc. are a great way to start your passive income journey.
You can sell your digital downloads on sites like Teachers Pay Teachers, Etsy, Shopify, or even on your own Wordpress website.
Because digital downloads are usually listed at a lower price point ($1-$20), it's harder to make significant income.
Pennies not perfection gives a list of 63 different digital download ideas here.
4. Online Courses
Online courses are a series of videos, PDFs, and other accompanying materials that teach about a certain topic. Online courses can earn you passive income because you create them once and sell them over and over.
They are similar to digital downloads, because once you create them, you're done!
However, the price point for an online course is significantly higher ($27-$997), so there is more potential to earn a greater income.
So...which passive income idea is the best?
We believe online courses are the best option because:
- they're low risk (you're not going to lose money)
- they have a low start-up cost (you only need to pay for a place to host your course)
- they allow you to impact people all over the world (anyone in the world can buy your online course!)
- they have unlimited earning potential $$$ (there is no limit to the amount of courses you could sell)
- they're easy to learn with some guidance (and we can't wait to help!)
So, what's the first step?
The first step to creating an online, passive income business with an online course is to decide your online course topic!
It should be:
- a topic you know about
- a topic you're passionate about
- a topic people need help with
In other words, you should be solving a problem.
To get a free, printable guide on passive income including an actionable exercise to help you choose a course topic, grab our free guide here.
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