Opinions expressed by acecashflow contributors are their own.
Many people associate work with punching the clock, the 9-to-5 slog and saving for retirement. The trouble is, an hourly rate alone will never make you wealthy and drains your most precious resource: time. Fortunately, you have alternative strategies. Unfortunately, you’ve probably never heard about them, as they’re usually reserved for the super-rich.
Multimillionaire entrepreneur, angel investor and member of The Oracles Nik Halik wants to change that. “With the right money-building strategies, you can buy back your economic freedom and free up the hours necessary to manifest your highest goals.”
Halik knows something about mastering time. He may be the living embodiment of the Latin maxim “Carpe diem.” After investing in property and the financial markets to earn himself total financial freedom in his twenties, he’s become a best-selling author and founded several successful financial consulting companies.
As an extreme adventurer, he’s also climbed Mount Kilimanjaro, HALO-skydived above Mount Everest’s summit, broken the sound barrier in a MIG-25 jet and deep-sea dived to the shipwrecked Titanic to have lunch. He even became a certified Russian-trained cosmonaut, rocketed to the edge of space and served as a backup for the “Soyuz TMA-13” NASA flight to the International Space Station.
In his new book, “5 Day Weekend,” Halik shares how to live a life rich with purpose, while living a “5-Day Weekend” lifestyle. From an entrepreneur whose companies have impacted more than one million lives in more than 51 countries, here are five fundamental ways to game the grind, multiply your money, and set yourself financially free once and for all.
1. Reclaim your cash.
“The foundational step is putting your house in order and stopping the leaks in your financial bucket,” explains Halik. “More than 10 percent of people’s income is lost to Uncle Sam, big banks and Wall Street. Get immediate cash flow by reclaiming income drained from these sources.”
One way to do this is by looking for hidden fees in conventional investments, such as 401Ks and IRAs. For example, if you opt in to receive paperless documents electronically, most IRA custodians will waive all maintenance fees. You can also avoid an advisory fee by using a self-directed IRA, rather than one managed by an advisor.
2. Pay yourself first.
“Many people pay themselves last,” Halik points out. “Pay yourself first.” As a reminder to do this, he used to send himself a monthly invoice.
Another way to ensure that you’re prioritizing your income is by creating a “sweep account” that automatically transfers a percentage of your monthly income into a savings fund. “Save at least 15 percent of your income,” insists Halik. “It can then be used as seed money to fund future opportunities and investments.”
3. Create your own bank with ‘The Rockefeller Formula.’
Instead of borrowing money, Halik recommends setting up a properly structured, overfunded whole life insurance contract that builds cash value, and then borrowing against the accumulated funds.
Along with the Rockefeller family, this strategy was used by Walt Disney, J. C. Penney, the Rothschild family, JFK, Roosevelt and even John McCain, who secured financing for his 2008 presidential campaign by using his life insurance policy as collateral.
“Once your policy has built enough cash value, you can take out a loan against your policy at any time and for any amount up to 90-plus percent of the cash value,” explains Halik.
4. Build seed capital with a side hustle.
Once you have a rock-solid financial baseline, accrue more cash with a side hustle. “It’s not about working more hours, it’s about creating another income stream that’s entrepreneurial,” shares Halik.
To best analyze income opportunities, he recommends finding the critical intersection of your passion, skills and what customers want. From ecommerce to consulting, there’s a breadth of options: Pick one in demand and test it in the marketplace with a small initial investment. If you get traction, double down to make your concept more efficient.
“The key is simply to start somewhere. But ideally, your side hustle should be scalable.”
5. Invest in passive income streams.
Once you’ve increased your cash flow with multiple income streams, it’s time to make your income less active and more passive. “While it’s not true that you need money to make money, it is true that you need money to invest,” Halik admits. “Start small and learn as you go.”
He recommends scaling your side hustle by hiring people to run the business for you. Use your freed up time to focus on creating passive income opportunities. Once you’re making passive income from low-risk, conservative investments, explore high-yield, high-risk investments to fast-track revenue growth,
“Investing in high-yield investments like private equity, cryptocurrency or gold and silver speculations is a key part of building wealth, but first, do your research,” cautions Halik, who recommends books, podcasts, and talking to trusted advisors with proven results to discover such opportunities.
Ultimately, with the right strategy, planning and mindset, he believes that anyone can buy back their time. “Choose to be its master.”
Whether you have your own blog or website it can be astonishingly easy to make money online, so much so, you don’t necessarily need either.Listed below are excellent ideas to make money online, for a full-time income or just to give you a little extra money each month.
Make Money Online Idea #1: Make a YouTube Channel
I published my first video on my YouTube channel on October 6th, 2016. It was so crappy. It was a video of me traveling to Portugal to celebrate the success of my first online business idea. The entire trip was recorded from my iPhone.
It took 6 months before I made my first $1 from YouTube.
Those 6 months were brutal. The only people that were watching my videos was my mom and dad. And the entire process just felt like a waste of time.
There were many times that I just wanted to call it quits and to focus on something that made me more money for the time I was putting into it. But luckily, I continued to pump out more and more videos.
After a year of consistently publishing 2-3 videos a week, I now make an extra $50-$80/day simply by the ads that run before my video is played.
The reason why I love this online business idea is because these videos will last forever. And the views that I receive on a daily basis still remain consistent even if I don’t post videos for a while.
Here is how this business idea makes money:
Google pays you to run ads on your videos
Affiliate sales by recommending products in the description
Driving the traffic to your blog (most recommended)
Once you have a good amount of videos up, YouTube can provide constant flow of traffic to your affiliate offers and products or services. Its this constant flow that gives you the ability to make money in your sleep.
Here’s how I got started:
Research the niche that you want to get into
Find videos with high views and low subscribers
Make 10-15 videos about those similar topics
Once you have those corner stone videos getting views from being shown in the related videos on the similar videos you modeled, consistently pump out at least 2-3 videos a week
Watch your subscribers slowly grow over time
This is the exact process I used to go from zero subscribers to now around 250-500 subscribers a day.
Make Money Online Idea #2: Blogging
As awesome as YouTube is, blogging is far more powerful. Why is that you ask?
Well for one, when people are viewing your YouTube videos, you technically do not own any of those viewers; YouTube does. In most cases it’s no problem, but all it takes is one mistake with YouTube’s terms & conditions and you’re out of a business.
Blogging is different. You are the one that owns all the traffic that comes to your site. Meaning you will always be in business as long as you focus on providing value.
I didn’t start focusing on this business idea until the beginning of 2017.
All I regret is one thing: I wish I would have started sooner.
Not only has blogging allowed me to help impact more people, it has also given me the ability to showcase all of my best resources for teaching people how to make money online in one place.
When I first started blogging, I was not computer savvy at all and had no idea how to create a blog. But luckily, Bluehost (the hosting service that mikevestil.com was initially built on) helped guide me throughout the entire process, and I had my blog up and running in no more than 10 minutes.
1. Blogging – naturally this is my first suggestion and can be very lucrative. It does require you to create a blog, build on the content for a few months in order to generate followers and visitors, encouraging search engines and content readers to visit and buy from advertisements or your own uploaded information documents
2. Create your own online store – online businesses such as eBay, Amazon and Zazzle provide you with the tools to create your own online store, offering products for sale, often without the need to store yourself as you can advertise products, prior to purchase, for a higher price, arranging despatch and delivery from your supplier direct to the customer
3. Online Assistant roles – there are various websites which advertise admin and data entry type jobs where you provide a typing, translation or proofreading service for an hourly rate, set fee or negotiated amount without you having to leave your front room. The requirements are set out in the job advert and you then offer your services to the advertiser
4. Write books, articles or instructions/courses – if you have story ideas, a skill that you can teach others or want to provide advice on a specific subject, why not write your own material. If you can tell someone or demonstrate something it is possible to turn this into an eBook, upload onto a marketplace and sell this to others.
5. Create YouTube video tutorials – similarly, instead of getting this in writing, why not record yourself, a presentation or screen capture video, upload onto YouTube and advertise your skills. Placing advertisements alongside this can generate a tidy income. Also advertising your own website or blog, eBook or products for sale.
Make Money Online Idea #3: Sell an Ebook
So after my initial success, I began traveling the world. The entire time I was traveling, I wrote down stories on my blog on what happened, the things I’ve seen, and the lessons I’ve learned.
Once I had enough content, I went over to Kindle and uploaded all of the content on there. I then went to Fiverr.com and had someone make me a book cover for only $5. That was the birth of The Lazy Man’s Guide to Living the Good Life.
One of the benefits of creating a blog is that you can monetize all the material on it in a more organized fashion in the form of a book.
For those that love the 4 Hour Work Week by Tim Ferriss, all that book was was a compilation of all of the old blog posts on Tim Ferris’ blog.
I ended up following his footsteps.
Even though my sales suck compare to the 4 Hour Work Week, I am still able to get an extra $100 – $200/ month profit without investing any more time into it.
Most people would see this as pennies compared to the other money making ideas out there, but the power of writing books is that it will exist forever.
This is income that has consistently been coming in and it’s not going anywhere.
And ever since I moved to Chiang Mai, Thailand to focus on my YouTube channel and my journey towards financial freedom, it’s enough to pay for my fully furnished apartment while I run around Asia building my personal brand.
Here is the action steps you can do to get started:
Create a blog
Document your entire journey to building your first online business from any of these ideas on this blog post
Naturally people will find you from the search engines and begin following your story
After you get your first major success, package all of your blog posts into an eBook and paperback book for free on Amazon Kindle
The visitors of your blog will naturally see your book
They will end up buying it because of the value and inspiration that you have already provided to them
I never thought in a million years that I would become “an author.” I was a C+ writer in high school at best. But there is this crazy feeling you get once you finish a book. You begin to realize that the book will last forever long after you’re gone. And that it has the power to impact millions, leaving a legacy that you can be proud of.
The only question now is what legacy will you be leaving behind when you are gone?
Make Money Online Idea #4: Sell a Course
So if you focused your attention on building up a YouTube brand and a blog, naturally people will want to learn directly from you. They will thank you for all the free content that you have given them, and they’ll tell you how it was all life changing.
I remember when I got my first thank you email or snapchat message of how my free content on my blog and YouTube channel had helped someone make their first $100 online. It was mind blowing. I didn’t know how much of an impact I was actually having on people.
And these people that you have helped get initial success..
They will want more.
When I first got to this point, I tried helping everyone one on one as much as I could. But as my brand grew, I started to lose my time because I couldn’t help thousands of people personally every single day.
So to make things easier for myself and for everyone else, I ended up making a course. I realized that every single person I taught, I taught the exact same thing. So if I could organize them all into a video screen share tutorial, then it would give me the ability to impact more people.
6. Sell your own photographs – everyone today has a digital camera and there are many superb photographs taken every day. It was recently reported that there have been more photographs taken this year since then ever before. Everyone takes selfies, spontaneous photographs as well as those who do this for a living. Get your photographs uploaded to a stock photography site and earn an income every time someone buys one.
7. Affiliate marketing – this involves you advertising for sale other peoples’ products and, on making a sale, receiving a commission for that sale from the owner of the product. This can involve the creation of a website and advertising on this or creating advertisements, placing these on others’ websites to generate interest and hopefully a sale.
8. Create and sell unique items – jewellery for example. Other items include paintings, furniture, clothing, ornaments and so on. Once created, advertised on your own or others’ online shops for sale and generate an income. These can also be uploaded for sale on eBay, Amazon and other similar marketplaces.
9. Teach online – if you have a skill, specific expertise in a subject or have a hobby at which you excel, why not create a website offering hints, tips and advice. You can then go on to sell tutorials in eBook, video or audio formats.
10. Market research – there are numerous companies who pay website visitors to review products, websites and information sites and provide feedback and comments. This is then used by that company to advise their clients, make improvements or select specific products which perform well. payments from these companies vary from discount vouchers, point collection and turn this into cash or free products in return.
Make Money Online Idea #5: Affiliate Marketing
Now as your brand grows because of the amount of value you provide, your audience will begin asking for more products that have helped you out.
For example for me, people wanted to know the exact softwares I was using to run my business.
The two major ones that I use are Shopify for anything eCommerce related and Clickfunnels for anything sales funnels related.
And since these two had affiliate programs, I would get a commission whenever I would recommend these products.
I would have recommended these products regardless. But with affiliate marketing, I get paid to share the products that I personally love using.
Make Money Online Idea #5: Product Sales Funnels
Product sales funnels are amazing. What are they? In essence, they give you the ability to sell more shit.
Plain and simple.
Product sales funnels have these things called up sells, down sells, cross sells, all of these increase the lifetime value of a customer.
I highly recommend product sales funnels because they are the most efficient in making high revenues with low spend on advertising.
You’re earning a living and making tons of passive income without even thinking about it!
I’d bet something like that sounds great, right?
My whole life changed when I read “Think and Grow Rich” By Neapolitan Hill and The Richest Man In Babylon” By George Clason. These book completely changed the way I though about money. They taught me to Think Big and that I could actually change my poor money habits.
I also ran into the book “Rich Dad Poor Dad” by Robert Kiyosaki as well. That book taught me the difference between an asset an a liability. In order to create a steady stream of passive income you’ll want to know the difference between an asset an a liability. It’s quite simple:
An asset is something that puts money into your pocket each month.
A Liability is something that takes money from your pocket each month. Robert Kiyosaki helped make this understanding very clear in his “Rich Dad Poor Dad” book.
Examples of assets are things like Stocks, bonds , mutual funds, rental properties, or intellectual properties.
Examples of Liabilities are things like car notes, house notes, credit cards, or boats. Basically anything that takes money out of your pocket each month. Robert said in his book to focus on acquiring income generating assets. Basically passive income. And that is what this blog is about!
What really is Passive Income?
Passive income is income that you’re not generally involved in from a day to day basis. Unlike what is commonly know as a 9-5 job. It doesn’t mean that your’e not involved in the creation of the passive income assets. It just means that it comes your way passively. You don’t have to do any specific thing to generate the daily income.
You have to create it or make some sort of investment in the beginning that in turn generates the flow of passive income.
Opposite of passive income is what we call active income. Most of us are very familiar with active income. Active income is income that only generates if you put the hours in. Similar to a job really.
You work a certain amount of hours and then you’re paid for the exact amount of hours you work. It means that your income is limited to what your physical body and time can do.
It is also the type of income with highest taxes believe it or not.
Passive income generally falls withing the following categories:
Portfolio income and paper assets. Examples of portfolio income are stocks, bonds, and mutual funds.
Real estate income. Could be property that you own and are renting out.
Intellectual properties. These are patents, trademarks, books you’ve written. It also includes music royalties and publishing. Rights to recorded masters.
Other types of passive income could be things like: Income from ATM machines, bubble gum machines, rentals of a boat you own, and peer to peer lending.
The rule is that the income is generated passively and that’s what we’re focusing on here.
Here’s the list!
26 Passive Income Ideas You Can Do Now That Will Make You Money While You Sleep:
We want to think Jeff Rose for coming up with the first 25 Passive income ideas below from his blog goodfinancialcents.com.
You will note that we’ve added a few of our own ideas too!
1. Peer to Peer Lending with Lending Club
There is probably no passive income that is more perfect than earning interest on safe investments, such as U.S. Treasury securities and bank certificates of deposit. The problem of course is that those instruments pay paltry returns – generally less than 1%. It may be passive income at its finest, but you’ll never be able to relax or retire on returns that are that low.
That makes now the perfect time to talk about Lending Club. It is a web-based peer-to-peer lending platform where people come to get loans, and investors – looking for high interest opportunities – provide the funds for those loans.
Lending Club provides an opportunity to earn interest rates in excess of 10% per year – which is about 10 times what you will earn on more conventional interest-bearing investments.
Now let’s be clear on one point: those high rates do come at a cost. Unlike bank investments, Lending Club loans can go bad, in which case you will lose principal. However, there are ways to minimize those potential losses. I talked to a LendingClub adviser and they recommend starting out with an initial deposit of $2500. Since you can invest as little as $25 in a single loan, you can actually buy into 100 different loans with a deposit of that level. So you don’t have to worry about a single loan going bad and ruining your investment.
Despite the risk of default, it’s very likely that you will earn far more on your investments at Lending Club than you will at a bank and I have averages just under 9% during the eight years I have been investing with them. That is a nice residual income stream. Investing larger sums of money in different ways can be beneficial, whether it be where to invest 10K or where to invest 100K, we can help you get a better understanding of how to invest your money.
2.Use Fundrise to Invest Passively In REITs
If you want to invest in real estate, but you don’t want to be as hands-on with your investments, then you should look at Fundrise.
Fundrise is a REIT, which is a real estate investment trust. Just like with other investment trusts, these are basically pools of money which are managed by financial professionals.
With a REIT, all of the money is going to be invested in real estate. The REIT owns the property, and you don’t have to worry about handling the landlord duties.
One advantages of Fundrise is you can start investing with as little as $500. With other real estate investments, you’ll have to have a lot of money saved up to start, but Fundrise lets you get into the real estate business with just your Christmas bonus money.
While Fundrise can’t predict the future, and you never know how well the investments are going to perform, they do have some great returns in the past. In each quarter of 2017, they have posted returns between 9.65% – 10.88%.
Obviously, these are much higher than you’re going to get with most other investments.
They have several different types of accounts you can choose from:
Goal Based Investing account
Each of them has different pros and cons you’ll need to consider when you’re looking to get in the real estate investment game.
3. Store your money in a High Yield Savings Accounts
Ace Cash Flow – I was pretty amazed at how high the interest payments were on my online savings account. I have received much more from these type of savings accounts than savings accounts opened at standard banks. An example is Capital One 360 savings account. It’s an excellent online account and pays a decent amount of interest.
With Capital One 360 you can even create up to 20 sub accounts right online. Create plans for vacation or school or any other project you want to add a special savings account name for. Pretty cool!
Savings accounts might be the most boring investment ever invented, but they are also the safest. If you are used to your run of the mill bank where you can walk in and talk to someone, then you probably think the interest earned hardly qualifies as income.
Online banks hit the scene in the late 1990s and have been able to provide much better interest rates to their clients than their traditional cousins. Now, you can get savings account rates that are as good as a CD without locking in your money for several years.
This is also a great option to stow away your cash and create a little passive income while you are looking for a more lucrative investment option
4. Try out Investing with a robo-advisor or simular
Putting money into an account and letting an algorithm manage the investments is about as passive as you can get. Robo-advisors like Betterment allow you to set your willingness for risk in the market and then manage the account for you.
The algorithm will do all the work for you and keeps your portfolio balanced. The fees are very reasonable and much less than with an account managed by a person. There are currently two main players in the robo-advisor game:
I have been a long time supporter of betterment and even did an interview with their CEO in my Betterment investing review. Similar to Wealthfront, Betterment is great at reducing any taxes you have to pay on your investments and they work with you to give you the best financial advice through their algorithms. Unlike Wealthfront, you can actually talk to a human being if you want to. Betterment charges the same fees as Wealthfront, but does not wave the fee on the first $10,000 you invest.
My personal experience with Betterment is that their platform is really slick and the investments are very sound. I don’t think you can go wrong with either service, but if I am investing a large sum to create a passive income investment, then I would go with Betterment.
My original evaluation of Wealthfront found them to be just OK, but they have made great changes over the last couple of years that make them even or better than Betterment for many people. Their strategy for reducing your tax burden is very well planned out and they have show to be competitive with any robo-advisor on the market. Their new PATH platform gives you a comprehensive view of your finances, putting them on part with Mint or Personal Capital.
What really sets Wealthfront apart from the others is that they charge you no fees for the first $10,000 that you invest with their service. This is a big deal for small investors who want to see their initial investments have the largest impact possible.
5. Check out index funds. It could work out for you
Index funds are a type of mutual fund that provide you with a way to invest in the stock market that is completely passive.
For example, if you invest money in an index fund that is based on the S&P 500 Index, you will be invested in the general market, without having to concern yourself with choosing investments, rebalancing your portfolio, or knowing when to sell or buy individual companies. All that will be handled by the fund which will base the fund portfolio on the makeup of the underlying index.
E*Trade is our recommended online broker for buying index funds. They make the research and process of investing into different funds very easy.
We recommend them over other options because if you ever start to look at other types of stock or mutual fund investments (see #5) you already have the account set up and it is easy to move your money over. On top of that the cost to get your account going is super cheap and the cost per trade very affordable.
With any broker you are free to choose a fund that is based on any index that you want. For example, there are index funds set up for just about every market sector there is – energy, precious metals, banking, emerging markets – you name it. All you have to do is decide that you want to participate, then contribute money and sit back and relax. Your stock portfolio will then be on automatic pilot.
If you are looking toward retirement with your money then we would look at opening a Roth IRA. It will shield your savings from any future taxes and you can withdraw all earning tax free once you hit 59 1/2. It is one of the best ways to save money for retirement.
6. Make money doing things you already love doing
Yes, you can make some money doing some of the things you’re already doing.
For example, InboxDollars allows you to make money by searching the web, shopping online, playing games, and more! Swagbucks also allows to to make money doing similar activities. It’s amazing. Take advantage of the compensation plan on each of these websites and make some extra money!
You can also make your own schedule with Uber and pick up extra income by driving others around when you are already out and about anyway!
7. Get cash-back rewards on credit cards
If you’re already using credit for some of your purchases, pursuing credit card rewards is an absolute no-brainer. Most top rewards cards let you earn anywhere from 1-5% back on your money, and that’s with almost no effort on your part!
If you’re already using credit for convenience, you can also earn a huge sum of cash in the form of a signup bonus. The Chase Sapphire Preferred® card offers one of the best opportunities out there. After spending just $4,000 on the card in 90 days, you’ll earn 50,000 points worth $500. On top of that, if you add your spouse as an approved user, you score an extra 5,000 points. That works out to 59,000 points for just $4,000 of spending you were going to do anyway.
Even people who don’t spend a lot can normally put that much on credit if they charge regular bills, groceries, gas, insurance, and all of their other expenses on a regular basis.
Our post on the top six cash back credit cards for 2017 offers an array of additional options to consider as well. With the right card, you could earn anywhere from 1-5% back on your money with almost no effort on your part.
8. Use your skills as photographer and put it to work
Do you like photography? If you do, you may be able to convert it into a passive income source. Photography websites such as Shutterstock and iStockphoto can provide you with platforms to sell your photos. They may offer either a percentage or a flat fee of each photo that is sold to a site client.
In this way, a single photo could represent a residual income opportunity, since it can be sold again and again. You simply need to create your photo portfolio, put it on one or more photo platforms, and then the activity becomes completely passive. All the technicalities of the photo sales are handled through the web platform.
And yes, that’s me in a stock photo you can purchase from iStockPhoto.com. My wife is a good photographer and has uploaded a few hundred photos to their platform and makes a good monthly residual income from it.
9. Write an ebook
Ace Cash Flow – I’ve writted a few eBooks and if marketed correctly, they can be an excellent passive income asset. Use your expertise and put it in the form of an eBook. After you create this asset it will be yours forever! And the great thing about eBooks is they never run out of copies! It’s digital so production costs are pretty low!
This can be a lot of work upfront, but once the ebook is created and marketed it can provide you with a passive revenue stream for years. You can either sell the ebook on your own website or offer it as an affiliate arrangement with other websites that provide content related to your ebook.
After speaking to sever ebook authors, many of the tell me that the time spent putting these books together feels like finding free money by the passive stream of income they have today.
10. Sell and create your own products to sell online
Ace Cash Flow – Nothing works better than creating and selling your own product. We discussed affiliate marketing in a different post as well as network marketing too. But, if you’ve got your own product,,the ROI will be much higher than affiliate marketing!
The possibilities here are endless – you can sell just about any product or service that you like. It could be a product you have created and can manufacture on your own or it could be digital in nature (such as software, DVDs, or even instructional videos).
You can set up a dedicated website for this product or service, unless of course you have a website or blog already in place. Alternatively, you can also sell it on an affiliate basis, either by offering it direct to websites and blogs related to your product or service, or through a platform such as ClickBank.
If you make a lot of money in your current job and you’re not sure that you can make a similar amount by selling products online, think again. Awhile back, I interviewed Steve Chou from MyWifeQuitHerJob.com. In our podcast interview, Steve explained how his wife quit her job to become a stay-at-home mom.
Now, being a stay-at-home mom is a full-time job – but Steve Chou’s wife also started an online business that replaced her former salary and started bringing in a six-figure income! Wow, right?
You can learn to sell products online too and make quite a bit of money. While it’s not entirely passive, it’s certainly more passive than getting up and heading out the door to work every morning!
11. Invest in real estate and properties
This probably falls more in the category of semi-passive income, since an investment in real estate is always at least a little bit of an active venture. Still, once you have an investment property that is established and fully rented, it’s mostly a matter of managing the property and keeping it performing well.
Additionally, there are professional property managers who can manage your property for you, usually for around 10% of the monthly rent. This professional management can make the investment much more passive, but will take a bite out of your cash flow.
According to Brandon Turner, an active real estate investor and co-host on the popular BiggerPockets Podcast,
“The key to success with rental properties is buying smart. Not every investment property is going to provide a good return or prove to be passive. Understanding how to analyze potential real estate opportunities is incredibly important. As the old adage goes – you make your money when you buy!”
Another benefit of investing in rental properties is the loan pay down. If you obtain a loan to buy the property, each month your tenants are paying off part of the loan. Once the mortgage on the property has been paid off, your cash flow will increase dramatically, allowing your mediocre investment to skyrocket into a full-fledged retirement program.
It wouldn’t take many paid-off properties to provide a pretty great, and mostly-passive, future for you and your family.
12. You could also make YouTube videos
This is a venture that is growing rapidly. You can create videos in just about any area that you like – music, tutorials, opinions, comedy, movie reviews – anything you want . . . then put them on YouTube. You can then attach Google AdSense to the videos, which will overlay your videos with automatic ads. When viewers click on those ads, you will earn money from AdSense.
The keys will be to create compelling videos, to promote those videos on social media websites, and to create enough of them that your income will be coming from multiple sources. There’s a good bit of work that goes into creating videos, but once a video is done it can become a completely passive cash flow source for a very long time.
Ace Cash Flow – Think of this like flipping houses except it’s flipping websites! You could buy into an online asset already created. It takes time to create blogs like this one here at acecashflow.com. Purchase a website is an excellent idea if you don’t want to have to build it yourself!
Thousands of blogs are created every year, and thousands are either completely abandoned by their owners sometime afterward. If you can buy blogs with a reasonable amount of web traffic – as well as a demonstrated cash flow – it could be a perfect passive income source.
Most blogs employ Google AdSense, which provides a monthly revenue stream based on ads that Google places on the site. There may also be affiliate programs generating additional revenue. Both income sources will be yours once you purchase the blog.
From a financial perspective, blogs usually sell for 24 times their monthly income. So if the site generates $250 a month in income, you can likely buy it for no more than $6,000. Translation: a $6,000 investment will buy you $1,500 per year in cash flow.
You may even be able to purchase the site for less than 24 months earnings, if the site owner is particularly anxious to get out. Some sites have good “evergreen” content that will continue generating revenue even years after the site has gone silent. So a simple $5000 investmentcan net you ongoing passive income.
Bonus tip: If you were to buy such a site, and then to reinvigorate it with fresh content, you may be able raise the monthly revenue enabling yourself to sell the site at a later date for substantially more than what you paid for it.
Finally, instead of buying a blog, you might want to create your own blog. My blog currently generates a nice passive income stream from content that I published years ago. It’s by far one of the best business moves I’ve made.
Reducing a fixed expense is the financial equivalent of creating passive income. This is certainly true when it comes to credit cards. Let’s say that you owe $10,000 on a credit card, on which there is a monthly payment equal to 2% of the balance, or $200 per month.
By paying the card off, you’ll be free up $2,400 per year in cash flow that would’ve gone to the monthly payments.
That’s like getting a guaranteed 24% return on a $10,000 investment. Good deal?
Much like writing an ebook, there’s a lot of work upfront. But once that’s done, and the book goes into the sales stage, it becomes a completely passive venture.
This is especially true if you can sell the book to a publisher who will pay you royalties for the distribution and sale of the book. You’ll get a percentage of each sale made, and if the book is fairly popular, the royalties could be substantial. Just as important, the royalties can continue flowing for many years.
Mike Piper from OblivousInvestor.com did just that. He wrote a book, Investing Made Simple, which was sold strictly on Amazon. He had decent success with the first book that he created an entire series of book. Those books now net him over 6 figures per year in residual earnings. Not too shabby.
16. Set up a website selling a product
If there is a product that you are particularly knowledgeable about, you may be able to sell it on a dedicated website. The technique is similar to what you would use for your own product, except that you will not to be concerning yourself with product creation, but only with the sale of someone else’s product.
You may even find after a while that you are able to add other products that are related. Should that happen, the site could generate substantial revenues.
If you are able to have the product drop shipped to customers directly from the manufacturer, you won’t even have to get your hands dirty. That may not be 100% passive, but it’s darn close.
17. Invest in real estate investment trusts (REITs)
In #10 we talked about investing in real estate. But let’s say that you want to invest in real estate, but do it in a truly passive way. You can do that through a real estate investment trust. This is something like a mutual fund holding various real estate projects. The fund is managed by professionals, so you never have to get involved.
One of the big benefits of investing in REITs is that they typically pay higher dividends than stocks, bonds, or bank investments. You can also sell your interest in a REIT anytime you like, which makes it more liquid than owning real estate outright.
18. Become a business silent partner
Do you know of a successful business that needs capital for expansion? If so, you can become something of a small-time angel investor and provide that needed capital. But rather than offering a loan to a business owner, you can treat this as a business opportunity and take an equity position in the business.
In this way, the business owner will handle the day-to-day operations, while you will act as a silent partner who also participates in the profits of the business. You will probably want to look at some business credit card offers in order to get a feel for how to manage your business finances while keeping tracking of how your partner is handling everything.
19. Become a referral source
Every small business needs referral sources in order to maintain sales. Make a list of small business providers that you use on a regular basis and feel you can recommend to others without reservation. Then contact the owners and see if they have any kind of cash referral marketing offers available.
You can do this with accountants, landscapers, electricians, plumbers, carpet cleaning services – the list is endless. Keep a list of these businesses, and be ready to refer them to your friends, family and coworkers. You can earn a fee on each referral just from talking to people.
Don’t overlook referral programs at work either. If your company offers a referral bonus for either new employees or for new customers, then take advantage of that plan. It’s easy money with virtually no work.
20. Rent out unused space with Airbnb
Airbnb is a concept that has only been around for a few years, but it has exploded around the globe. Airbnb allows people to travel all around the world and to stay in accommodations that are a lot less expensive than traditional hotels. They do this by staying with participating Airbnb members who rent out part of their homes to travelers. By participating in Airbnb, you can use your residence to accommodate guests and earn extra money just for renting out space in your home.
How much you will make will depend upon the size and condition of your home and your location. Naturally, if your home is located in a high cost city, or close to a popular resort, your income will be much higher. It’s a way of earning money on space in your home that might just be sitting empty otherwise.
21. Build an app
Apps can be an incredibly lucrative income source. Think about how many people today have smartphones. Come on, it’s just about everybody! People are downloading apps like crazy – and for good reason…
Apps make people’s lives easier. Whether it’s an app that helps people put together nice pictures for their blog or an app that keeps track of tasks, there are helpful apps out there for everyone.
You might be asking if there are so many apps out there, why would you want to attempt to create an app? Isn’t there a lot of competition? Well, yes, but fresh, creative ideas can win. If you can come up with something unique, you can make quite a bit of money. Simple – yet unique – apps can be pretty passive.
Second, you can hire a developer to build your app based on your idea. This could end up being an expensive option, although it will probably yield a professional-looking app.
The end result is an app that has the potential to make you some relatively passive income. Don’t downplay the idea to build an app – it’s a good one!
22. Create an online course
Everyone is an expert at something. Why not create an online course about your passion?
My buddy Ramit Sethi at IWillTeachYoutobeRich.com is an expert at creating online courses. He has made an insane amount of money selling his lessons. Most people would be happy making a fraction of what he makes online.
There are a number of ways you can produce and host your own online course. One very simple way is to use a website like Teachable.com. Teachable as over three million students and is a great way to get your content in front of others for their consideration.
Once you create an online course, it can work for you while you sleep!
What do you put in your online course? Good question. You can add video lessons, checklists for completing steps you recommend in your video lessons, small ebooks to supplement the lessons, audio files for people listening while traveling, informative interviews with likeminded experts, and a whole bunch more!
In fact, you can create several packages at different price points. Some people will want everything, so you can include ‘the works’ for the highest price point and then have two lower price points so that you can receive the largest possible volume of orders.
A good example of this comes from Pat Flynn’s website, SecurityGuardTrainingHQ.com. On the website, he has a map of the United States that allows someone to click on any state to see the security guard requirements for that state.
By providing specific information in a guide-like format, you can make money through some of the means already addressed: advertisements through Google AdSense, affiliate links, and even memberships you can sell from your online guide. It’s a fantastic idea!
24. Outsource most if not all of your business needs
If you’re spending too much of your time on an existing business running it yourself, why not outsource most if not all of your tasks? Yes, it will require you to give up some control, but in many businesses it’s the only way to free up your time so you can focus on other tasks that will result in more income.
If you don’t want to hire employees, consider hiring freelancers who work as contract laborers. Look for freelancers with a strong work ethic who provide quality results.
Here’s a list of tasks that you might want to outsource:
Social media marketing
and so much more!
Yes, many people can turn their existing businesses into passive income businesses. As long as the main product or service isn’t something only you can do, you can transform your business into a passive moneymaker.
25. Try affiliate marketing and make sales
This is a passive income technique that is better suited to people who have blogs and active websites. You can sign up to promote certain products or services on your site, for which you will be paid either a flat fee or a percentage of the amount of the sale completed.
This isn’t as hard to do as you might think, since there are thousands of companies in the world who want to sell their products in as many places as they can.
You can find affiliate offers either by contacting vendors directly, or on dedicated websites, such as ClickBank. It’s always best if the product or service is one that you are either very interested in or is highly relevant to your website.
26. Purchase high dividend stocks.
By building a portfolio of high dividend stocks, you can create regular passive income at an annual rate that is much higher than what you get on bank investments.
Just as important, since high dividend stocks are stocks, there is always the potential for capital appreciation. In that way, you can earn passive income from two sources – dividends and capital gains.
You can make this process very easy and affordable by opening an account with Ally Invest. They have one of the lowest fees for each trade and have been a long time top brokerage.
If you are interested in other brokerage accounts we have provided a good write up of all the different options.
I’ve purposely provided a long list of passive income ideas in the hope that there is something on this list for everyone.
Have you tried one of these or are you thinking about trying one of these ideas now? Leave a comment! I look forward to hearing from you.
To Sum It Up! Our Conclusion
Doesn’t this sound so much better than simply working hard for every single dollar? There really is so many great ideas to generate passive income. Many of these tools could work for you if given a shot. Always keep in mind that “earned income”, also known as active income”, is taxed at a higher rate.
Not only will you work harder for that active income but you’ll be taxed way more. Like Robert Kiyosaki says, focus on finding and acquiring income generating assets. If you do this you’ll be well on your way to building wealth! We’ve put a great list here for you and all you gotta do is Do It!