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COVID-19 had an extremely negative effect on the U.S. economy. Around 30 million U.S. employees gained unemployment as of July 2020, which amounts to about 1 in 5 jobs, according to The New York Times. People are now beginning to look into ideas for passive income to make a sustainable living in the future.
If you’re one of the millions of unemployed Americans, or you’re actually underemployed, it may be time to start earning passive income.
Ideas For Passive Income: Why Now?
Passive income may sound too good to be true, but it’s not what it sounds like. Financial expert Dave Ramsey describes it as income that needs little effort to earn every day. Often the income can be so passive that you receive it while you’re sleeping, while other projects require more effort. All passive income needs patience and caution in setting up the system and tracking earnings.
In a time when COVID-19 has shut down several workplaces, the U.S. is in a recession and analysts really have no idea how long the economy will be in a decline, it’s a smart idea to build several revenue sources to secure your personal finances. If you’re unemployed, you can start brainstorming ideas for passive income and then decide on a direction to move.
If you don’t know how to get started, you can try some passive income ideas here.
1. Build Online Courses
Another way to gain passive income is to build an online course. You can customize your course, place it on your website, or use services like Teachable to make your course simple. Although this is one of the best ideas for passive income, you need to start working before you start earning. This will include choosing a subject on which you are an expert and producing course material, be it slideshows, e-books, videos or podcasts.
2. Start Affiliate Marketing
If you were to ask me about what is the best monthly passive income idea? Then I would answer with Affiliate Marketing.
Affiliate marketing includes advertising services/products from other people and making profits. Just put a link to a product on your blog, website, or social media page and start earning money. One of Amazon Associates’ most common affiliate programs. Some other choices are Builderall and ClickBank.
The larger your audience, the more money an affiliate program can earn. To start earning passive income through affiliate marketing, use SEO keywords to build a site in a certain niche, and create content around it. You will need to know web development, link building, and conversion optimization. Affiliate marketing will always be one of the ideas for passive income. There’s plenty of work upfront, but if you put in time and effort, you can get the ball rolling after around six months.
3. Lend Money
If you have the money you can start collecting interest as passive income. You can log into a peer-to-peer lending network, lend people money, and cut the bank out from the loop.
Before you invest in any peer-to-peer lending network, take the time to understand the risks as well as how the platform treats borrowers who don’t repay the loan.
4. Rent Out Spaces
If your home has an empty room, you can list it on Airbnb or Vrbo or find a roommate. Marketing your home to holidaymakers and business travelers works especially well if you live in an environment that draws out-of-town tourists. If you use a vacation listing platform, make sure you have a business license to operate lawfully and follow all local rental laws. Make sure visitors have fantastic experiences, so they leave excellent reviews.
Renting your parking space may be one of the ideas for passive income but it works. If you live in a city where parking is scarce, you can make more money on-site than if you live in a less crowded place.
5. Real Estate Investing
Investing in real estate and renting a tenant can contribute to earning passive income, but it takes up front some effort and cash. You’ll need to study the real estate market, probably repair a house, find a tenant, and deal with maintenance and paperwork, but after setting up, you can earn passive income.
Final Thoughts On Ideas For Passive Income
There are several forms of passive income. These are only some of the more popular sources of passive income, but others catch on. No income is really passive, because even though you’re just saving and spending your money, you still have to do some analysis to decide though your investment will pay off. If a passive income argument sounds too good to be true, you need to do some extra research to make sure you get a genuine opportunity.
Usually, you should not regard these ideas for passive income as full-time work. If you have more time now because you’ve been laid off and experience a pay loss or simply want to raise your emergency savings fund, you can put your energy into passive income and start protecting your financial future.
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