(MoneyHippo.com) – Passive income is any money people earn without active involvement, like dividends, rental income, or book royalties. Incorporating multiple streams of this type of income to earn cash while you do other things is a smart strategy to add effortless earnings to your bottom line. These streams initially take time to set up but continue to provide income over time without additional work.
Investing in the S&P 500, which earns about 10% historically per year on investments, is one of the easiest passive income streams to start. To start, set up a brokerage account and buy shares in this type of stock, which holds the top 500 companies on the exchange.
Selling a digital product creates another way to bring in passive income. You could create a course or write an ebook to sell online by creating a marketing strategy to continue generating sales without your involvement. All you have to do is make and effectively market a digital product people will want to buy. You can even hire someone to market the product for you and become completely hands-off while bringing in extra income. For instance, you could make e-courses available on Skillshare or sells courses or books on Amazon.
The last way to earn passive income takes upfront work but can transform into a hands-off income source. Start or buy a business, get it up and running, then hire managers and other employees to run the actual business while you collect the income it generates. Although it may take time to maintain or adjust, you can continue building income while managers and automation can eventually make the source largely passive.
Other passive income sources might include rental income, royalties, affiliate marketing dividends, and network marketing payouts. Why not look into building multiple streams of passive income now?
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