Passive Income is not a method to grow rich, it is a way to diversify your income strategy so that you continue making money without doing hard work and create financial security. However, creating a passive income takes a lot of effort but the long-term gains make that effort worthy.
What is the best way to build passive income?
Should you sell courses or ebooks?
Should you set up a dropshipping website or a membership website?
Should you build a business and sell it, or invest your money in stocks and real estate?
When you want to build a passive income, you need to see if the method is proven to make money or not, if the method you are going to use is accessible to you or not, and whether you are equipped with the skills and knowledge required or not. You also need to see if you have the resources to start building this passive income or not.
You also need to be very patient. It might take before you start earning passive income.
A lot of people believe that building passive income means making money without any great effort. Well, that’s what you hear from these online gurus. However, this is just a half-truth.
In order to build a stable passive income source, you either need to be highly skilled, or you need to have a lot of money.
Blogging, Affiliate Marketing, Writing Books, Dropshipping, Youtube, Print-On-Demand, etc. are some of the highly recommended passive income sources. However, in order to generate passive income sources from these activities, you need to be highly skilled in multiple areas. For instance, to become a YouTuber, you need video making, SEO, and digital marketing skills
If you do not have professional skills, the only way to build passive income is through business (a business that is entirely automated or you have a team to work for you) or investment in the stock market, real estate, or crypto. In order to build passive income through these methods, you need a lot of money.
It is easy to build passive income through investment. For instance, you can buy a property, rent it out and collect rental income. This is one of the best and also easiest ways to build passive income. However, in order to invest in real estate, you need to invest a lot of money. If you do not have a lot of money for investment, you can invest in the stock market and build a passive income source. You will regularly receive passive income in the form of stock dividends. If you have little money, you can still build a passive income source by investing in crypto and earning profits through staking or even trading. You can also earn passive income from youtube or a blog, but you still need money to pay for domain and hosting (for a blog) and spend on marketing (for the blog and youtube). Affiliate marketing or dropshipping store is also a good passive income source but you still need money to invest in an affiliate website. The only passive income source that does not require any investment is earning royalties from your books. However, in order to earn from books, you need to be an exceptionally talented writer.
One of the easiest ways to build a passive income source is to invest, when you invest, you generate passive income. Let's say you spent $1000 to buy stocks. When the market is favorable, you can earn a $10-15 percent annual return on your stocks, In order to earn this return on your investment, you don't have to work. You can earn passively when you invest in a business (as opposed to starting your own business). You can also earn by investing in crypto. But earning passive income through investment is risky. You don't have to always invest to earn passively, you can use your knowledge and expertise to earn passively. For instance, you can write a book and earn passive income
When you have an Active Income, you sure have control over your earnings because you know how much money is coming, however, I don't think you can earn a lot of money. When you have Passive Income, you sure have more free time, but "making money without working" is a half-truth. Passive income means, you have worked hard in the past to create this product or income stream and it is giving you a return in the present and might continue to give you a return in the future. Going for a job is an active income, for general people, it is very difficult to climb the corporate ladder and draw a huge salary and other perks to become rich. Creating an eCommerce store that works on auto-pilot can be a positive income source, you work hard to create your store, work hard to get it ranked high on a search engine, and then sit and watch profits grow. This also does not happen easily.