Smart passive income tips

We were always trained to learn to get a good grade and then find a job.

This sounds good for many of us. This will give you a decent salary and many other things, but it rarely brings you much sought financial freedom.

You get a job and a false sense of financial independence. No school in the world is teaching you smart passive income tips that enable you to become financially independent.

As a result, even many professionals struggle with their life when it comes to financial freedom.

What is passive income?

Financial freedom is all about how your assets and liabilities work for you. Assets put money in your pocket, while liabilities take money out of your pocket. According to this, a luxury car or a house is a liability, although you think it is an asset.

An asset always generates money even when you are sleeping. On the other hand, your dream job requires you to be physically present at the office. Otherwise, you do not get your pay at the month-end. Read more about assets and liabilities from here.

What are examples of passive income sources? Investing in the stock market, blogging, renting your house or vehicle, affiliate marketing, creating an app or website, and selling online courses are a few smart passive income sources. Out of the many sources, you can choose one or two smart things for yourself. So, let’s discuss some of the proven ways of smart passive income tips.

Passive income source #1: Invest in the stock market

Putting part of your saving into the stock market is a great way to generate a passive income. You can do this while you engage in your so-called “dream job.”

There are two ways you can earn from the stock market. The first is from the capital gain, and the other is from the dividends.

Capital gain is the price appreciation of your stock. You get capital gain when you buy a stock at a low price, and if you sell it at a higher price, the difference is known as capital gain.

Most companies in the stock market give away part of their profit as a dividend.

So now you see the secret of investing in the stock market. Buy stock of a company that pays a regular dividend at a lower price. Many people say that the stock market is a risky place.

Yes, this statement is somewhat true if we lack knowledge about the stock market. So the best thing is to learn about it before starting here. 

Passive income source #2: Join affiliate marketing or network marketing program 

Affiliate marketing works by referring the links of products or services to the potential audience and earning commissions with every sale from the affiliate networks.

So, it is also called referral marketing. Amazon Associates is one of the most popular and highly trusted affiliate marketing programs on the web.  Though the Amazon affiliate network is a big fish because of its reputation and popularity under the sun, many other fish in the sea have different commission structures.

Many affiliate networks give even more commissions than Amazon affiliate networks. You just need to dive into the ocean of possibilities and find the opportunities per your interest and ability.

eBay partner network and AliExpress Affiliate pay variable commissions up to 40 to 50%. You need to set up a website with referral links to the products that provide referral income and then optimize your website to attract like-minded visitors.

As soon as your website visitors will pay for the products/services through your referral links, you will get your commissions from the affiliate network providers.

Passive income source # 3: Income from renting part of your house or renting your vehicle

Rental income is a very common way of income for most people. This might include both house and vehicle rental.

You can invest and buy an estate and then give it out for rent, or you can even rent part of your house for a regular passive income.

You can earn a decent amount from the rented home every month. The same applies to a vehicle. There are many online platforms where you can register and rent your home, such as Airbnb.

Passive income source # 4. Create a blog, YouTube channel, or mobile App

Blogging, YouTube vlogging (video blogging), and publishing an informative app are excellent ways to set up a long-term passive income. You can post ads on your online property and earn on a pay-per-click (PPC) or pay-per-view (PPV) basis.

Google Adsense is the most trusted site where you can register your blog, YouTube channel, or app to earn an income.

There are many other companies where you can register your online property as a publisher and publish ads. The more traffic you will get, the more the chances of getting hit on the ads. Consequently, you will start getting your passive income.

Passive income source # 5. Develop a product to receive royalty

Developing your products and selling them online is the new trend in the online space. What are the products that generate royalty?  Photos, a song script, a book, online course are a few examples.

There are many stock image websites where you can upload high-quality original photographs and sell them online. You can also write and publish eBooks and sell them online. Writing eBooks on non-fiction topics like motivation, business advice, life coaching, digital marketing, etc., and publishing them on popular platforms like Amazon Kindle Direct Publishing and Apple iTunes Connect has become a trend among content writers and authors.

Further, you can create your online course on online learning platforms like Udemy. You can use your knowledge and skills in photography, digital marketing, graphic designing, video editing, etc… You can create your course and sell it via popular sites like Udemy.

The Bottom Line

In the fast-changing world, there are many options to achieve financial independence. Smart passive income tips are more important now than before.

The recent technological advancement has opened up many avenues to achieve financial independence. Many of the highlighted passive income-generating sources can be done online. This means a lot. You can travel the world while doing it.

The mantra for a successful passive income set-up is to create something innovative and creative that the people seek. Do not focus on money. Focus on the service that you offer. If you do it right, earning money is nothing.