I always wanted to become independent as soon as possible when I was a student. There was a burning desire to break the vicious cycle of monthly pocket money. But I did not have any education to become independent. I had not even heard of what a passive income means until reading Rich Dad Poor Dad by Robert Kiyosaki. But the world has changed completely today due to the internet availability. Undoubtedly, the best passive income ideas for beginners would stem from internet itself.
The category of employers and employees will always remain. However, the availability of resources to skill up and learn new things just at the click of mouse is creating more entrepreneurs. They are working in areas which was unknown to the world a few years back. Many of these work areas creates avenues for generating passive income. A passive income is essentially an income generating without paying everyday attention to it on a recurring basis. One of the best example is royalty payment. Recurrent royalty payment keeps coming for the copyright held and not dependent on recurrent action by the copyright holder.
Establishing avenues for generating passive income does call for effort though initial investments might be minimal. In this article, we discuss the top five passive income generating ideas for students aiming to break free from pocket money.
The age-old idea about generating passive income comes from investing. During these times the best returns are obtained passively by large investors. Private Equity placement, Venture Capital Funds are all high ticket investments with huge returns though with great risks as well. The idea of ensuring good returns via these modes is to minimize the risks involved.
Large ticket investments has narrowed down to some small ticket investments as well. P2P lending platforms have come up who do a background check of the borrowers reducing the risks for the lender. In the process, they charge a small fees for their services. Some lending platforms work in the P2B segment so where the borrowers are businesses. However, seldom these lending are small ticket.
Investing is always comes with risk and a higher risk might be rewarded higher. However, the risk of entire capital being wiped remains with high risk investments. Small ticket and rapidly low risk investments include bonds and mutual funds. It is strongly advised to invest only the disposable earnings without effecting the day to day life. As per expert opinion, you qualify to be a investor only if you can invest three-fourth of your earnings. This comes from the background of having a significant income compared to your expenses.
Passive Investing has become one of the safest methods of generating passive income. A word of caution is that you must expect a reasonable rate of return. If a fancy rerun is being promised, better to stay away from it.
Affiliate marketing is recommending products or services of others. When sales is made through your channel, you earn a commission on your sale. Affiliate marketing ranks highest in the best passive income ideas for beginners. My other article on Affiliate Marketing discusses this business model in detail. Please read the article by clicking here.
There are no big investments to be made in affiliate marketing. The risks of returns and refunds is directly taken care by the seller. However, you need to own the responsibility of recommending the right products to your followers, else you would run had risk of losing your own credibility.
One of the best places to start your affiliate marketing business is Wealthy Affiliates. Please read my review about Wealthy Affiliates by clicking here.
If you like to create content, be it writing or arts, then creating an e-book is a great idea. In case, you already have a blog, this activity becomes more beneficial to earn passive income. Creating an e-book is quite easy nowadays on Amazon Kindle. A number of tutorials are available online to help you create one.
Amazon hosts e-books and deducts a portion as fees for each sale. However, you gain a lot of exposure given its global reach. E-books are generally priced between $2.99- $5.99 and can easily be downloaded by the buyers. Payments are released by Amazon and hence protected.
E-books are as good as physical books though you don’t need to worry about finding publishers. They can be quickly produced and uploaded on the platform. Hence, time to market is much shorter. Several of them can be produced and uploaded on the platform.
Besides, fulfilling your wish of becoming an Author, it is one of the easy ways of generating passive income. So, try it out today in case, you have a knack for creating content.
Online Course Creation
In case, you have an expertise in any niche area, you can launch your course as your own product online. To know what is a niche and identifying your own niche area read my other article by clicking here.
Online courses should be launched with the objective of solving your subscriber’s problem. Skilling up, finding a job, being healthy are some general problems with lot of subscribers. You will need to understand your target audience to solve their problem. Identify your target audience and research their behavior before deciding to launch a course. It takes lot of effort to prepare a course, launch it and moreover to sell them. Upfront research of your audience makes the path smoother and enhances your potential of earning passive income.
You can launch your course from your own website or through well-known online course platforms. Teachable is one of them. However, the course must be easy to learn. Remember, your audience would be your greatest marketers. They would become your brand ambassadors if your course solves their problem in the first place.
Creating online course is worth trying. Do start evaluating this option today!
Homestay hosting is one of the fast catching passive income generator. In case, you have a house or even a room to spare, you can host it on platforms like AirBnb. AirBnb has fast caught the attention with their business model. Both the traveler and the host benefit. It is beneficial for the traveler who gets a homely stay while the host enjoys the benefits of a higher rental of their property.
In this business model, the host has to make arrangements to make a home stay comfortable. It calls for a one time investment in furniture and lighting. Thereafter, income generation is a recurrent one. For hosting, it is not necessary to rent the entire house, but even a single spare room works the purpose.
Necessary licenses applicable to the local regulations must be obtained before starting this business. AirBnb charges a small fees for hosting your property on their site. The post-pandemic period where the traveling is seeing a surge is a perfect time to start this business. Besides, this being a relatively new business model, has less competition in the market.
In case, you already have a property to spare, homestay hosting is a good way to earn passive income. In case your property is located in a tourist area, entering this business at this time does hold great potential to earn passive income.
Earning a passive income calls for your working on your passion. You must be prepared to put all your effort to set it up. Though the investment in monetary terms might be minimal, it must be compensated with the efforts in learning and creating the set-up. The knowledge economy has created lot of avenues to enjoy passive income from.home on the internet. This generation must appreciate that this number of opportunities were not available only a few years back.
Do not let this opportunity go waste and take up one area where your initial investments in efforts would guarantee lifelong returns.
Please do leave your comments on our observations on this article. I would love to hear your success story affected by this article!
2 thoughts on “Best Passive Income Ideas for Beginners”
I have been doing affiliate marketing for quite some time now, but I would like to expand it and get me some more income because I get kind of stuck at this.
Reading your article makes me think of creating an online course creation, and I am going to dive deeper into it with the further help of your other blog post, so thanks very much for the suggestion!
Thank You Lizzy for reviewing the post and your comments. All the Best for your Course Creation.