9 Passive Income Ideas : How I Became A Millionaire In My 20's
| 9 Passive Income Ideas : How I Became A Millionaire In My 20's |
So, you want to be a millionaire? If the idea of passive income is new to you, don’t worry; it’s not as daunting as it sounds. Passive income is earned money that comes in without any action on your part. It’s different from active income (i.e., salary), which requires regular work or effort on your part.
Renting a room in your house
There are two ways to go about renting a room in your house. One way is to use home-sharing sites like AirBnB and HomeAway, which let you rent out one of your rooms or even the whole house for short-term stays.
You’ll need to pay taxes on this income, but it’s a great way to generate passive income while traveling the world or doing something else that takes you away from home. The main downside is that this type of business can require a lot of work (i.e., cleaning up after guests), so it’s not right for everyone.
Another option would be to find someone willing to rent just one room in their house! This can work well if there are several people living together who might need extra money.
If this sounds like something worth trying out, check out Craigslist and other classified listings websites where parents may advertise rooms they’re looking after during school holidays or other times when they’re unavailable (e.g., “Parents Wanted”).
Flip houses
In my experience, flipping houses is an excellent way to make passive income.
It’s not for everyone though. If you don’t have the skills and knowledge required, then it might be better to look elsewhere for a passive income stream.
For example, you could work with websites or apps that pay per click (PPC), which is a type of advertising where companies pay you every time someone clicks on their ad.
You can also create an e-book or course and sell it through platforms like Udemy or Skillshare, but those methods can take longer to start earning money than flipping houses.
There are lots of ways to make money online today — that much we know — but if your goal is truly financial freedom, then consider adding real estate investing into your repertoire!
Start a business
The best way to start a business is to find something you love that the world needs. If you don’t have the skills or resources required to run it, start small and grow it over time.
Your passion will keep you going when things get tough and keep your focus on what’s important: your customers’ needs and desires. Find out what they’re looking for (you can do this by asking them or watching how they interact with other products in your niche). Then make sure it’s delivered in an exceptional way!
The key is making sure there is room for growth — that means identifying an area where there isn’t much competition yet so that you can get ahead of the game before others join in on the action (and take their cut).
Once again, marketing plays an important role here — to attract attention from potential clients/customers while also helping them learn more about what makes yours different than everyone else’s offerings out there right now.
Network marketing
The first thing you’ll want to do is find a good network marketing company. This can be difficult, because there are so many out there and not all of them are legit.
Ask around for recommendations from people who you know or trust, or look on online forums for reviews. Once you find a company that seems reputable and trustworthy, sign up as an affiliate member.
Once you have your affiliate membership set up, do what the other members are doing! You probably won’t make much money at first — I made zero dollars my first year — but don’t get discouraged; just keep trying new things until something sticks! If nothing else works, try switching companies (I switched to another one).
Eventually, I was able to build up enough momentum through my hard work that it started paying off handsomely for me — and once it did start paying off I realized that this could become my “passive income” source in addition to being able to replace my full-time paycheck ! I now have a steady income from my affiliate marketing business — and it’s growing every year.
Create an online course or blog
Once you have a product or service that people want, share it with them. This can be done through an online course or blog that teaches what you’re offering, or even just by creating a space where your audience can hang out and ask questions.
You shouldn’t expect to make money right away, but instead focus on building relationships with people who will pay for your services in the future.
The best way to ensure this happens is by creating valuable content — don’t just write something because it sounds good; make sure that it’s something worth reading!
Once you’ve got some good material written down (or recorded), set up an online store where people can pay for access and download their copy of the course/ebook/whatever else they might want from you. Then move on to creating a new one!
Buy stocks and bonds
To buy stocks and bonds, you will need to open up an account with an online brokerage. I recommend using TD Ameritrade because they offer free trades and low fees. You can also get $50 bonus just for opening your account!
Once you have opened a brokerage account, it’s time to start investing! There are many different ways of investing in the stock market.
You could buy individual stocks or invest in mutual funds (which are essentially baskets of shares). Ideally, I recommend doing both because by diversifying your portfolio across multiple companies you’re able to protect yourself from losing money if one company goes under or fails.
Create a podcast/Youtube channel.
Create a podcast or Youtube channel.
I can’t stress enough how much I believe this to be true. These are two of the most passive income streams that exist, and because of that, they can pay off if done the right way.
Podcasting has been around for quite some time now, but it’s only recently started to become more popular than ever before. Podcasts have gained so much momentum lately that Apple is even starting their own podcast network!
For example: Serial by Sarah Koenig was one of the first ever podcast series released on NPR back in 2014 and it quickly became an international phenomenon with over 5 million downloads per episode within its first month!
Another example would be How I Built This with Guy Raz which features interviews with people like Airbnb founder Brian Chesky or Airbnb co-founder Joe Gebbia who talk about how they got started building their company into what it is today (both were featured prominently in Vanity Fair).
These two examples alone show just how powerful podcasts can be as both businesses were built thanks to them being featured on these shows!
Start a dropshipping business.
If you’re a beginner and want to get into the dropshipping business, I recommend starting with an ecommerce platform such as Shopify.
Once you have your website, it’s time to find suppliers! You can do this by searching on Alibaba or doing some research on sites like Quora and Reddit.
Once you’ve found a few reliable suppliers, all that’s left is setting up the logistics of your store: what products will be available, how much they’ll cost, etc.
This part might seem overwhelming at first but don’t worry — the internet is full of helpful guides that will walk you through every step of creating an online store! Now once everything’s set up and ready to go, it’s time for marketing!
The best way to market your dropshipping business is by using social media platforms like Facebook or Instagram; however if these aren’t really your thing then maybe consider getting someone in-house who knows what they’re doing (or hiring an agency) so they can help manage things like advertising campaigns or writing blogs posts about new products coming out soon.
Invest in real estate or stocks.
The first thing to know about investing in real estate is that it’s not a get-rich-quick scheme. You need a lot of money up front and you have to be willing to wait while your investment grows over time.
The next thing you’ll want to do is take some money you’ve saved up and put it into high-interest savings account with no fees or minimum balance requirements. This way, your savings will earn interest without taking any risks (you’ll have plenty of time for riskier investments later).
Once you’re ready for riskier investments, we recommend buying stocks based on the companies’ histories with paying dividends.
Dividend stocks are great because they provide passive income every month — the perfect situation for someone who wants passive income but doesn’t want all their eggs in one basket (like real estate).
The best part? You don’t even need thousands upon thousands of dollars — you can buy shares as small as $1 USD per share!
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