If you are looking for a way to build wealth, you'll have to do more than trade your time for a paycheck. You'll have to find ways to earn money that doesn't involve continuous labor. This is called passive income.
In fact, many rich people earn a large portion of their wealth through passive income streams. This provides them with ways to earn money while they are sleeping or taking part in leisure activities.
The truth is there is no shortage of ways to create a passive income. Although it may take some time to create this type of income, the rewards will be worth the effort. Here are the top 5 ways to create a significant passive income.
Depending on the cost of rent in your area, you can earn a great deal of money as a landlord. In some areas, landlords earn hundreds (or thousands) of dollars in passive income each month.
Take a look at the following example. In the District of Columbia, the average cost of rent is approximately $2,000 per month. If your mortgage for a 5-unit apartment building is $4,500 per month, you can earn as much as $5,500 per month in passive income (before expenses and taxes). In a year, it's possible for you to earn $66,000 on one unit.
If you aren't interested in managing your tenants and their issues, you could hire a property management company and a maintenance crew. By hiring people to manage the property, you can allot your time to other projects.
There are thousands of companies that will pay you to promote their sites on the internet. This is known as affiliate marketing.
As an affiliate marketer, your primary goal is to find ways to promote the company's site. Each time the company makes a sale as the result of your efforts, you will be paid a percentage of the sell.
It's easy to find lucrative affiliate marketing opportunities. Here is a list of a few companies that will pay you to promote businesses on your site.
When it comes to investing, buying and selling stocks has a history of creating massive amounts of passive income for investors. In fact, Warren Buffet is one of the wealthiest men in the world as a result of the stock market.
The best part about buying and selling stocks is you can do it from the comfort of your home. The only thing that you'll need is a computer and a brokerage account. You can buy and sell stocks for as little as $5 per trade.
Before you open a brokerage account, you should know that purchasing and selling stocks shouldn't be viewed as a get-rich quick scheme. Although it's possible for you to earn lots of money in passive income, buying and selling stocks can be a risky activity.
The age of the internet has created an information society. There are plenty of people who are willing to pay their hard-earned cash for the right information.
A good way to earn passive income online is by selling digital books. After you write the book, you can sell it on sites such as Etsy and Amazon.
You can sell books even if you aren't a good writer. Hire an inexpensive ghostwriter to put your ideas into a best-selling eBook.
Don't be fooled by the latest Forbes List of the richest people in the world. There are billions of people who are struggling to make ends meet.
If you have capital and the willingness to lend money to people with 'less-than-stellar' credit, you can make money with peer-to-peer lending. Here's how it works.
When you partner with these lending clubs, you will earn more money than you would by putting your money into a savings account. Another benefit is investing in these loans is less risky than the stock market.
By getting involved in these activities, you can earn a considerable amount of money in passive income.